Insurance companies in California handle claims under written rules with real deadlines, and most people never learn the rules exist. Your own policy may include coverage you are not using, and the other driver’s insurer is not entitled to a recorded statement from you.
California regulates how insurers handle your claim
The Fair Claims Settlement Practices Regulations, in title 10 of the California Code of Regulations, set minimum standards for claim handling. They protect “claimants,” which section 2695.2 defines to include first party claimants (people claiming under their own policy, including uninsured motorist claims) and third party claimants (people making a claim against someone else’s insurance).
Behind the regulations is Insurance Code section 790.03(h), which lists unfair claims settlement practices when an insurer commits them knowingly or often enough to amount to a general business practice. The list includes:
- Misrepresenting pertinent facts or policy provisions to claimants.
- Failing to acknowledge and act reasonably promptly on communications about claims.
- Not attempting in good faith to reach prompt, fair, and equitable settlements of claims in which liability has become reasonably clear.
- Failing to promptly give a reasonable explanation for a denial or a compromise offer.
- Directly advising a claimant not to hire a lawyer.
- Misleading a claimant about the statute of limitations.
The deadlines insurers have to meet
These time limits come from sections 2695.5 and 2695.7 of the regulations. They are calendar days, not business days.
- 15 days after notice of the claim: acknowledge it, send the forms and instructions you need, including what they require as proof of claim, and begin any necessary investigation (section 2695.5(e)).
- 15 days to answer your communications that reasonably call for a response (section 2695.5(b)). This duty ends once the insurer receives notice of legal action by you.
- 40 days after proof of claim: accept or deny the claim, in whole or in part (section 2695.7(b)). “Proof of claim” means evidence in the insurer’s possession that reasonably supports the amount of the loss, whether you sent it or the insurer found it. Repair bills under your own collision and comprehensive coverage are handled under a different rule.
- If they need more time: written notice within that 40 days explaining what more they need and why, then a written update every 30 days (section 2695.7(c)(1)).
- 30 days after accepting the claim, and receiving a signed release where one is needed, to pay what was accepted (section 2695.7(h)).
Denials have rules too. A denial must be in writing, and a first party denial must list every basis for it with the facts and law behind each one. Denial letters must tell you that the California Department of Insurance can review the matter. Section 2695.7(g) also prohibits unreasonably low settlement offers.
The practical lesson: the clocks run from what the insurer receives. Send claim information in writing, keep copies, and note the date you sent it. A dated paper trail turns these rules from theory into something you can point to.
What your own policy may cover
Under section 2695.4(a), your own insurer must disclose all benefits, coverage, time limits, and other policy provisions that may apply to the claim you present. Ask for that in writing, and ask specifically about these:
Medical payments coverage
Med pay is optional coverage that pays medical bills up to a set limit regardless of who caused the crash. Many people carry it without knowing.
Uninsured and underinsured motorist coverage
Insurance Code section 11580.2 requires California auto liability policies to include uninsured motorist coverage unless the policyholder deleted it by a signed written agreement in the form the statute requires. If the at-fault driver had no insurance, this is often where recovery comes from.
A vehicle counts as underinsured only if its liability limits are lower than your own uninsured motorist limits, so if your uninsured motorist limits are no higher than the other driver’s liability limits, underinsured coverage generally adds nothing. When it does apply, it pays up to your limit minus what the at-fault driver’s insurance paid, and only after that insurance has paid out its limits. Uninsured and underinsured motorist claims also have their own deadline. Within two years of the accident, you must file suit against the at-fault driver, conclude an agreement with your insurer on the amount due under the policy, or formally start arbitration by written notice to your insurer sent by certified mail, return receipt requested. That clock runs even if the other driver’s insurance has not paid out yet. See our page on uninsured motorist claims.
Rental coverage
Rental reimbursement is usually optional coverage with daily and total limits. If the other driver was at fault, the loss of use of your car is also part of your claim against them; Civil Code section 1431.2 lists loss of use of property among economic damages.
You do not owe the other driver’s insurer a recorded statement
You have no contract with the other driver’s insurance company, and you are generally not required to give it a recorded statement. The adjuster will usually ask early, often before you know the full extent of your injuries, and the recording can be used later to argue that you were not hurt or that you shared the blame. Our post on recorded statements explains what to say.
Your own insurer is different. Your policy likely requires you to cooperate, which can include giving a statement, especially on an uninsured motorist claim. Refusing your own carrier can put your coverage at risk.
What a release means
A release ends the claim. Once you sign it and accept payment, you generally cannot come back for more, even if your injuries turn out to be worse than you thought.
Civil Code section 1542 says a general release does not cover claims you did not know or suspect existed when you signed it, if knowing about them would have materially affected your settlement. But section 2695.4(e) allows insurers to include a waiver of section 1542 in a release. If you do not have a lawyer, the insurer must first disclose and fully explain the legal effect of that waiver in writing. With the waiver, you can give up claims for injuries that have not been diagnosed yet.
An insurer cannot send a partial payment check with language releasing the insurer or its insured from total liability unless the policy limit has been paid or you agreed to a compromise settlement (section 2695.4(f)). And an insurer cannot tell you your rights may be impaired if you do not sign a form or release by a deadline, except to notify you of a statute of limitations, a policy provision, or a government claim deadline (section 2695.7(i)).
Your own deadline to file a personal injury lawsuit is generally two years under Code of Civil Procedure section 335.1. If a government vehicle, a public employee, or a dangerous public road was involved, you must first present a written claim to that public entity, generally within six months of the crash, under Government Code section 911.2. If you do not have a lawyer, section 2695.7(f) requires the insurer to give you written notice of a time limit it may rely on to deny the claim at least 60 days before it expires, or 30 days for an uninsured motorist claim under your own policy. Do not count on that notice; calendar the date yourself.
What to do this week
- Get your declarations page and write down your med pay, uninsured, underinsured, and rental limits.
- Ask your insurer in writing what benefits and time limits apply to your claim.
- Decline the other insurer’s recorded statement request.
- Send claim documents in writing and keep a dated log of every call and letter.
- Count 40 days from when the insurer received your proof of claim, and follow up in writing if you hear nothing.
- Do not sign a release until you know what you are releasing. For how claims are valued, see what a car accident case is worth in California.
About the author. Joshua B. Adelpour is the founder of Not My Fault Law Group, APC, a California personal injury firm based in Woodland Hills. He is licensed by the State Bar of California, Bar No. 318226, and spent nearly a decade defending insurance companies in civil litigation before opening the firm. Call (213) 800-0706 for a free consultation.
This article is general information about California law and is not legal advice. Reading it does not create an attorney client relationship. Every case depends on its own facts. Last updated October 6, 2026.