I received an “Order of Suspension” from the DMV for Financial Responsibility

Why does the DMV issue an “Order of Suspension” for Financial Responsibility?   As Californians, we all know that driving a motor vehicle in this state is a “Conditional Privilege.” This means that, if qualified, a person may operate motor vehicles in the State of California; but there are strings attached. To maintain the privilege to drive, a person must pass a written test and performance test to demonstrate their knowledge and ability to drive. That same person must obey the rules of the road, and must pay fees to ensure their vehicle is properly registered with the State. These are all common “conditions” for maintaining a driver license.


One of the most power requirements levied upon our citizens is they must maintain Proof of Financial Responsibility which covers any motor vehicle they own or operate in the state. If you want to keep your driver license, you must maintain liability auto insurance or some other form of Financial Responsibility.

If a person is involved in a “reportable accident” and it is determined they did not have auto insurance or another form of Financial Responsibility in affect at the time, their Driver License is subject to suspension. Normally, the DMV will receive information that a person was not properly covered by insurance in one of the following ways:

  • One of the parties involved in the reportable accident files a Report of Traffic Accident with the DMV. Also referred to as an “SR-1”, this report may suggest that an injury or death occurred or that there was property damage in excess of $750. If the SR-1 also reveals that anyone involved in the accident was not covered by Financial Responsibility, this will cause the DMV to issue an “Order of Suspension.”
  • If an automobile insurance company learns that any party involved in a reportable accident was not covered by an acceptable form of Financial Responsibility, regardless of who was at fault, California law requires the insurance company to report that person to the DMV. This will cause the DMV to issue an “Order of Suspension.”
  • If a law enforcement officer investigating a traffic accident discovers that an involved party did not possess an acceptable form of Financial Responsibility, he or she is mandated by law to report that person to the DMV. This will cause the DMV to issue an “Order of Suspension.”

This DMV issues an “Order of Suspension” in a Financial Responsibility case because they seek to prompt a person into action; otherwise that person’s driver license will be automatically suspended.

What should I do if I receive an “Order of Suspension” for Financial Responsibility?   The obvious first step is to determine if you were involved in a traffic accident and whether or not the vehicle you drove was properly insured at the time. If you were properly insured at the time of a reportable accident, your solution may be as simple as sending a fax to the Department of Motor Vehicles, Financial Responsibility Unit. If you can prove that you did hold proof of Financial Responsibility at the time of the accident, the DMV should automatically terminate any further action against you.

The Department of Motor Vehicles, Financial Responsibility Unit can be contacted at:

California Department of Motor Vehicles -Financial Responsibility Unit

P.O. Box 942884, M/S J-237, Sacramento, CA 94282-0884. Telephone: (916) 657-7482 or  Fax: (916) 657-6320

If you were not involved in the traffic accident alleged, or if you were not properly covered by Financial Responsibility at the time of an accident, it is imperative that you react quickly and correctly. California law mandates that an accused driver must contact the DMV within a specified period of time (normally 14 days) to request an administrative hearing. If not, the person’s driving privilege will be suspended for one year.

If you have received an “Order of Suspension” from the California DMV alleging that you violated California’s Financial Responsibility Laws, contact the DMV Defense Experts at California Drivers Advocates. We know precisely what it take to win a Financial Responsibility Hearing and exactly how to get it done.

Call CDA today. We win Financial Responsibility Hearings.

With many years of experience and hundreds of Administrative Hearings conducted, the DMV Defense Experts at California Drivers Advocates (CDA) have seen every reason that Financial Responsibility Hearings occur.

Occasionally, the DMV will be acting on incorrect information. At times, unscrupulous insurance companies will decline to pay a claim even though an insurance policy was in effect; and at times, a driver mistakenly allows an insurance policy to lapse. Whatever has caused you to come into the DMV’s focus we have seen it, we have dealt with it, and we’re ready to put our experience to work for you.

Anytime a driver deals with the DMV, there are time sensitive events that must be addressed. Don’t lose your driver license because you neglected to act quickly enough. Call CDA today. We’re ready to begin working for you.

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More about Financial Responsibility Hearings at the California DMV

By | 2017-05-07T05:03:52+00:00 February 3rd, 2016|Financial Responsibility|0 Comments

About the Author:

Rob Collier
Mr. Collier served with distinction as a Law Enforcement Specialist with the United States Air Force and received an honorable discharge. He is a graduate of the United States Air Force Security Police Academy and the United States Army Police Investigators School. While stationed at Edwards Air Force Base, Mr. Collier was one of the first Security Police Specialists to provide “close‐in” security for Space Shuttle Missions when that program was new. Mr. Collier is a Distinguished Graduate of the Los Angeles County Sheriff Academy (Class 228) and the Los Angeles County Sheriff’s Special Weapons and Tactics School (SWAT). He received specialized training in basic accident investigation and determining speed from skids at the San Bernardino Sheriff Academy. For nearly 15 years, Mr. Collier was the Operations Officer for one of the most prominent specialty DUI law firms in the country. Reporting directly to that firm’s owner, Mr. Collier directed the day to day operations of DUI attorneys, investigators, expert witnesses and support staff. He developed the firm’s “white glove” policy of client care that is now the hallmark of our company. He has been involved in the preparation, investigation, and presentation of literally thousands of DMV administrative hearings throughout Southern California. Receiving hands on training from defense attorneys, retired DMV hearing officers, and some of the best scientific experts in the field, Mr. Collier possesses a unique level of experience; making him a true expert in the field of Administrative Advocacy. Mr. Collier is our Chief Advocate and available to represent clients in all categories of DMV hearings in California. If your case is assigned to one of our other professional advocates, Mr. Collier will personally review and supervise each case. He is accessible to each and every one of our clients.