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The Other Driver Filed a Claim Against You. What Happens Now?

Quick answerTheir claim goes to your insurer, which investigates, decides whether you are legally responsible, and pays from your liability coverage up to your limits if you are. Your job is to report promptly, cooperate with your own insurer, and send it every letter or call from the other side. In California, a vehicle's owner can also be liable when someone else drives it with permission, within statutory limits.

Most claims guides are written for the person who was hit. This one is for the other side of the same accident: the letter, the call from another insurer, or the lawyer's notice that says someone is holding you responsible.

What happens, in order

StageWhat happensYour part
First contactThe other driver, their insurer or their lawyer reports a claimTell your insurer immediately, even if you think you were not at fault
InvestigationYour adjuster gathers statements, photos, the police report and estimatesGive your account, your photos and witness names
Liability decisionYour insurer decides how much, if any, of the fault is yoursAsk for the basis in writing if you disagree
Payment or denialYour insurer pays within your limits, or deniesNothing to pay yourself unless the claim exceeds your limits
Lawsuit, if anyYour insurer defends you under the policy's termsForward any court papers to your insurer the day they arrive

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Don't do this

When you weren't driving: owner liability in California

Vehicle Code 17150 makes every owner liable for death or injury to person or property caused by someone driving the vehicle with the owner's express or implied permission. Vehicle Code 17151 limits that owner liability to $15,000 for one person's injury or death, $30,000 for more than one person, and $5,000 for property damage in one accident, unless the liability arises through an employer-employee or principal-agent relationship. The driver's own liability is not limited by those figures.

What your adjuster may ask you for

Expect requests for your account of the accident, your photos and any dashcam footage, the names of passengers and witnesses, repair estimates for your own car, and the police report number. If someone else was driving your car, your adjuster will also want to know who, whether they had permission, and whether they have insurance of their own, because their policy may sit alongside yours.

How fault and your record interact

For your rating, California's rules say an insurer cannot treat you as principally at fault unless your actions were at least 51 percent of the legal cause and the accident caused injury or death, or more than $1,000 in property damage. The insurer must investigate first and give you written notice of the basis, and you can ask for reconsideration within 30 days.

If the claim exceeds your limits

Your insurer pays up to your limits. Above them, the claimant can pursue you personally. If you receive a letter warning that a claim may exceed your limits, take it seriously: it is the moment to talk to your insurer about settlement within limits, and possibly to consult a lawyer of your own.

If a claim against you has shown how thin your limits are, request a quote with higher limits before renewal.

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More of what callers ask

Should I talk to the other driver's insurance company?

Tell your own insurer first and let it handle communication. Avoid giving the other insurer a recorded statement until you have spoken to your adjuster.

Can I be sued if a friend crashed my car?

Yes. Vehicle Code 17150 makes an owner liable for a permitted driver's negligence, but 17151 limits that owner liability to $15,000 per person, $30,000 per accident for injuries and $5,000 for property, unless an employment or agency relationship applies.

Will a claim against me raise my rate?

Only an accident where you are found principally at fault, under California's 51 percent rule and damage thresholds, can count against your driving record for rating. The insurer must tell you in writing and you can request reconsideration.

What if I think the other driver is lying?

Give your adjuster your evidence and witnesses. Your insurer decides liability, and you can ask for the basis of its decision in writing.