§ 704.010.Motor Vehicles, Execution Sale Proceeds and Insurance Proceeds
Title 9. Enforcement of Judgments · Division 2 · Chapter 4. Exemptions · Article 3. Exempt Property · Last amended 2023 · Last verified July 28, 2026
In one sentenceSection 704.010 shields up to $7,500 in combined motor-vehicle equity, execution-sale proceeds, and insurance or indemnification proceeds from a vehicle loss, keeps those proceeds exempt for 90 days after the debtor receives them, and automatically protects a debtor's only vehicle sold at execution up to that same $7,500 without any claim being filed.
(a)Any combination of the following is exempt in the amount of seven thousand five hundred dollars ($7,500):
(1)The aggregate equity in motor vehicles.
(2)The proceeds of an execution sale of a motor vehicle.
(3)The proceeds of insurance or other indemnification for the loss, damage, or destruction of a motor vehicle.
(b)Proceeds exempt under subdivision (a) are exempt for a period of 90 days after the time the proceeds are actually received by the judgment debtor.
(c)For the purpose of determining the equity, the fair market value of a motor vehicle shall be determined by reference to used car price guides customarily used by California automobile dealers unless the motor vehicle is not listed in such price guides.
(d)If the judgment debtor has only one motor vehicle and it is sold at an execution sale, the proceeds of the execution sale are exempt in the amount of seven thousand five hundred dollars ($7,500) without making a claim. The levying officer shall consult and may rely upon the records of the Department of Motor Vehicles in determining whether the judgment debtor has only one motor vehicle. In the case covered by this subdivision, the exemption provided by subdivision (a) is not available.
Plain-English Summary
Cars matter to this exemption scheme because most people need one to get to work. Section 704.010 protects up to $7,500 combined across three related things: the equity a debtor holds in motor vehicles, the proceeds of an execution sale of a vehicle, and any insurance or other indemnification paid for a vehicle that was lost, damaged, or destroyed. All three draw from the same $7,500 pool rather than stacking separately.
Proceeds get their own timing rule. Once the debtor receives execution-sale proceeds or insurance money for a vehicle, that money stays exempt for 90 days. After that window closes, the money loses its protected status and becomes ordinary cash subject to levy like anything else, unless another exemption reaches it.
Subdivision (d) adds a shortcut for the common case of a debtor with a single car. If that one vehicle is sold at an execution sale, the first $7,500 of the proceeds is exempt automatically, with no claim of exemption needed. The levying officer can check Department of Motor Vehicles records to confirm the debtor owns only one vehicle. When this automatic protection applies, the debtor can't also invoke the ordinary $7,500 exemption in subdivision (a) — it's one or the other, not both.
Frequently Asked Questions
Is my car exempt from a judgment creditor in California?
Up to $7,500 in combined equity in your motor vehicles is exempt under § 704.010(a). Equity beyond that amount can still be reached, and the value is measured against used-car price guides that California dealers commonly use.
Do I have to file paperwork to protect my car if it's my only vehicle and gets sold at a sheriff's sale?
No. Section 704.010(d) makes the first $7,500 of the sale proceeds exempt automatically when the debtor owns only one motor vehicle, without filing a claim of exemption.
How long does the exemption last on insurance money I get after my car is totaled?
Ninety days from the date you receive the insurance or indemnification payment, under § 704.010(b).
How is my car's value calculated for this exemption?
Section 704.010(c) looks to used car price guides that California automobile dealers customarily rely on, unless the vehicle isn't listed in those guides.
Amendment History
Amended by Stats 2022 ch 716 (SB 1099),s 3, eff. 1/1/2023. Amended by Stats 2020 ch 81 (SB 898),s 2, eff. 1/1/2021. Amended by Stats 2003 ch 379 (AB 182),s 5, eff. 1/1/2004.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 28, 2026.
· Official source
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