This chapter covers how you prove you can financially cover damage or injury you might cause while driving — usually through liability insurance — and what you must do if you're ever in a collision, from stopping and exchanging information to reporting it to the DMV.
The most-tested ideas are: you must carry proof of financial responsibility at all times and show it in specific situations (police stop, registration renewal, after a collision); driving without proper coverage carries serious license consequences; and there's a separate DMV collision report (distinct from any police report) required when a collision crosses a certain injury or damage threshold.
A common mistake is confusing the DMV collision report with a police report — they are separate obligations, and you may need to file the DMV report even if police were never involved. Another is assuming that leaving the scene is only a problem if you caused the collision; failing to stop and fulfill your duties is treated as hit-and-run regardless of fault, and carries much harsher consequences than the underlying collision.
What counts as proof of financial responsibility?⌄
Most drivers use a motor-vehicle liability insurance policy, but California also allows an approved cash deposit, a DMV self-insurance certificate, or a surety bond as alternatives — the point is proving you can cover damages, not the specific method.
Do I need to report every collision to the DMV?⌄
Only if it crosses the threshold for property damage or involves any injury or death, however minor — check the specific dollar and reporting-window rules in the chapter, since both drivers must file regardless of who was at fault.
What should I do immediately after a collision?⌄
Stop, call for emergency help if anyone is hurt, move your vehicle out of traffic if it's safe, and exchange license, registration, and insurance information with the other party — never drive away, since that turns a collision into a much more serious hit-and-run.