Topic 7 · Insurance and Financial Responsibility
What is the best reason for having insurance even above the minimum required?
- It is cheaper than the minimum
- To avoid being personally liable for high costs exceeding policy limits — correct answer
- You can drive faster
Why
The minimums are quickly exhausted by real medical and repair costs, and everything beyond them is your 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’re caught driving without insurance at a checkpoint, what could happen?
- If you’re in a minor crash and police don’t come, what should you do?
- If cost is a barrier, what program may help low-income Californians obtain car insurance?
- If you total a new $40,000 car and only have minimum property damage insurance, how much will your insurance pay?
- If your license was suspended due to an accident with no insurance, how long must you maintain SR-22 if you reinstate after 1 year?
- To reinstate your license after suspension for no insurance, you must usually: