Topic 7 · Insurance and Financial Responsibility
If you cause an accident and your insurance does not cover all damages, what can the injured party do?
- Request DMV to pay the excess
- Sue you for the remaining amount — correct answer
- Ask your insurance company to increase the payment
Why
They can sue you personally for the difference. Policy limits cap what the insurer pays, not what you owe.
Practise this in the real format
Reading one answer is not the same as sitting the test. The simulator runs the first-time adult form: 36 questions, 6 mistakes allowed, 83% to pass.
Source: California Driver's Handbook (DL 600, rev. 6/2025), the document the DMV writes the real test from. Edited by Fernando Aguilera. Aprobify is not affiliated with the California DMV.
More from Insurance and Financial Responsibility
- What is the penalty for not maintaining SR-22 insurance after a suspension?
- You are in a collision where someone is injured. Besides the DMV report, you must:
- If you hit a parked car and cannot locate the owner, what must you do?
- If the other driver in a crash is uninsured and at fault, what coverage helps you?
- Who takes on financial responsibility for a driver younger than 18?
- If you lend your insured car to a friend, is the car covered?