How to file, fight delays, and recover what you are owed — with the Insurance Code §790.03 protections every California driver should know.
By John Quigley · Updated June 17, 2026
A car crash on the I-5 near downtown or a fender-bender in a Mission Valley parking lot can turn into a months-long fight with an insurance company that has every incentive to pay you as little as possible. California law, however, gives policyholders and accident victims strong tools — from strict claims-handling standards to mandatory uninsured motorist coverage. This guide walks through how auto insurance claims actually work in California, what San Diego drivers should do at each stage, and when an adjuster's conduct crosses the line into bad faith.
Understanding which type of claim you are making determines what rights you have. A first-party claim is one you file with your own insurer — for example, collision coverage to repair your car, medical payments (MedPay) coverage, or uninsured motorist benefits. A third-party claim is one you file against the at-fault driver's insurer.
The distinction matters because California's bad-faith protections apply differently. Your own insurer owes you a duty of good faith and fair dealing rooted in your contract. The at-fault driver's insurer owes you no such direct duty under Moradi-Shalal v. Fireman's Fund (1988), which eliminated the private right of action a third party once had to sue another person's insurer directly for unfair practices. That is why pursuing your own UM/UIM and MedPay coverage is often the stronger path.
Every driver must carry proof of financial responsibility under Vehicle Code §16020. As of January 1, 2025, California raised its minimum liability limits — the first increase in decades. Driving without coverage is not just risky; it exposes you to license suspension and impound.
| Coverage Type | Minimum Limit (2025+) | Statute |
|---|---|---|
| Bodily injury, one person | $30,000 | Veh. Code §16056 |
| Bodily injury, per accident | $60,000 | Veh. Code §16056 |
| Property damage | $15,000 | Veh. Code §16056 |
These limits are low for the cost of medical care in San Diego County, which is why uninsured and underinsured motorist coverage is so important. A single emergency-room visit and orthopedic follow-up can exceed $30,000.
Insurance Code §11580.2 requires every California auto policy to include uninsured motorist (UM) and underinsured motorist (UIM) coverage unless the policyholder waived it in writing. If you never signed a waiver, you have UM/UIM coverage matching your liability limits, even if you do not remember buying it.
The heart of California claims regulation is the Unfair Insurance Practices Act. Insurance Code §790.03(h) lists specific prohibited acts when claims arise with "such frequency as to indicate a general business practice," including:
These standards are reinforced by the Fair Claims Settlement Practices Regulations (10 C.C.R. §2695, et seq.), which impose concrete timelines — insurers must generally acknowledge a claim within 15 days, accept or deny it within 40 days of receiving proof of claim, and explain any denial in writing.
California recognizes a tort claim for breach of the implied covenant of good faith and fair dealing. The legal test, from cases like Wilson v. 21st Century Insurance, is whether the insurer unreasonably withheld benefits due under the policy. An honest dispute over value is not bad faith; an unreasonable refusal to investigate or pay is.
Bad-faith damages can far exceed the policy limits. They may include:
San Diego County's freeway network — the I-5, I-8, I-15, I-805, and SR-163 through Balboa Park — produces a high volume of multi-vehicle and high-speed collisions, many involving out-of-state drivers and a significant share of uninsured motorists. Lawsuits arising from these crashes are filed in the San Diego Superior Court, with the Hall of Justice and the central civil division downtown handling most auto cases, and branch courts in Vista, El Cajon, and Chula Vista serving North County, East County, and the South Bay.
If your claim involves a government vehicle — a city bus, a MTS vehicle, or a county truck — a separate and far shorter deadline applies: you must file an administrative claim under the Government Claims Act (Government Code §911.2) within six months of the incident before you can sue. Missing that window can end an otherwise strong case.
California follows pure comparative negligence. Even if you were partly at fault, you can still recover, with your award reduced by your percentage of fault. If you are found 30% responsible for a crash and your damages are $100,000, you recover $70,000. Insurers know this and often try to shift blame onto you to shrink the payout — another reason careful documentation matters from day one.
Our directory connects you with experienced California attorneys across San Diego County.
Find an AttorneyInsurance claims reward preparation and persistence. Know your deadlines, document your losses, pursue your own UM/UIM coverage when the other driver is uninsured, and recognize that California law gives you real leverage when an insurer behaves unreasonably. For related reading, see our guides on insurance bad faith in San Diego and California car accident claims.