If you crash and you do not have liability insurance:
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You will be fined $75.
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Your driving privileges will be suspended for one year.
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Your driving privileges will be revoked for two years.
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You will be fined $50.
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Explanation
If you are found to be driving without liability insurance, you can lose your driving privilege. This is because the law states that you must be financially responsible for your actions whenever you drive and for all the motor vehicles you own. Without an insurance policy, you cannot prove that you have this financial responsibility, so your driving privilege will be suspended for one year.
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This question appears in the following DMV practice tests: