Topic 7 · Insurance and Financial Responsibility
What is the primary reason California requires liability insurance for drivers?
- To ensure drivers can pay for harm they cause in accidents — correct answer
- To provide discounts on car repairs
- To increase car insurance company profits
Why
So that a driver who causes harm can actually pay for it, rather than leaving the injured party with nothing. (Handbook, Section 10.)
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 someone is injured or killed in an accident, you must:
- You roll into a parked car and cannot find the owner. You must:
- You must report a collision to the DMV within 10 days if:
- If you cause an accident with no insurance, to reinstate your license after 1 year you must:
- In California, who can legally help file the SR-1 if you are injured?
- If you fail to file an SR-1 accident report with the DMV when required, what may happen?