Notify your insurer right away and let them deal with the other party or their lawyer. Liability insurance exists for exactly this: within your limits, the insurer pays the claim and defends you. Don't pay cash privately and don't negotiate with the other side's lawyer yourself.
Notify your insurer now
Give your insurer and your agent the other party's details, any attorney letter or threats.
Don't settle or negotiate
A private payment may not end the claim and can complicate your insurer's handling.
Know the renewal impact
Injury claims weigh heavily on your record and usually show up at the next renewal.
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What liability coverage does here
Bodily Injury and Property Damage liability pay for harm you cause others. When someone claims or sues, your insurer pays within your limits and provides your defense; defense costs generally do not reduce your limits.
3 things not to do
- Don't pay cash privately. It may not end the claim.
- Don't talk to their lawyer or sign anything. Let your insurer's adjuster or assigned attorney handle it.
- Don't wait. Policies require prompt notice; delay can complicate the claim.
Could I owe more than my limits?
If a judgment exceeds your liability limits, you may owe the rest. That's why we rarely recommend state minimum limits, and why families with property or savings often add an umbrella policy.
California's minimum is $30,000 per person / $60,000 per accident for injury plus $15,000 for property damage. A serious injury can exceed that quickly.
Frequently asked questions
Will they sue over car repairs alone?
Property damage claims are usually handled by the insurers directly. Attorneys are more common when someone is injured.
The other driver keeps calling and threatening me.
Ask them to contact your insurer, give them your claim number, and tell your agent.
How much will this affect my renewal?
Injury claims weigh heavily and usually show up at the next renewal; the impact depends on fault and the amount paid.
This article is general information for California and is not a promise of coverage or claim payment. Coverage, pricing and terms depend on each insurer's policy and underwriting.