When is an insurance company liable for an accident?

In California, an insurance company is typically liable for an accident if their insured driver was found to be negligent in causing the accident. Negligence is defined as a failure to exercise the care that a reasonable and prudent person would exercise under the same or similar circumstances. In other words, the insured driver must have acted in a way that is below the accepted standard of care that other drivers would follow. If the insurance company is found to be liable, they will typically compensate the victim for the damages that resulted from the accident. This can include compensation for medical expenses, property damage, lost wages, pain and suffering, and more. It is important to note, however, that liability is determined on a case-by-case basis. Furthermore, even if the insurance company is liable for the accident, there may be a cap on the amount of damages they will pay out. Generally speaking, the insurance company is only liable for the amount of coverage that is provided in their policy. So, if the policy does not cover the full extent of the damages that were incurred, you may have to file a lawsuit in order to receive the proper compensation. Ultimately, the law in California is clear: if an insured driver is found to be negligent in causing an accident, the insurance company is liable for the damages that were caused. However, the amount of compensation they will pay out may be limited, depending on the terms of their policy.

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