Topic 7 · Insurance and Financial Responsibility
If you cause an accident and your insurance limits are too low to cover all damages, what could happen?
- You could be sued for the excess amount — correct answer
- Your insurance pays everything, regardless of limits
- The state will pay the remainder
Why
You are personally liable for everything above your limits, which can mean wages and assets, not just savings.
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
- California insurance law is designed to:
- Which of the following is a consequence of driving uninsured in California?
- How soon after an accident must an SR-1 report be filed?
- A police report fulfills the DMV SR-1 reporting requirement. True or False?
- You are in a collision without proper insurance coverage. Your driving privilege:
- You must stop at the scene of an accident you are involved in because: