Topic 7 · Insurance and Financial Responsibility
What is the DMV’s role if your insurance lapses?
- They will automatically renew your policy
- They will buy you a new policy
- They may suspend your vehicle registration — correct answer
Why
Insurers report lapses to DMV directly, and DMV can suspend the vehicle's registration as a result.
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 your vehicle registration is suspended for lack of insurance, what can happen if you are caught driving?
- Which of the following is NOT an acceptable alternative to an insurance policy in California?
- If you’re in an accident with no insurance and the accident is not your fault, what are you limited to recovering?