Legal Resources

What to Do After a Car Accident in California

The first 24 hours after an accident are critical. What you do (and don't do) can directly affect your ability to recover compensation. Here's a step-by-step breakdown.

1. Stop and check for injuries. California Vehicle Code 20001 requires drivers to stop at the scene. Call 911 if anyone is injured.

2. Get a police report. Even for minor collisions, a police report creates an official record of what happened. Request the report number before leaving the scene.

3. Document everything. Photograph vehicle damage, the scene, traffic signals, weather conditions, skid marks, and any visible injuries. Exchange insurance information with the other driver.

4. Seek medical attention promptly. Even if you feel fine, get checked. Soft tissue injuries, concussions, and internal bleeding may not show symptoms immediately. Medical records from the day of the accident strengthen your claim.

5. Do not give a recorded statement to the other driver's insurance. Their adjuster's job is to minimize what they pay. Anything you say can be used to reduce your claim.

6. Consult an attorney before accepting any settlement offer. Initial offers from insurance companies are almost always below what your claim is worth. An attorney can evaluate the full value of your case, including future medical costs and lost earning capacity.

California's Comparative Negligence Rule, Explained

Many accident victims don't pursue claims because they think they share some blame. That's a costly mistake.

California follows a pure comparative negligence system. This means you can recover damages even if you were partially at fault. Your recovery is reduced by your percentage of fault, but it's never eliminated entirely.

For example: if you're found 30% at fault for an accident and your damages total $100,000, you can still recover $70,000. Even at 90% fault, you can recover 10% of your damages.

Insurance companies routinely exaggerate the claimant's fault percentage to lower payouts. Having an attorney who can challenge their liability arguments makes a significant difference in your recovery.

Statute of Limitations for Personal Injury in California

In California, you generally have 2 years from the date of injury to file a personal injury lawsuit (Code of Civil Procedure 335.1). For wrongful death, the deadline is 2 years from the date of death.

There are exceptions. Claims against government entities (cities, counties, the state) require a formal claim within 6 months of the incident. The discovery rule may extend the deadline if an injury wasn't immediately apparent. Minors may have additional time.

Missing the statute of limitations permanently bars your claim. If you're unsure about your deadline, consult an attorney immediately.

LLC vs. Corporation: Choosing the Right Entity for Your California Business

LLC (Limited Liability Company): Flexible management structure, pass-through taxation by default, fewer formalities. Best for small businesses, real estate holdings, and partnerships. California charges an annual $800 franchise tax plus a fee based on gross receipts over $250,000.

C Corporation: Required if you plan to raise venture capital or go public. Separate tax entity (subject to double taxation unless profits are reinvested). California's corporate tax rate is 8.84%. Best for businesses seeking outside investment or planning an IPO.

S Corporation: Pass-through taxation like an LLC, but with stricter rules (limited to 100 shareholders, one class of stock). Can save on self-employment taxes compared to an LLC. California taxes S corps at 1.5% of net income, with the same $800 minimum.

The right choice depends on your specific situation: number of owners, tax implications, fundraising plans, and long-term exit strategy. Getting this decision right at formation prevents costly restructuring later.

When Your Insurance Company Denies a Legitimate Claim

Insurance companies have a legal obligation to handle claims in good faith. When they don't, California law provides remedies beyond the original claim amount.

Signs of bad faith: Unreasonable delays in processing your claim. Denying a claim without a thorough investigation. Offering significantly less than the claim is worth. Misrepresenting policy language to avoid paying. Failing to explain the reason for denial.

Your options: File a complaint with the California Department of Insurance. Hire an attorney to pursue a bad faith lawsuit. In a successful bad faith action, you may recover your policy benefits plus emotional distress damages, attorney's fees, and in extreme cases, punitive damages.

Bad faith applies to all types of insurance: auto, homeowner's, disability, life, and health. If your insurer is dragging its feet or denying a claim you believe is valid, consult an attorney to evaluate whether bad faith has occurred. Insurance bad faith claims →