You’re sitting at a red light on Market Street, a car clips your bumper, and two weeks later you get a certified letter. The other driver has hired a car accident attorney. Now what?

Most drivers in San Francisco panic when they learn the other party has legal representation. That reaction is understandable, but panic is the wrong response. What you actually need is clarity about what the other person hiring a lawyer means for your legal and financial exposure — and what you should do right now to protect yourself.

This 2026 guide breaks down exactly how liability works in California, what happens once an attorney enters the picture, and why your next move matters more than most people realize.

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What It Means When the Other Party Hires a Car Accident Attorney?

The moment someone retains a car accident lawyer, the case dynamic shifts. Phone calls to your insurance company may stop. Instead, the attorney handles all communication, sends a formal representation letter, and begins building a documented record of damages — medical bills, lost wages, pain and suffering.

This does not automatically mean you are liable for anything. California operates under a comparative fault system, which means liability is divided based on each party’s percentage of fault. Under California Civil Code sections governing pure comparative negligence, a plaintiff can recover damages even if they were partially at fault — but their recovery is reduced by their own percentage of fault. So if the other driver was 20% responsible for the crash, they can only collect 80% of their total damages from you.

The fact that someone hired a lawyer tells you one thing: they believe they have a recoverable claim. It does not tell you they are right.

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How California’s Fault Rules Apply to San Francisco Drivers?

California is an “at-fault” state for car accidents, according to FindLaw’s legal resource library. This means the driver who caused the accident bears financial responsibility for injuries and property damage. Your liability exposure depends on what actually happened — not on who hired a lawyer first or who filed a claim first.

In San Francisco, traffic conditions add layers of complexity. Cyclists on the Wiggle, pedestrians crossing against lights on Mission Street, Muni buses merging without warning — multi-party collisions happen constantly. In those cases, fault is often split across several parties.

Your insurance company assigns an adjuster to investigate and defend you up to your policy limits. But here is where many drivers misunderstand the system: your insurer’s adjuster works to protect the insurer’s financial interest, not necessarily yours. If the damages claimed exceed your policy limits, you could be personally exposed for the difference.

California requires minimum liability coverage of $30,000 per person and $60,000 per accident as of 2026 under the updated minimums that took effect January 1, 2025. If someone’s injuries and losses exceed your coverage, an experienced car accident attorney on their side could pursue your personal assets.

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What Happens After Their Attorney Sends a Demand Letter?

A demand letter is typically the first formal move. The opposing car accident lawyer documents the injuries, medical costs, and other losses, then demands a specific dollar amount to settle. Your insurance company will respond, negotiate, or deny.

Most cases settle during this negotiation phase. According to Justia’s legal information portal, the vast majority of personal injury cases resolve before trial. A settlement means you agree to pay a specific amount in exchange for the injured party releasing all future claims related to the accident.

If negotiations break down, the attorney may file a lawsuit in San Francisco Superior Court. At that point, you will be formally served, and the case enters discovery — where both sides exchange evidence, depose witnesses, and build their arguments.

One critical deadline: California’s statute of limitations for personal injury claims is two years from the date of the accident under California Code of Civil Procedure § 335.1, as confirmed by Cornell Law School’s legal information database. If the other party misses that deadline, their attorney cannot file a valid lawsuit regardless of the merits.

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Why You Should Take Their Attorney Seriously — and Hire Your Own?

Many people assume their insurance policy handles everything and they can stay hands-off. That assumption creates real risk.

Your insurance company can settle a claim without your consent, as long as it stays within your policy limits. That might sound convenient, but a settlement can establish fault on record — which affects your future premiums and, in some cases, your driving record.

If the damages are significant, you need your own California personal injury attorney reviewing the case. An attorney who represents defendants in car accident cases can challenge the other side’s damage calculations, contest the fault assessment, identify whether the injured party contributed to the accident, and push back on inflated medical billing.

The American Bar Association consistently notes that having legal representation changes outcomes in civil litigation. That applies to both sides of a car accident case.

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Situations Where Your Liability Exposure Is Highest

Not all car accidents carry the same financial risk. Here are the situations where you should be most alert in San Francisco specifically:

Serious or permanent injuries. Spinal injuries, traumatic brain injuries, or anything requiring surgery dramatically increases the total damages a plaintiff’s attorney can document and present. Medical costs alone can exceed $500,000 for serious cases.

Accidents involving cyclists or pedestrians. San Francisco has heavy bicycle traffic, particularly in the Mission, the Embarcadero corridor, and along Market Street. California bicycle accident claims often involve significant injuries because cyclists have no physical protection. Courts and juries in San Francisco tend to be sympathetic to vulnerable road users.

Accidents where you were cited at the scene. A traffic citation from SFPD is not a conviction, but it creates a paper record. A car accident attorney on the other side will use it to support their liability argument.

Multi-vehicle collisions. If a chain-reaction crash involves three or more vehicles, fault allocation becomes contested. You might end up with a larger share of liability than you expected.

Rideshare-related crashes. If you were driving for a platform like Uber or Lyft when the accident happened, insurance coverage layers get complicated fast. The platform’s commercial policy, your personal policy, and the injured party’s uninsured motorist coverage can all become relevant.

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What You Should Do Right Now?

If you have been notified that the other driver hired a car accident attorney, take these steps immediately.

First, stop communicating directly with the other party or their lawyer. Direct communication without your own attorney or insurance company’s guidance is a liability trap.

Second, pull together your documentation. Photos from the scene, the police report, your insurance declaration page, any medical records if you were also injured, and witness contact information all matter.

Third, review your policy limits with your insurance agent. If your coverage is close to or below the likely damages in the case, talk to your own attorney before the insurance company negotiates a settlement.

Fourth, do not make statements on social media. Anything you post about the accident can be used in litigation.

Fifth, consult a car accident attorney. Even if you were not injured yourself, getting legal advice from someone who handles these cases in San Francisco courts regularly is worth the time.

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A Note on Being the Injured Party Reading This

If you were hurt in the accident and you are the one considering hiring a car accident lawyer, the same advice applies in reverse. The other driver’s insurance company is not your advocate. An experienced car accident attorney reviews your case, documents your damages properly, and pushes back when adjusters undervalue your claim.

Our firm also handles California motorcycle accident claims, and across all case types, the pattern is consistent: claimants represented by an attorney receive higher settlements on average than those who negotiate directly with insurance companies.

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Talk to a Car Accident Attorney in San Francisco Before You Make Any Decisions

Whether you are the driver who received a demand letter or the person who was hurt, the same rule applies: get information from someone who handles these cases every day before you make any decisions.

Razavi Law Group | Who Hurt You? represents clients throughout California and understands the specific courts, traffic patterns, and insurance dynamics that affect outcomes in San Francisco cases.

Call our team today at (415)-384-5025 to schedule a free consultation. You can also contact us online to get in touch with our team directly. We are located at 71 Stevenson St Suite 400, San Francisco, CA 94105, United States.

The sooner you understand your position, the better your options.

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Written by Ali Razavi. Read more about the author.