Reviewed and updated October 12, 2026 by the SearchSystems.net editorial team. Every fact on this page was read from the California DMV's own pages that day, and the DMV page each fact came from is linked where it appears.
California's financial responsibility law as the DMV applies it: the minimum liability amounts, the four ways to meet the requirement, the electronic reporting by insurers, the registration suspension for a lapse and the $14 reinstatement, the SR 1 accident report and the 10-day rule, and the driver's license suspension after an uninsured accident. Registration itself is on the registration renewal guide; a car taken off the road on the planned nonoperation section of the same guide.
In this guide: The minimums and what counts, How the DMV knows: electronic reporting, A suspended registration and the $14 reinstatement, Reporting an accident: the SR 1, An accident without insurance: the license suspension, Questions about California insurance requirements
The minimums and what counts
Insurance, which the DMV also calls financial responsibility, is required on every vehicle operated or parked on California roads, and evidence of it must be carried in the vehicle and shown to law enforcement on request, at registration renewal, and after a collision, per the DMV's insurance requirements page. The minimum liability coverage under Insurance Code section 11580.1b is $30,000 for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for damage to property; liability insurance pays people other than the policy holder, and comprehensive or collision coverage does not satisfy the law. Four forms of financial responsibility are accepted: a motor vehicle liability policy, a $75,000 cash deposit with the DMV, a DMV-issued self-insurance certificate, and a $75,000 surety bond from a company licensed in California (the DMV Insurance Unit at (916) 657-6677, option 3, handles deposits and self-insurance; the Department of Insurance at 1-800-927-4357 lists bond companies). The DMV's fee calculator page still gives the older minimums of $15,000, $30,000 and $5,000; this page follows the insurance requirements page. The DMV also lists the Low Cost Automobile Insurance Program at mylowcostauto.com or 1-866-602-8861 for drivers who cannot afford a policy.
How the DMV knows: electronic reporting
California insurers are required by Vehicle Code section 16058 to report private-use vehicle insurance to the DMV electronically, and since January 1, 2023 commercial and fleet insurance as well. When the DMV receives no proof of insurance for a vehicle, it suspends the registration, and the vehicle may not be driven or parked on a public road until proof is submitted. The DMV may also ask for an insurance card, a DMV authorization letter for a cash depositor or self-insurer, a California Proof of Insurance Certificate (SR 22), evidence of public entity ownership, or a Statement of Facts (REG 256) for a motor carrier with insurance on file elsewhere. The DMV says to notify it before cancelling a policy: a currently registered vehicle that will not be used can be covered by an Affidavit of Non-Use (REG 5090) filed online, by mail or by phone, after which the insurance may be cancelled, but an affidavit cannot be filed once the registration has expired, and at renewal the owner pays the fees or files planned nonoperation.
A suspended registration and the $14 reinstatement
The DMV's registration suspension page says the Vehicle Registration Financial Responsibility Program suspends a registration when insurance information is not submitted within 30 days of a registration card being issued, when a cancelled policy is not replaced within 45 days, or when false proof was used; the DMV mails a notice asking for proof of insurance and a $14 reinstatement fee. The common causes it names are out-of-state insurance (the card must say California and the company must be licensed in California) and a wrong vehicle identification number entered by the insurer. Reinstatement can be done online with the NAIC and policy numbers, the plate number and the last five characters of the VIN or the PIN from the DMV's letter; by email to VehicleFRProgram@dmv.ca.gov; at a kiosk; by mail to the address on the notice; or through the automated line at 1-800-777-0133. An office or call center cannot clear it. Vehicles on affidavit of non-use or planned nonoperation status are not subject to suspension but cannot be parked or driven on a California road.
Reporting an accident: the SR 1
Vehicle Code section 16000 requires every driver to report an accident to the DMV within 10 days when anyone was injured, no matter how minor the injury, or killed, or when either party's property damage exceeded $1,000; the report, the Report of Traffic Accident Occurring in California (SR 1), is filed online through the DMV's accident reporting page by the driver, an insurance agent or broker, or a legal representative, and is required in addition to any report to the police, the CHP or an insurer. The DMV asks for the driver's license, the plate or VIN, the vehicle's insurance information and the other party's vehicle and insurance details, and says paper submissions take longer. Off-highway accidents involving a vehicle subject to registration must be reported on the same injury, death or $1,000 terms, except an accident on private property that damaged only the driver's own property with no injury.
An accident without insurance: the license suspension
The DMV's financial responsibility page explains the action under Vehicle Code section 16070 against a driver or owner who cannot show that financial responsibility was in effect for a reportable accident. Fault is not the issue; the DMV says the hearing considers only whether the person was the driver or owner, whether there was injury, death or damage over $1,000, and whether an accepted form of financial responsibility was in effect. The suspension is a minimum of one year, after which proof of insurance must be kept on file with the DMV for three years. A hearing must be requested in writing to Driver Safety Headquarters within 10 days of the notice or the right is waived; a timely request does not stay the suspension by itself, but the law requires a stay if the DMV cannot hold the hearing and decide within 30 days of mailing the order. Instead of the suspension a driver may apply for a restricted license, unless another suspension is in effect, and a person who must drive for work may apply for a course of employment exemption that allows driving an employer's vehicle on the job but not to and from work. The registered owner is suspended when the driver cannot be identified, as in a hit and run with no identified driver, or when the vehicle was a driverless runaway. The DMV also sells copies of SR 1 reports and financial responsibility information to people involved in an accident, on form SR 19C with $20.
Questions about California insurance requirements
What are the minimum insurance amounts in California?
$30,000 for injury or death to one person, $60,000 for injury or death to more than one person, and $15,000 for property damage, under Insurance Code section 11580.1b on the DMV's insurance requirements page. The DMV's fee calculator page still shows the older $15,000, $30,000 and $5,000 figures.
What counts besides an insurance policy?
A $75,000 cash deposit with the DMV, a DMV self-insurance certificate, or a $75,000 surety bond from a company licensed in California. Comprehensive or collision coverage does not meet the requirement.
When must I report an accident to the DMV?
Within 10 days, on an SR 1, whenever anyone was injured however slightly or killed, or property damage exceeded $1,000, in addition to any police or insurance report. Certain off-highway accidents must be reported on the same terms.
My registration was suspended for no insurance. How do I clear it?
Submit California proof of insurance and the $14 reinstatement fee online, by email to VehicleFRProgram@dmv.ca.gov, at a kiosk, by mail or by phone at 1-800-777-0133; the DMV says an office or call center cannot clear the suspension.
Can I cancel insurance on a car I am not driving?
Only after filing an Affidavit of Non-Use (REG 5090) with the DMV, and only while the registration is current; when renewal comes due the car must be insured again or placed on planned nonoperation.
What if I cannot afford insurance?
The DMV points to the California Low Cost Automobile Insurance Program at mylowcostauto.com or 1-866-602-8861.
Written by SearchSystems.net from the California DMV's insurance requirements, registration suspension, financial responsibility, accident reporting and fee calculator pages, read on October 12, 2026. Where two DMV pages give different minimums, both are stated and the insurance requirements page is followed.