Topic 7 · Insurance and Financial Responsibility
If you want to avoid high out-of-pocket costs in a serious crash, you should:
- Have higher liability limits than the minimum required — correct answer
- Never exchange insurance information
- Drive only at night
Why
The state minimums are low relative to real medical and vehicle costs. Higher limits are what stand between a serious crash and personal liability.
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
- If you have no insurance at the time of an at-fault accident, your driver’s license may be suspended for up to:
- You see emergency flashers ahead on the road. You should:
- Taking photos at the scene of an accident is:
- Which of these is NOT considered ‘proof of financial responsibility’ in California?
- 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: