California · Handbook chapter 10 · 4 min read

Chapter 10: Insurance, collisions and registration

California's minimum insurance amounts, what happens if you drive uninsured, the most common causes of collisions, what to do at the scene, when to report a crash to police and the DMV, and the deadlines for registering, buying and selling a vehicle.

Why this chapter matters

The knowledge test regularly asks for the minimum insurance amounts and the reporting deadlines after a collision. They are simple numbers, but easy to mix up: 24 hours for police, 10 days for the DMV.

Financial responsibility

You must carry proof of insurance whenever you drive, including for the drive test, and show it to the other drivers if you are in a collision.

Minimum insurance

• For drivers under 18, parents or guardians take on financial responsibility and pay for damages. From 18, you are responsible yourself.
• Buy only from an agent, broker or insurer licensed by the California Department of Insurance.
• If you cannot afford liability cover, you may qualify for the California Low Cost Automobile Insurance Program.

Driving without insurance

If you are in a collision without proper insurance, your license can be suspended for up to four years, no matter who caused the crash. You can get it back for the last three years of the suspension if you file an SR 22/SR 1P insurance certificate and keep it in force for those three years.

Why collisions happen

The most common causes are:

• Driver distractions.
• Unsafe speed.
• Improper turns.
• Ignoring right-of-way rules.
• Ignoring stop signals and signs.
• Driving on the wrong side of the road.
• Driving faster or slower than the flow of traffic.

If you see emergency flashers ahead, slow down and pass with care. Avoid driving near a crash scene: injured people get help faster when the road is clear.

If you are in a collision

• You must stop. Leaving the scene is a hit-and-run, and the penalties are severe.
• Call 911 at once if anyone is hurt.
• If no one is hurt, move your vehicle out of traffic, then call 911.
• Show your license, registration card, insurance information and current address to the other driver, the police and anyone else involved.
• If anyone is injured or killed, a report must be made to law enforcement within 24 hours. Your insurance agent, broker or legal representative can make it for you.
• If you hit a parked car or other property and cannot find the owner, leave a note with your name, phone number and address, attach it securely, and report the collision to the police.
• If you injure or kill an animal, call the nearest humane society or the police. Do not try to move an injured animal.

Reporting to the DMV

You must report a collision to the DMV within 10 days if:

• It caused more than $1,000 of property damage, or
• Anyone was injured or killed, even slightly.

Each driver files a Report of Traffic Accident Occurring in California (SR 1), whether or not they were at fault and even if the crash happened on private property. The police will not file it for you, and your license will be suspended if you fail to report. Reported collisions go on your driving record regardless of who caused them.

Vehicle registration

• Any vehicle you use in California must be registered in California.
• Buying: transfer ownership into your name within 10 days.
• Selling: tell the DMV within five days by filing a Notice of Transfer and Release of Liability.
• Moving to California: register your vehicle within 20 days of becoming a resident or getting a job here. It must meet California requirements, including emission controls.