Imagine your day upended by a crash on a busy stretch of road. A driver runs a red light and hits the side of your car hard enough to leave you shaken and hurting. The paramedics recommend getting checked out, and later that week your doctor confirms you may need follow-up care. You start thinking about medical expenses, lost wages, and what to do if the insurance company pushes back.
People in your circle mean well, but the same concern keeps coming up: if you sue for your injuries, your own premiums might jump. It feels like a real risk when a crash has already added stress and uncertainty.
The good news is that California law treats this differently than many assume. Knowing how the system works can help you protect yourself without worrying about being penalized for doing so.
The Truth About Premium Increases After a Lawsuit
Many drivers worry that taking legal action after a crash will trigger a higher premium, especially when insurance already feels unpredictable.
In California, the rules are much more defined than most people realize. Filing a lawsuit is not one of the rating factors that insurers are allowed to use under California Code of Regulations, Title 10, § 2632.5.
This regulation limits insurers to specific, approved factors when setting or adjusting auto premiums, and “pursuing legal action” is not included. A lawsuit does not change your driving safety record, and it cannot be used as a basis for a rate increase.
How Fault Fits Into Premium Increases
What can affect your premium is a determination that you were “principally at fault” for the crash.
Under Title 10 of the California Code of Regulations, an insurer may only treat a collision as chargeable when the driver was at least 51 percent responsible. If the investigation shows you were not responsible to that degree, the accident cannot be counted against you during renewal.
California separates fault from the steps an injured person takes to recover their losses. Filing a claim, negotiating with the insurer, or pursuing a lawsuit does not give the company grounds to surcharge a policy when the driver is not at fault.
The bottom line: If you were not primarily at fault, the accident cannot legally be used to surcharge your policy, regardless of whether you file a claim or a lawsuit. Rates can still rise for many unrelated reasons—market conditions, insurer-wide adjustments, or changes in your coverage—but a non-fault crash is not the cause in those situations.
How Tort Reform and “Frivolous Lawsuit” Narratives Shape This Myth
So where has this myth stemmed from?
Part of the confusion around premiums comes from how lawsuits are discussed in the broader public conversation. For years, large insurance companies and industry groups have pushed messages about tort reform, often claiming that injury lawsuits drive up costs for everyone.
These campaigns are usually framed around the idea of reducing frivolous lawsuits, but they also tend to create the impression that any injured person who pursues a claim is contributing to a larger problem.
That messaging affects how people think about their own situation after a crash. When someone hears repeated warnings about lawsuits raising costs, it is easy to assume that filing one could raise their personal premiums too.
How Auto Insurance Premiums Are Calculated in California
Premiums in California are governed by state rules that limit what insurers can use when deciding what someone pays. The goal is to keep the process predictable and tied to measurable risk, not guesswork or vague assumptions.
Some of the main factors include:
- Your driving history: Tickets, past collisions you caused, and other violations can influence your rate.
- Years of experience: Newer drivers often see higher auto insurance premiums.
- Your annual mileage: More time on the road means more exposure to potential accidents.
- Type of vehicle: Repair costs, safety ratings, and theft statistics all play a role.
- Vehicle use: A car driven mainly for commuting or business may carry different risk patterns than one used mostly for personal errands.
These rules make sure insurers base rates on real driving risk, not on what an injured person does to recover their losses.
How a Personal Injury Case Can Protect You
After a serious crash, the costs add up faster than most people expect. Property damage, medical expenses, lost wages, and long-term pain and suffering can leave you with bills that far exceed what an insurer first offers. A lawsuit is simply a tool that helps you close that gap when the insurance company is unwilling to cover the full extent of your losses.
Taking legal action also prevents the insurer from controlling the narrative. Without a lawsuit, insurance companies decide what your injuries are worth. With one, you gain access to evidence, expert evaluations, and a process that holds the at-fault party accountable. It creates structure around your claim and gives you a way to challenge an unfair settlement.
Filing suit does not guarantee a trial. Many cases resolve through negotiation once the insurer sees that you are serious about pursuing full compensation. The lawsuit keeps your rights intact during that process and protects you from being pressured into accepting less than what you need to move forward.
Setting the Record Straight
Accidents create enough stress without added worry about what might happen to your insurance premiums. When questions about fault or insurance feel overwhelming, having a knowledgeable expert guide you through the process can make a real difference.
Sepulveda Sanchez Accident Lawyers helps injured people understand their rights and push back when an insurer falls short. If you have concerns about your claim or your next steps, scheduling a free consultation can provide clarity and help you protect what matters most.