Another driver hit you, and now you are told to file a “third-party claim.” That phrase sounds like paperwork, but it decides who pays for your injuries. In California, a third-party claim is a claim you make against the at-fault driver’s liability insurance, not your own. Since January 1, 2025, the smallest policy a California driver may carry is twice as large for injuries as it used to be, and that change matters for anyone hurt in a crash today.
What a Third-Party Claim Means After a California Car Crash
An insurance claim has three possible parties. The first party is the person who bought the policy. The second party is the insurance company. A third party is someone outside that contract who was harmed by the person the policy covers.
So if another driver runs a red light and hits you, your claim against that driver’s insurer is a third-party claim. A claim on your own policy, such as collision or medical payments coverage, is a first-party claim. The firm’s earlier post on third-party claims in insurance explains the general idea. This guide covers what the 2025 change means for an injury claim in California.
The Minimum Insurance Limits Doubled on January 1, 2025
California’s financial responsibility law sets the smallest amount of liability insurance a driver must carry. For policies issued or renewed on or after January 1, 2025, Vehicle Code section 16056 requires at least:
- $30,000 for injury or death of one person in one accident.
- $60,000 for injury or death of two or more people in one accident.
- $15,000 for damage to the property of others.
Before that date, the minimums were $15,000, $30,000, and $5,000. The same statute raises them again for policies issued or renewed on or after January 1, 2035, by another $20,000, $40,000, and $10,000.
The key words are “issued or renewed.” A driver whose policy was last renewed before January 1, 2025, could still have had the older limits for part of that year. Today, most policies have renewed at least once since then, but the date on the other driver’s policy is still worth checking.
Why the Other Driver’s Policy Limit Shapes Your Claim
A third-party claim is usually paid from the at-fault driver’s liability coverage. If that driver carries only the minimum, the insurer’s promise to pay for one injured person stops at $30,000. If two or more people were hurt, all of them share the $60,000 limit for that accident.
That does not mean your damages stop at the policy limit. It means the insurance money available from that one policy does. Anything above the limit would have to come from another source, such as another at-fault party, the driver personally, or your own coverage.
Your Own Policy Can Step In When Theirs Runs Out
Underinsured motorist coverage is part of your own auto policy. Insurance Code section 11580.2, subdivision (p), defines an underinsured vehicle as one that is insured “for an amount that is less than the uninsured motorist limits carried on the motor vehicle of the injured person.”
The same subdivision says this coverage does not apply until the at-fault driver’s bodily injury limits “have been exhausted by payment of judgments or settlements,” and proof of that payment goes to your insurer. In plain terms, the third-party claim usually comes first, and your own coverage can follow. Read your declarations page to see whether you carry this coverage and how much.
A Rule That Can Shrink Your Claim If You Were Uninsured
California voters passed Proposition 213 in 1996. It is now Civil Code section 3333.4. Under that section, an injured person generally cannot recover non-economic losses, such as pain and suffering, if:
- They owned a vehicle in the crash that was not insured as state law requires.
- They were driving and cannot show the financial responsibility state law requires.
- They were driving under the influence and were convicted of that offense.
There is an exception. An uninsured owner hit by a driver who was convicted of driving under the influence is not barred from those losses. Medical bills and lost wages are economic losses, and this section does not take them away.
How Long You Have to File an Injury Lawsuit in California
A third-party claim is not a lawsuit. Talking with an insurance adjuster does not stop the legal clock. Under Code of Civil Procedure section 335.1, the deadline to file a lawsuit for an injury caused by someone else’s “wrongful act or neglect” is generally two years.
Shorter deadlines apply when a government vehicle is involved. The firm’s post on crashes with Caltrans or city vehicles explains the government claim that must come first.
Three Things to Gather Before the Adjuster Calls Back
A third-party claim moves faster and with fewer surprises when you have the basics in one place.
- The other driver’s insurance company, policy number, and the name on the policy. The crash report often lists these. The firm’s guide to getting a CHP or LAPD crash report walks through that step.
- Your own declarations page, so you know whether you carry underinsured motorist and medical payments coverage.
- Every medical record and bill from the crash, in date order, starting with the first visit.
You may also ask the other insurer what the policy limits are. Whether it shares that number before a lawsuit is up to the insurer, so a refusal does not by itself mean anything is wrong.
Common Questions About Third-Party Injury Claims
Is a third-party claim the same as suing the other driver?
No. A third-party claim is a request for payment made to the other driver’s insurer. A lawsuit is filed in court against the driver. Many injury claims resolve without a lawsuit, but the lawsuit deadline still runs while the claim is open.
Do the 2025 limits apply to my crash?
They apply to the other driver’s policy if it was issued or renewed on or after January 1, 2025. The crash date alone does not answer the question. The policy date does.
When to Call Mines Law Firm
We handle auto accident injury claims, and are accepting clients for those. If you are injured in an auto accident, that is when you should call us at 888-700-0093.
ATTORNEY ADVERTISING. This article is for general information only and is not legal advice. Reading it does not create an attorney-client relationship. Every case depends on its own facts, and prior results do not guarantee a similar outcome. Responsible attorney: Jasmine Mines (State Bar No. 331135), Mines Law Firm, 468 N. Camden Drive, Suite 200, Beverly Hills, CA 90210.