What this means is that you (or your attorney) must file a lawsuit against a defendant within two years of the date of your accident. If you do not file a lawsuit within two years, generally you forfeit any potential claim against the defendant as a matter of law - meaning there will be no opportunity for a settlement, arbitration or trial (with some exceptions).
Disclaimer: Although the information presented on this page is generally true there are some exceptions to this information, and the California Statute of Limitations (and the exceptions) may change over time. If you or a family member was involved in an accident and considering seeking compensation for your injuries it is crucial that you speak to a California personal injury lawyer to discuss your claim and potential recovery. Do not delay.
There are some variations & exceptions to the 2 year statute of limitations on personal injury cases in California. But no matter what is said here, it is critical you discuss your matter with a lawyer who is highly experienced in personal injury law immediately.
If you miss the deadline to file a lawsuit and the California statute of limitations passes (barring any exceptions), the opposing party will almost surely move for case dismissal and it will likely be granted. This also means that nearly any hope of a settlement will also be forfeited because there is no leverage to potentially pursue a trial (since it would immediately be dismissed).