Section 10. Financial Responsibility, Insurance Requirements, and Collisions

Question 1

True or False

Having proof of financial responsiblity (insurance) when driving is optional.

Answer 1

False

You must always carry proof of insurance when driving. Doing so will ensure financial compensation to both you and other drivers.

Question 2

Insurance Requirements

Answer 2

Your insurance must cover at least:

• $15,000 for a single death or injury.
• $30,000 for death or injury to more than one person.
• $5,000 for property damage.

Question 3

Before you buy insurance, what should you check first?

Answer 3

Make sure the agent, broker, or insurance provider is licensed by the California Department of Insurance.

Question 4

What are the most common causes of collisions?

Answer 4

• Driver distractions.
• Unsafe speed.
• Improper turns.
• Not following the right-of-way rules.
• Not following stop signals and signs.
• Driving on the wrong side of the road.
• A vehicle traveling faster or slower than the flow of traffic.

Question 5

What to Do if You Are in a Collision

Answer 5

• You must stop.
• Call 911 right away if anyone is hurt.
• Move your vehicle out of traffic if no one is hurt. Then call 911.
• Show your driver’s license, vehicle registration card, insurance information, and current address to the other driver, law enforcement officer, and anyone else involved in the collision.
• Make a report to law enforcement within 24 hours if anyone was injured or killed.

Question 6

Reporting a Collision

Answer 6

If you are in a collision, you must report it to DMV within 10 days if:

• The collision caused more than $1,000 in damage to property.
• Anyone was injured or killed. This applies even if the injuries were minor.

NOTE!: Each driver must also file a Report of Traffic Accident Occurring in California (SR 1) with DMV. You must file a report whether or not you caused the collision. Your driving privilege will be suspended if you fail to file a report.

Question 7

Driving Without Insurance

Answer 7

Your driving privilege will be suspended for up to four years if you are in a collision and do not have proper insurance coverage. It does not matter who was at fault.

Question 8

True or False

Collisions will be added to your driver’s record no matter who caused the collision.

Answer 8

True