Topic 7 · Insurance and Financial Responsibility
Which of the following is NOT an acceptable alternative to an insurance policy in California?
- A surety bond for $75,000 from a licensed company
- A $75,000 cash deposit with DMV
- A letter from your employer — correct answer
Why
California accepts four things: a liability policy, a $75,000 cash deposit with DMV, a DMV self-insurance certificate, or a $75,000 surety bond.
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
- What is the DMV’s role if your insurance lapses?
- If your vehicle registration is suspended for lack of insurance, what can happen if you are caught driving?
- If you’re in an accident with no insurance and the accident is not your fault, what are you limited to recovering?
- Keeping insurance and registration current is:
- If you are at fault in an accident and cause $40,000 damage to someone's car, but only carry the minimum property damage coverage, how much could you be personally responsible for?