While the vast majority of personal injury claims will be settled out of court and with insurance carriers, that is not always the case. If an insurance carrier denies a fair settlement, victims may need to file a lawsuit against the alleged negligent party to recover the compensation they deserve. However, the California Code of Civil Procedure section 335.1 states that victims have only two years to file a claim in these cases. After the two-year statute of limitations has expired, victims will likely lose the ability to recover any compensation at all.
Please note that, per California Government Code section 911.2, those who have a claim against a government entity in California have just six months to file an injury claim and that those cases operate under a different set of procedural rules.