Overview

You've received a demand letter from someone claiming injuries from a car accident involving you. California is a "fault" state using pure comparative negligence, meaning liability is apportioned based on each party's degree of fault. This guide helps you evaluate the claim, understand your defenses, and respond strategically.

Notify Your Insurer

Your insurance policy requires prompt notification of claims. Failing to notify could jeopardize coverage. Contact your insurer immediately.

Time Matters

The claimant has 2 years from the accident date to file suit (CCP 335.1). A prompt response can lead to favorable settlement before litigation costs accrue.

Comparative Negligence

Under Civil Code 1714, damages are reduced by the claimant's percentage of fault. Even partial fault helps reduce your liability.

Common Auto Accident Claims

  • Medical expenses - Past and future treatment costs
  • Lost wages - Time missed from work during recovery
  • Pain and suffering - Non-economic damages for physical and emotional distress
  • Property damage - Vehicle repair or replacement costs
  • Loss of earning capacity - Reduced ability to earn in the future
  • Loss of consortium - Impact on spousal relationship
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Case review, professional response letter, liability analysis, and settlement strategy recommendations.

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Evaluate the Claim

Before responding, thoroughly assess the claim's validity and your potential liability. Gather all available evidence and documentation.

Liability Assessment

Factor Considerations Impact
Police Report Citations issued, officer's fault determination, witness statements HIGH
Traffic Violations Any Vehicle Code violations contributing to accident HIGH
Witness Accounts Independent witness statements supporting your version MEDIUM
Physical Evidence Photos, dashcam footage, vehicle damage patterns HIGH
Claimant's Conduct Evidence of speeding, distraction, or other negligence MEDIUM

Evidence to Gather

  • check Police report and citations
  • check Photos from accident scene
  • check Dashcam or surveillance footage
  • check Witness contact information

Medical Claim Review

  • check Gap in treatment after accident
  • check Pre-existing conditions noted
  • check Treatment consistent with impact
  • check Bills from actual providers (not liens)

Low-Impact Collisions

In minor impact cases, the severity of claimed injuries may not match the minimal vehicle damage. California courts recognize that visible damage does not always correlate with injury, but significant disparity raises credibility questions.

Your Defenses

California law provides several defenses to auto accident liability claims. Identify which apply to your situation.

Comparative Negligence (Civil Code 1714)

California's pure comparative negligence system reduces damages by the claimant's percentage of fault. Even 90% at-fault claimants can recover 10% of their damages, but this significantly reduces your exposure.

When to use: Claimant was speeding, ran a light, was distracted, following too closely, or otherwise contributed to the accident.

No Causation / Pre-Existing Condition

You're only liable for injuries actually caused by the accident. Pre-existing conditions, subsequent injuries, or unrelated medical issues are not your responsibility.

When to use: Medical records show degenerative conditions, prior accidents, or injuries occurring after your incident.

Failure to Mitigate Damages

Claimants must take reasonable steps to minimize their damages. Failing to follow medical advice, refusing treatment, or delaying care can reduce recovery.

When to use: Claimant failed to seek timely treatment, ignored doctor's orders, or unreasonably prolonged recovery.

Statute of Limitations (CCP 335.1)

Personal injury claims must be filed within 2 years of the accident. Property damage has a 3-year limit (CCP 338(c)).

When to use: The demand letter arrives more than 2 years after the accident date.

Emergency Doctrine

A driver facing a sudden emergency not of their own making is held to a lower standard of care if they react as a reasonable person would under the circumstances.

When to use: You were reacting to an unexpected hazard, another driver's sudden action, or road emergency.

Weak Defenses to Avoid

  • "They seemed fine at the scene" - Delayed symptom onset is medically recognized
  • "My car had minimal damage" - Injury doesn't always correlate with damage
  • "They're just after money" - Juries don't respond well to this argument
  • "I wasn't cited" - Lack of citation doesn't prove no negligence

Response Options

Based on your evaluation, choose the appropriate response strategy.

Tender to Insurance

Forward the demand to your insurance company. They have a duty to defend and will handle the response. This is typically the best approach when you have coverage.

  • Insurer handles negotiation
  • Protects coverage rights
  • Professional claims handling

Negotiate Settlement

If you're uninsured or handling personally, negotiate directly. Focus on liability disputes and damages verification.

  • Control over outcome
  • May reduce costs
  • Quicker resolution

Dispute Liability

When you have strong evidence the accident wasn't your fault, formally dispute liability with supporting documentation.

  • Preserves all defenses
  • May deter weak claims
  • Sets up comparative fault

Challenge Damages

Accept some liability but dispute the claimed damages as excessive, unrelated, or unsupported.

  • Reduces exposure
  • Focuses on real issues
  • Can lead to compromise

Exposure Analysis: Typical Soft Tissue Claim

Example: Rear-end collision, 3 months treatment

Medical expenses claimed $8,000
Lost wages (2 weeks) $3,000
Pain and suffering (1.5-3x meds) $12,000-$24,000
Property damage $4,000
TYPICAL DEMAND RANGE $27,000-$39,000

Settlement Ranges

Most soft tissue auto accident claims settle for 1-2x medical expenses plus lost wages. Demands are typically inflated by 2-3x to allow negotiation room. A $35,000 demand might settle for $15,000-$20,000 if liability is clear.

Sample Responses

Copy and customize these response templates for your situation.

Acknowledgment & Insurance Referral
I acknowledge receipt of your demand letter dated [DATE] regarding the automobile accident that occurred on [ACCIDENT DATE]. This matter has been forwarded to my insurance carrier, [INSURANCE COMPANY], Claim Number [CLAIM NUMBER]. Please direct all future correspondence regarding this claim to: [ADJUSTER NAME] [INSURANCE COMPANY] [ADDRESS] [PHONE NUMBER] My insurer will respond to your demand in due course.
Liability Dispute Response
I have reviewed your demand letter regarding the accident of [DATE] and respectfully dispute liability. The evidence establishes that you were [describe claimant's negligence - e.g., "following too closely," "failed to yield," "exceeded the speed limit"]. The police report [confirms/does not contradict] this account, and [describe supporting evidence - witness statements, photos, etc.]. Under California's comparative negligence principles (Civil Code 1714), your own negligence contributed substantially to this accident. Any liability on my part, which is denied, would be significantly reduced by your comparative fault. I am prepared to discuss this matter further, but cannot agree to the liability allocation your demand assumes.
Damages Challenge Response
While I am prepared to accept some responsibility for the accident of [DATE], I dispute the damages claimed in your demand letter. Specifically, I note the following concerns: [identify issues - gap in treatment, pre-existing conditions, excessive treatment duration, unrelated injuries, etc.]. The medical records you provided indicate [describe relevant medical history or treatment gaps]. Additionally, the claimed amount of $[AMOUNT] appears excessive for the type of impact and injuries alleged. I am prepared to make a reasonable offer based on the documented, accident-related damages. Please provide [specific documentation requested] to support your claim.
Settlement Offer
Without admitting liability, and in the interest of resolving this matter, I am prepared to offer [$AMOUNT] in full settlement of all claims arising from the accident of [DATE]. This offer is contingent upon execution of a complete release of all claims against me, including any claims for personal injury, property damage, and any other damages arising from this incident. This offer will remain open for [14/21] days. If not accepted by [DATE], the offer is withdrawn and I will defend any litigation vigorously. Please confirm in writing if this settlement is acceptable.

Next Steps

What to do after receiving an auto accident demand letter.

Step 1: Notify Insurance

Contact your auto insurance company immediately. Provide them a copy of the demand letter and all accident documentation.

Step 2: Preserve Evidence

Gather and preserve all photos, witness information, dashcam footage, and communications related to the accident.

Step 3: Review the Demand

Analyze the claimed injuries, treatment, and damages. Look for inconsistencies, gaps, or excessive claims.

Step 4: Respond Strategically

Work with your insurer or attorney to craft an appropriate response based on liability and damages analysis.

If a Lawsuit is Filed

  • 30 days to respond - You must file an answer or face default judgment
  • Notify insurer immediately - They will assign defense counsel
  • Discovery phase - Depositions, interrogatories, and document requests
  • Mediation - Many courts require settlement conferences

Insurance Considerations

  • Policy limits - Know your liability coverage limits
  • Excess exposure - If claim exceeds limits, consult personal counsel
  • Bad faith - Insurer must act in good faith to protect you
  • Reservation of rights - Understand if insurer reserves coverage defenses

Get Professional Help

Auto accident claims can involve significant liability. Get a professional response letter drafted and protect your interests.

Schedule Consultation - $450

California Resources

  • DMV Accident Reporting: dmv.ca.gov - Required for accidents with injury or $1,000+ damage
  • California Courts Self-Help: courts.ca.gov/selfhelp - Litigation guidance
  • California Vehicle Code: leginfo.legislature.ca.gov - Traffic laws and regulations