You are required to notify DMV by filing a Report of Traffic Accident Occuring in California (SR-1) form if:

  1. You allowed a licensed driver from another state to drive your vehicle.
  2. You were involved in a collision with more than $1,000 in damages. ✓
  3. You failed to pay your registration fees.

Answer: B. You were involved in a collision with more than $1,000 in damages.

You must file an SR-1 when you were involved in a collision with more than $1,000 in damages.

Why this is the answer

The handbook says you must report a collision to DMV when it caused more than $1,000 in damage to property, or when anyone was injured or killed. Each driver involved files the SR-1, and it applies whether or not you caused the crash and even on private property. The passages also say law enforcement will not file it for you. That makes the collision-damage threshold the reporting trigger described in the question, not the other situations listed.

Why the other answers are wrong

Remember it

Picture the SR-1 as the driver's own paperwork: if the crash crosses the damage line or hurts someone, you send it, not the officer.

Official handbook: California Driver Handbook (DL 600), Section 10: Financial Responsibility, Insurance Requirements, and Collisions, p. 78

Explanation drafted with AI (deepseek-flash) from the official handbook passage cited above, then checked automatically and by a second model on 2026-10-23. Always confirm with the official handbook.