Drive Responsibly � Drive Safely

DEPARTMENT OF MOTOR VEHICLES

The purpose of the Compulsory Financial Responsibility Law (��1 6000-16078 VC) is to ensure that drivers and owners of vehicles are financially responsible for any damage or injury caused by a traffic accident, regardless of fault, and to remove financially irresponsible drivers from the highways.

If you drive a motor vehicle, whether you own it or not, or if you own a motor vehicle, even though you may not drive it yourself but allow others to drive it, you must maintain in force one of the forms of financial responsibility specified by law. The usual method of financial responsibility is liability insurance, but a surety bond or a cash deposit of $35,000 made with the department are acceptable alternatives (��16056 and 16054.2 VC).

OBLIGATIONS AFTER AN ACCIDENT

If you were the driver or owner of a motor vehicle involved in an accident which resulted in property damage in excess of $500, bodily injury or death, regardless of who was at fault, you must report the accident and provide evidence of financial responsibility to the Department of Motor Vehicles. The report must be made on the Traffic Accident Report form (SR-i) and the report is due within 10 days of the accident. This is in addition to any other report made to the police, California Highway Patrol, or your insurance company. To meet the financial responsibility requirements, your automobile liability insurance must provide at least the minimum coverage: $15,000 for a single injury or death; $30,000 for injury to, or death of, more than one person; and $5,000 for property damage, in any one accident.

Note: You must have liability insurance covering damage to the person or property of others. Comprehensive or collision coverage is only for damage to your vehicle, and does not meet the legal requirement. "Full coverage� may only cover your damages. Check your policy, or talk to your agent or broker, to be sure that you do have the liability coverage required by law.

If you do not report the accident to the department as required by this law, or if you do not provide evidence of financial responsibility in effect at the time of the accident, your driving privilege will be suspended.

If you are involved in a reportable accident while driving your employer�s vehicle, you must report the accident to your employer within 5 days. Your employer is then required to file a Traffic Accident Report (form SR-i) with the department within 10 days of your report. The employer�s report is not needed if the vehicle is owned or operated by a government agency, a department-approved self-insurer, or the holder of a department-issued Employer Insurance Certificate.

If you receive a Courtesy Reminder or an Order of Suspension under the Financial Responsibility Law and you were insured or covered by a surety bond for the vehicle involved in the accident, you should immediately provide your coverage information to the Department of Motor Vehicles. If the information is acceptable, no action will be taken or the suspension will be ended. When calling the department, please have all accident and insurance information at hand.

If you were uninsured, your driving privilege will be suspended. You will not be eligible for reinstatement until one year from the date the suspension begins. Thereafter, for a period of three years, proof of financial responsibility is required as a condition of reinstatement. If proof is canceled for any reason during the three-year proof requirement, your driving privilege will be suspended, effective upon notice. If you change insurance companies, be certain your new proof is on file before canceling the old policy.

If you were not insured at the time of the accident and your employment requires driving, you may legally drive your employer�s vehicles during the course of your employment if the vehicles are not registered in your name (�16073 VC)

If a vehicle is involved in an accident and the driver of the vehicle cannot be identified, any required suspension will be taken against the registered owner. If the owner adequately identifies the driver, the suspension will be removed from the owner and placed against the driver (��16020-21 and 16070a VC). If a parked vehicle rolls away and causes an accident, the registered owner is subject to suspension if the vehicle is uninsured (�16001 VC).

OFF-HIGHWAY ACCIDENTS

Accidents which occur off a street or highway are also required to be reported if injury, death or more than $500 in property damage results. This includes parking lot accidents and those occurring in any area open to the general public. A report is not required if the vehicle involved is not required to be registered (e.g., a snowmobile or agricultural vehicle) or if there was no injury or death and the accident occurred on the driver�s/owner�s own property and involved only property belonging to the driver/owner (��16000 and 16000.1 VC).

HEARING

If you receive an Order of Suspension, you may request a hearing to decide whether the law applies, including whether:

1. You were involved in the accident as a driver or owner;
2. The accident resulted in injury, death or property damage in excess of $500;
3. Financial responsibility was in effect for the accident.

The department does not determine fault or enter into disputes over claim settlements. (Only courts can make a decision concerning liability.)

The Driver Safety Officer cannot consider how the accident occurred, the cause of the accident, fault, your need for a license, or why you were uninsured.

UNSATISFIED JUDGMENT

If you fail to satisfy a civil judgment rendered against you for an accident, you could be subject to suspension under the Unsatisfied Judgment Law (��16370 and 16370.5 VC).

Copies of the Vehicle Code are available at offices of the Department of Motor Vehicles for a fee of $3.00; or you may inspect a copy at any office of the department, the California Highway Patrol, or a public library.

NEW LAWS REGARDING FINANCIAL RESPONSIBILITY

Laws enacted in 1996 by the Legislature and the Governor provide additional methods for enforcement of the Financial Responsibility Law, and make technical changes to accident reporting provisions and the requirements for filing insurance proof certificates:

� All vehicle owners are required to show evidence of financial responsibility for their vehicle at the time of registration renewal.

� Drivers stopped for a traffic violation or involved in an accident must show written evidence of financial responsibility upon the request of a peace officer. Failure to provide valid evidence to the officer is grounds for a citation, and if convicted of the violation a fine of not less than $500 is required bylaw. A peace officer is prohibited from stopping a vehicle solely to request evidence of financial responsibility.

� No action can be taken against any involved uninsured drivers based on a report received more than 1 year after the accident. Also, the department is not required to file a traffic accident report received more than 1 year after the accident.

� Nonresidents whose California driving privilege is suspended or revoked, but who can be reinstated by filing an Insurance Proof Certificate, may file an insurance certificate valid in their state of residence if it is otherwise acceptable to the California Department of Motor Vehicles. During the mandatory one-year suspension, you may apply for one or more of the following restrictions:

1. A restricted license for driving to and from, and during the course of, your primary employment.
2. A restricted license for driving yourself or an immediate family member to and from medical treatments for a serious medical condition.
3. A restricted license for driving a minor dependent to and from school (K-12) when no other transportation is available.

The restrictions require proof of financial responsibility (see Proof Filing Information below), payment of a single penalty fee of $250 and, if needed, a $55 reissue fee. (The $55 fee is not required if all requirements for a restricted license are met by the suspension date.) An application form must be completed and approved by the department.

After one year the restriction(s) will end. You may apply for a duplicate license if you desire a license without restriction notation(s). If your proof of financial responsibility is canceled for any reason during the proof requirement period, your driving privilege will be suspended until acceptable proof is again filed

The usual method of showing proof of financial responsibility is to provide a California Insurance Proof Certificate (form SR-22/SR-1 P) from an insurance company authorized to do business in California. The types of coverage on the form SR-22/SR-1 P are listed below:

SR-22: A motor vehicle liability policy may be provided to cover only vehicles registered in your name (owner�s policy), only vehicles you do not own (operator�s policy), or all vehicles whether you own them or not (broad coverage). This certificate is acceptable for any DMV actions requiring proof of financial responsibility.

SR-i P: An automobile liability policy or a liability policy for vehicles with fewer than four wheels. This certificate is acceptable after an accident without insurance, for negligent operator sanctions per �12810.5 VC, for an application by a minor requiring proof (�17705 VC), or for a nonresident minor�s certificate (�12504 VC).

To obtain a California Insurance Proof Certificate, contact an insurance agent or broker. Do not submit a copy of your policy or your insurance application, as it cannot be accepted in place of the California Insurance Proof Certificate. If necessary, persons unable to obtain this insurance coverage through their regular insurance company may have any insurance agent or broker make an application to the California Automobile Assigned Risk Plan. The plan may be contacted directly for information at:

California Automobile  Assigned Risk Plan 
P 0 Box  7917
San Francisco CA 94120-7917
1-800-622-0954

Proof of financial responsibility may be met by making a $35,000 cash deposit with the department or by filing a $35,000 surety bond. Proof may also be filed by a department-approved self-insurer on behalf of an employee, to permit driving vehicles owned by the self-insurer within the scope of the person�s employment. A bond must be obtained from a surety company authorized to do business in California. For information on cash deposits or self-insurance, you may call (916) 657-6677, or write to:

Department of Motor Vehicles
Financial Responsibility Area
P. 0. Box 942884 Mail Station  J237 Sacramento, CA 94284-0884