Legal Question in Insurance Law in California

He has the legal minimum insurance. So yes he can do it. You have the right, however, to make a claim against your own insurance for the difference. You may or may not have coverage. If you don't have coverage for un or under insured drivers, you can sue him personally for the difference. You can sue in small claims for $7,500, so you'd be out $1,500 net. Or you can sue in regular Superior Court, Limited Jurisdiction, for the total amount, including loss of use. So you get your rental car paid for until you replace our car too (as long as your rental is comparable to the damaged car).