📋 Overview

You've received a demand letter claiming you caused a car accident and owe damages. Before responding, understand that California uses a "pure comparative negligence" system - your liability may be reduced by the claimant's own fault. This guide helps you evaluate the claim and respond strategically.

⚠ Don't Admit Fault

Any statements in your response may be used against you. Be factual but don't concede liability.

🕒 Notify Your Insurer

Forward the demand to your auto insurance carrier immediately. They may provide defense.

💰 Understand Exposure

California has no cap on personal injury damages. Serious injuries can result in significant liability.

Key Liability Factors

  • Right of way - Who had the right of way at the time of collision
  • Traffic violations - Any Vehicle Code violations by either party
  • Comparative fault - Claimant's contributing negligence reduces your liability
  • Causation - Connection between accident and claimed injuries
  • Damages proof - Medical records, bills, and other documentation
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🔍 Evaluate the Claim

Before responding, gather evidence and assess your liability exposure.

Liability Assessment Matrix

Accident Type Typical Liability Defense Potential
Rear-end collision (you rear-ended) Presumed at fault Limited - must show sudden stop
Left turn (you turning) Usually at fault Possible - if other speeding
Intersection collision Depends on facts Good - liability often disputed
Lane change collision Usually the lane changer Moderate - blind spots, signals
Parking lot accident Often shared Good - comparative fault common

💡 Gather Your Evidence

  • Police report (obtain if you don't have)
  • Photos of damage, scene, traffic signs
  • Witness contact information
  • Your written recollection of events
  • Dashcam footage if available

🛡 Your Defenses

California's pure comparative negligence system means even partial defenses reduce your liability.

Comparative Negligence (CC 1714)

If the claimant was partially at fault (speeding, distracted, failed to avoid), your liability is reduced by their percentage of fault. Even 10-20% comparative fault significantly reduces damages.

When to use: Any evidence claimant contributed to the accident.

Sudden Emergency Doctrine

If you faced a sudden emergency not of your making, your reaction is judged by what a reasonable person would do in that emergency, not with hindsight.

When to use: Other driver made sudden illegal maneuver; debris in road; mechanical failure.

Failure to Mitigate

Claimant must take reasonable steps to minimize damages. Delayed treatment, non-compliance with medical advice, or failure to wear seatbelt may reduce recovery.

When to use: Gap in treatment, ignored medical recommendations, seatbelt non-use.

Pre-Existing Conditions

While you take the plaintiff as you find them, you only owe damages for aggravation of pre-existing conditions, not the underlying condition itself.

When to use: Evidence of prior treatment to same body part.

🚨 Don't Use These Weak Defenses

  • "They could have avoided me" - Usually applies to you too
  • "The damage wasn't that bad" - Low property damage doesn't mean no injury
  • "They didn't seem hurt at the scene" - Adrenaline masks injuries

⚖ Response Options

Strategic options based on your evaluation.

Forward to Insurer

If you have liability coverage, your insurer has a duty to defend and indemnify. Let them handle it.

Dispute Liability

If you have strong defenses, respond disputing fault with supporting evidence.

Negotiate Settlement

If liability is clear, negotiating may cost less than litigation. Consider policy limits.

Dispute Damages

Accept some liability but challenge inflated or unsupported damage claims.

📊 Exposure Analysis Example

Soft tissue injury claim

Claimed medical specials$25,000
Lost wages claimed$10,000
General damages (2-3x specials)$50,000-$75,000
If 30% comparative fault-30%
ADJUSTED EXPOSURE$59,500-$77,000

📝 Sample Responses

Professional response templates for car accident demands.

Dispute Liability
I am in receipt of your demand letter dated [DATE] regarding the [DATE] motor vehicle incident. I respectfully dispute the characterization that I was at fault for this collision. Based on my recollection and the evidence available: [Describe your version - e.g., "Your client entered the intersection against a red light..." or "Your client made an unsafe lane change without signaling..."] The police report [supports my position / does not establish fault / notes that your client was cited for...]. Under California's comparative negligence law (Civil Code 1714), your client's own negligence in [describe their fault] significantly contributed to this incident. I have forwarded your demand to my insurance carrier at [INSURER] for their evaluation. Any further communications should be directed to them at [CONTACT INFO].
Challenge Damages
We acknowledge receipt of your demand for [$AMOUNT]. While we are willing to discuss resolution, your demand significantly overstates the reasonable value of this claim. Regarding your client's claimed damages: - The medical treatment appears excessive for the injuries documented - There is a [X-month] gap in treatment suggesting resolution - Lost wage documentation is incomplete - Prior medical records indicate pre-existing condition to the [body part] Based on our evaluation, reasonable damages are in the range of [$RANGE]. We are prepared to discuss settlement at this level. Please advise if your client would consider a reasonable resolution.
Referral to Insurer
I have received your demand letter dated [DATE]. I have immediately forwarded it to my automobile liability insurance carrier: [INSURANCE COMPANY NAME] Claim Number: [IF ASSIGNED] Claims Department: [PHONE/ADDRESS] All further communications regarding this matter should be directed to my insurer. I am not authorized to discuss settlement or make any admissions, and any such discussions must occur through my insurance carrier.

🚀 Next Steps

Step 1: Notify Insurer

Forward demand immediately. They have contractual rights and duties.

Step 2: Preserve Evidence

Gather all documents, photos, and witness information while fresh.

Step 3: Don't Communicate

Let your insurer or attorney handle all contact with claimant.

Step 4: Understand Coverage

Know your policy limits and whether you have excess exposure.

⚠ Excess Exposure Warning

If the demand exceeds your policy limits, you may be personally liable for the excess. Consider consulting a personal attorney in addition to cooperating with your insurer's defense.

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California Resources

  • Civil Code 1714: General negligence liability standard
  • Vehicle Code: Traffic laws and violations
  • CCP 335.1: Two-year statute of limitations for personal injury
  • CACI 400-403: Jury instructions on negligence