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.
More about Financial Responsibility Hearings at the California DMV