Many people assume that if another driver causes a crash, that driver’s insurance pays for everything. In California, that is not true for a person who was driving without insurance. The law cuts off a large part of what an uninsured driver can recover, even when the other driver was completely at fault. This article explains the rule, the exceptions the courts have recognized, and what changed in 2025.
What is the rule for uninsured drivers?
California voters approved Proposition 213, the Personal Responsibility Act of 1996, in November 1996. It added section 3333.4 to the Civil Code. In any case for damages arising out of the operation or use of a motor vehicle, a person cannot recover “non-economic losses” if any of these was true at the time of the accident:
- The injured person was driving under the influence and was later convicted of that offense.
- The injured person owned a vehicle involved in the accident, and it was not insured as the financial responsibility laws require.
- The injured person was driving a vehicle involved in the accident and cannot show the financial responsibility the law requires.
Non-economic losses are harms without a receipt: pain, suffering, inconvenience, physical impairment, disfigurement and similar losses. For a serious injury, they are often the largest part of the claim. Economic losses are still recoverable. That means medical bills, lost wages, lost earning ability and repair costs.
The rule reaches insurers too. A liability or uninsured motorist policy does not have to pay the non-economic losses of a person the statute covers (Civ. Code, § 3333.4, subd. (b)).
The goal is to keep drivers who pay nothing into the insurance system from collecting the same damages as those who do.
What counts as “operation or use” of a vehicle?
More than driving. Courts read these words broadly.
- In Cabral v. Los Angeles County Metropolitan Transportation Authority (1998) 66 Cal.App.4th 907, an uninsured man had legally parked on Olympic Boulevard. As he got out, a bus hit his open door. The court held that opening a door to get in or out is part of operating the car, so his damages were limited to economic losses.
- In Chude v. Jack in the Box Inc. (2010) 185 Cal.App.4th 37, an uninsured driver was burned when coffee spilled into her lap at a drive-through window. Her engine was running and her foot was on the brake. The court held her injury arose from operating the vehicle and barred her non-economic damages.
The statute also does not depend on who the defendant is. In Allen v. Sully-Miller Contracting Co. (2002) 28 Cal.4th 222, an uninsured motorcyclist crashed on a raised concrete edge left in a construction zone. The Supreme Court held that section 3333.4 barred his non-economic damages against the construction contractor.
What are the exceptions?
Passengers
The statute covers the uninsured owner and the uninsured driver. It does not list passengers. A passenger in an uninsured car who is hurt by someone else’s carelessness can usually make a full claim, including pain and suffering.
Wrongful death claims by family
In Horwich v. Superior Court (1999) 21 Cal.4th 272, a woman was killed while driving without insurance. Her parents sued the other driver for wrongful death. The Supreme Court held that section 3333.4 did not stop them from recovering for the loss of her care, comfort and society. The parents were not the uninsured owner or driver. Note that this protects the family’s own wrongful death claim. It does not undo the limit on the uninsured driver’s own damages.
Product defects
In Hodges v. Superior Court (1999) 21 Cal.4th 109, an uninsured driver’s borrowed 1967 Ford Mustang stalled on the freeway and was rear-ended. The gas tank ruptured and he was badly burned. The Supreme Court held that “a products liability claim against an automobile manufacturer falls outside the scope of Civil Code section 3333.4.” See our page on product liability.
Employees driving an employer’s vehicle
In Montes v. Gibbens (1999) 71 Cal.App.4th 982, a worker was hurt while driving his employer’s uninsured vehicle on the job. The court held section 3333.4 did not apply, because the financial responsibility laws did not require that employee to show his own coverage in that situation. Who owned the car, and who was required to insure it, can change the result.
A drunk driver who is convicted
If an uninsured vehicle owner is hurt by a driver who was under the influence and is convicted of that offense, the owner is not barred from recovering non-economic losses (Civ. Code, § 3333.4, subd. (c)). The text of this exception refers to the uninsured owner category. If you were driving someone else’s uninsured car, get advice on how it applies to you. See our page for drunk driver victims.
Minimum insurance limits: where things stand in 2026
For decades, California’s minimum liability coverage was $15,000 per person, $30,000 per accident and $5,000 for property damage. Senate Bill 1107 (Chapter 717, Statutes of 2022), signed September 28, 2022, changed that in two steps:
- Since January 1, 2025: $30,000 per person, $60,000 per accident for bodily injury or death, and $15,000 for property damage.
- Starting January 1, 2035: $50,000 per person, $100,000 per accident and $25,000 for property damage.
Even the new minimums are low next to the cost of a serious injury. That is why your own uninsured and underinsured motorist coverage matters, and why many drivers buy higher limits or an umbrella policy.
The Low Cost Auto program
Drivers who cannot afford a standard policy may qualify for the California Low Cost Automobile Insurance Program. According to the Department of Insurance, its basic policy provides $10,000 per person and $20,000 per accident for bodily injury or death, and $3,000 for property damage. Those limits did not change when the general minimums went up in 2025. The Department says the policy meets the state’s financial responsibility laws. To qualify, household income generally cannot exceed 250 percent of the federal poverty level, and the vehicle must be worth $25,000 or less. AB 917 (Chapter 350, Statutes of 2023) made the program permanent. Details are at mylowcostauto.com.
If an uninsured driver hit you
This is a different situation. If you had insurance and the at-fault driver did not, section 3333.4 does not limit your damages. You can sue the uninsured driver, but collecting is often hard. Your own uninsured motorist coverage is usually the real source of payment. Your own insurer is not on your side in that claim.
What to do
- Get medical care and keep every bill and record. Economic damages are still on the table.
- Don’t assume the worst. Passengers, family members, product defect claims and employer vehicles can all fall outside the rule.
- Don’t give a recorded statement to any insurer, including your own, before you get advice.
- Get insured. If cost is the problem, check whether you qualify for Low Cost Auto.
TORKLAW handles car accident and wrongful death cases throughout California. For how policy limits shape a settlement, see our article on policy-limit demands.
Frequently asked questions
Can I sue if I was uninsured and the other driver was at fault?
Yes. You can generally recover economic losses such as medical bills, lost wages and property damage. Section 3333.4 usually bars pain and suffering, with the exceptions described above.
Does the rule apply to passengers in an uninsured car?
No. The statute covers the uninsured owner and driver. Passengers can usually recover both economic and non-economic damages.
What are California’s minimum insurance limits now?
Since January 1, 2025: $30,000 per person, $60,000 per accident and $15,000 for property damage. They rise to $50,000, $100,000 and $25,000 on January 1, 2035.