California Driver’s Handbook

Section 10: Financial Responsibility, Insurance Requirements, and Collisions

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You must have your proof of financial responsibility (insurance) when you drive and for a drive test. If you get into a collision, you must show proof to the other drivers involved in the collision.

Insurance Requirements

Your insurance must cover at least:

Parents or guardians take on financial responsibility for drivers younger than 18 years old and pay for damages if the driver is involved in a collision. Drivers who are 18 years old and older take on their own financial responsibility.

Before you buy insurance, make sure that the agent, broker, or insurance provider is licensed by the California Department of Insurance. For more information, visit insurance.ca.gov/license-status/.

Low-cost Insurance

If you cannot afford liability insurance, you may be eligible for the California Low Cost Automobile Insurance Program. For more information, visit mylowcostauto.com or call 1-866-602-8861.

Collisions

Understand factors that lead to collisions so you can try to avoid them.

Causes of Collisions

The most common causes of collisions are:

If you see a vehicle’s emergency flashers ahead, slow down. There may be a collision or other road emergency. Pass carefully.

Avoid driving near collisions, if possible. If anyone is injured, they will get help faster if other vehicles are not blocking the road.

What to Do if You Are in a Collision

Reporting a Collision

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

Each driver must file a Report of Traffic Accident Occurring in California (SR 1) with DMV at dmv.ca.gov/accidentreport. You (or your representative) must file a report whether or not you caused the collision. This applies even if the collision happened on private property.

Your driving privilege will be suspended if you fail to file a report. Law enforcement will not make a report for you.

Driving Without Insurance

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.

You can get your driver’s license back during the last three years of the suspension if you provide a California Insurance Proof Certificate (SR 22/SR 1P) and maintain it during the three-year period.

Collisions on Your Driver’s Record

If you are involved in a collision resulting in $1,000 in damage, or where anyone is injured or dies, it is your responsibility to report the collision to DMV. DMV will add it to your driver’s record. It does not matter who caused the collision.