PLCaliforniaeasy
Apart from carrying a liability policy, which of the following is an authorized method for a California driver to satisfy proof of financial responsibility under the Vehicle Code?
AA $15,000 cash deposit with the DMV
BA signed letter of credit from any FDIC-insured bank for $25,000
A $35,000 cash deposit or surety bond filed with the DMV
DA notarized affidavit of solvency listing personal assets exceeding $100,000
Why this is the answer
Veh. Code §§ 16000-16560 identifies four ways a California driver can prove financial responsibility. By far the most common is a liability insurance policy meeting minimum limits. The non-policy alternatives are: (1) a $35,000 cash deposit with the DMV, (2) a $35,000 surety bond issued by a CDI-admitted insurer, or (3) DMV self-insurance certification, generally available only to fleet owners with 25 or more vehicles registered in their name. Letters of credit, asset affidavits, and lower-dollar deposits are not recognized.
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