Causes of Auto Accidents | Safe Driving Course for Teens | My California Permit
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9. Auto Accidents: Causes & Prevention

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26. Insurance

In California, drivers must maintain financial responsibility to cover injuries and damages from accidents. You can fulfill this requirement in one of four ways:

  1. Motor Vehicle Liability Insurance: Provides coverage for damages and injuries caused by your vehicle.
  2. $75,000 Deposit with the DMV: A cash deposit to cover potential damages.
  3. Surety Bond: A $75,000 bond from a licensed company.
  4. Self-Insurance Certificate: Issued by the DMV for those who can prove they have sufficient financial resources.

Types of Insurance

  • Collision Insurance: Covers damage to your vehicle from a collision. Subject to a deductible.
  • Comprehensive Insurance: Covers non-collision damage, such as theft or natural events. Also subject to a deductible.
  • Liability Insurance: Covers injuries and damages you cause to others. Required by law.
    Minimum Liability limits increased on January 1, 2025 as follows:
    - Bodily Injury/Death one person: $30,000
    - Bodily Injury/Death more than one person: $60,000
    - Property Damage per accident: $15,000

  • Uninsured Motorist Insurance: Covers medical expenses if you're in an accident caused by an uninsured driver.

Always carry proof of insurance and ensure that the insurance provider is licensed by the California Department of Insurance. Call 1-800-927-4357 (HELP) to verify license status.


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Lesson Summary


  

Lesson 9 Quiz


You will now answer 5 questions to test what you learned during this lesson. You must answer all questions correctly to receive completion credit for this lesson. You may answer the questions as many times as necessary to get them right.

You should review the lesson material if you don't do well on the quiz.

  1. If you are distracted for one second, by a cell phone, passenger, or other distraction, at 30 mph you will travel how far "blindly"?


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  2. If you have a tire blowout:


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  3. Teenage drivers have a total accident rate that is _____ times that of adults:


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  4. Failure to yield is the primary cause of what percentage of fatal and injury collisions?


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  5. To avoid tailgating, and help avoid a rear-end collision, you should give yourself a gap of how many seconds behind the car in front of you?


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