California’s Financial Responsibility Laws

If a person is convicted of a DUI, or suffers an administrative suspension subsequent to an Administrative Per Se Hearing before the California Department of Motor Vehicles, he/she will need to file proof of financial responsibility with the California Department of Motor Vehicles.  The proof of financial responsibility will need to remain on file with the California Department of Motor Vehicles typically for a period of three years, and a failure to do so will result in the immediate suspension of one’s driver’s license.  A suspension imposed out of the State of California for failure to maintain proof of financial responsibility can also result in a suspension of a person’s driver’s license in another state as well. 

When proof of financial responsibility is required, the person for whom it is required, must at all times carry, in the vehicle being driven, written evidence of one of the following types of financial responsibility:

• A valid liability insurance policy, for damage to someone else’s property or person (SR-22);
• A $35,000 surety bond;
• A DMV issued self-insurance certificate;
• An acknowledgement by the DMV of a $35,000 cash deposit

Said persons must show this written evidence to a peace officer upon request, and also to any other driver and/or property owner following a traffic accident.

Additionally, any person, whether subjected to the above requirements or not, must file DMV’s Traffic Accident Report Form (SR-1) within 10-days of any accident, if there is over $750.00 damage to anyone’s property, any injury, or death, regardless of whether or not you are at fault in the accident.

The SR-1 must be filed with the DMV.  An insurance agent/broker or other legal representative cannot file the report on another’s behalf.  Moreover, a traffic collision report and/or police report does not satisfy this legal requirement, but a person involved in an accident may include a copy of any such reports with the completed SR-1 filing.

A person who fails to file an SR-1 will have their driver’s license suspended until the SR-1 is filed.  The SR-1 Form is available at all DMV and California Highway Patrol (CHP) Offices throughout the State.  It is also available for download on the DMV’s website at: www.dmv.ca.gov.