Final answer:
California drivers have alternatives to liability insurance coverage to satisfy the Compulsory Financial Responsibility Law, such as making a cash deposit with the DMV, obtaining a surety bond, or a DMV-issued self-insurance certificate. However, these methods may not be practical for all drivers.
Step-by-step explanation:
In California, the Compulsory Financial Responsibility Law requires drivers to have financial responsibility for any damages or injuries they may cause while driving. While liability insurance is the most common way to meet this requirement, there are alternatives. Drivers can choose to make a cash deposit of $35,000 with the DMV, obtain a surety bond for $35,000 from a company licensed to do business in California, or get a DMV-issued self-insurance certificate. These options provide a way to cover costs without traditional insurance but require significant financial outlay or proof of financial responsibility beyond what a standard insurance policy might demand.
It's important to note that while these alternatives exist, they might not be practical for the average driver and come with their own risks and responsibilities. The most common and accessible method for most drivers will still be holding an auto liability insurance policy.