Insurance, collisions and paperwork deadlines

Key points

1. Your insurance must cover at least $30,000 for one death or injury, $60,000 for more than one person and $15,000 for property.

   Source: Handbook p. 76

   “$30,000 for a single death or injury. • $60,000 for death or injury to more than one person. • $15,000 for property damage.”
   California Driver's Handbook, Handbook p. 76

2. If you have a collision without proper insurance, your license can be suspended for up to four years.

   Source: Handbook p. 76

   “Your driving privilege will be suspended for up to four years if you are in a collision and do not have proper insurance coverage.”
   California Driver's Handbook, Handbook p. 76

3. After any collision you must stop. Someone could be injured and need your help.

   Source: Handbook p. 77

   “If you are in a collision: • You must stop. Someone could be injured and need your help.”
   California Driver's Handbook, Handbook p. 77

4. Call 911 right away if anyone is hurt.

   Source: Handbook p. 77

   “Call 911 right away if anyone is hurt.”
   California Driver's Handbook, Handbook p. 77

5. Report to law enforcement within 24 hours if anyone is injured or killed.

   Source: Handbook p. 77

   “You must make a report to law enforcement within 24 hours of the collision if anyone is injured or killed.”
   California Driver's Handbook, Handbook p. 77

6. Report a collision to DMV within 10 days if it caused more than $1,000 in property damage.

   Source: Handbook p. 78

   “you must report it to DMV within 10 days if: • The collision caused more than $1,000 in damage to property.”
   California Driver's Handbook, Handbook p. 78

7. You must file the report whether or not you caused the collision, even if it happened on private property.

   Source: Handbook p. 78

   “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.”
   California Driver's Handbook, Handbook p. 78

8. If you move, notify DMV of your new address within ten days.

   Source: Handbook p. 8

   “If you move, you must notify DMV of your new address within ten days.”
   California Driver's Handbook, Handbook p. 8

9. When you buy a vehicle you have 10 days to transfer ownership, and when you sell one you must notify DMV within five days.

   Source: Handbook p. 79

   “When you buy a vehicle, you have 10 days to transfer ownership to your name. When you sell a vehicle, you must notify DMV within five days”
   California Driver's Handbook, Handbook p. 79

10. New residents have 20 days to register an out-of-state vehicle.

    Source: Handbook p. 79

    “You have 20 days to register your vehicle after you become a resident or get a job in California.”
    California Driver's Handbook, Handbook p. 79

Numbers to know

3 questions from the California practice test

1. 1. When must a collision be reported to DMV within 10 days?

   1. When property damage is more than $1,000 or anyone is injured or killed
   2. Only when a driver is cited at the scene
   3. Only when damage is more than $5,000
   4. When police decide not to write a report
   Show answer

   When property damage is more than $1,000 or anyone is injured or killed. A DMV collision report is required within 10 days when property damage exceeds $1,000 or when anyone is injured or killed, even for minor injuries. Waiting for a citation is wrong because fault or enforcement action is not the trigger. The cue is the damage amount or injury outcome. Each driver must file the SR 1 or have a representative file it, even if the crash happened on private property.

2. 2. You are in a collision and do not have proper insurance coverage. What happens to your driving privilege?

   1. Nothing, provided the other driver caused the collision
   2. It can be suspended for up to four years, whoever was at fault
   3. It is suspended only if you are found at fault
   4. It is suspended for thirty days and then restored
   Show answer

   It can be suspended for up to four years, whoever was at fault. California suspends the driving privilege for up to four years when a driver is in a collision without proper insurance coverage, and the handbook is explicit that fault does not matter. Being the blameless party is no protection, which is what makes this rule catch people out. There is a route back: during the last three years of the suspension you can recover your licence by filing a California Insurance Proof Certificate, the SR 22 or SR 1P, and keeping coverage in force. Carry proof of financial responsibility whenever you drive.

3. 3. What minimum liability insurance must California drivers carry for property damage?

   1. $5,000 for property damage
   2. $15,000 for property damage
   3. $10,000 for property damage
   4. $30,000 for property damage
   Show answer

   $15,000 for property damage. California minimum liability coverage includes at least $15,000 for property damage. The $30,000 figure is used for a single death or injury, so it is the wrong number for property damage. Keep the categories separate: bodily injury limits are listed by people injured, while property damage covers damage to vehicles or other property. A cue is the smallest dollar amount in the handbook's three insurance bullets.

Source: the California Driver's Handbook, Section 10: Financial Responsibility, Insurance Requirements, and Collisions. This lesson is a plain English summary, not the law itself; where it differs, the manual and the statute govern. Last checked 2026-09-27.