The California Low Cost Automobile Insurance Program

The California Low Cost Automobile Insurance Program is a state-wide program that helps low income drivers with good driving records obtain basic auto insurance for around $400 per year. The genesis of the program was in 1999 in Los Angeles and San Francisco. The success of the program grew and now the program is available in all counties. The purpose of the program is to eliminate or reduce the number of drivers who are uninsured as this presents a significant risk within the communities.

The CLCA program is focused primarily on counties with the highest number/percentage of uninsured drivers and the highest percentage of low-income individuals. Interestingly, the CLCA program is unsubsidized by state taxpayers which begs the question of why haven't more states implemented similar programs. The California CLCA rates in each county vary and are set so the premiums collected sufficiently cover losses and expenses in each county. In other words, the rates are set so the program is only subsidized by the individuals in the program within each county. This is a fantastic program to reduce the number of uninsured motorists within the state.

Eligibility Requirements
The program is intended for low income drivers with fairly clean driving records so there are several restrictions. For example, the state defines good drivers as anyone who has not had more than one at-fault accident or one moving violation in the past three years. Further, you must not have had a vehicle code felony or misdemeanor on your driving record. If you meet these requirements you qualify as a good driver in the state's mind. However, there are additional eligibility such as:

• You must be at least nineteen years old to qualify and must have been continuously licensed to drive for the previous three years.
• The vehicle you intend to insure must be valued at less than $20,000 at the time of purchase by the insured.
• Family gross income cannot exceed 250 percent of the federal poverty level.
• The person shall not be a college student claimed as adependent of another person for federal or state income tax purpose

Coverage
The coverage under the policy is 10/20/3 or $10,000 for bodily injury for one person/accident, $20,000 for bodily injury for all persons as a result of any one accident, and $3,000 for property damage as a result of any one accident. Policies have a one year term and are renewed annually thereafter as long as eligibly requirements are met.

Cancellation and Non-renewal
Policies under the program can only be cancelled by the insured for non-payment, fraud or misrepresentation under the policy, or under certain conditions if the insured purchases additional auto liability insurance. The policy can only be non-renewed by the insurer if there is a substantial increase in the hazard insured against or if the insured no longer meets the eligibility requirements. In that regard, eligibility of the insured must be recertified annually by the California Automobile Assigned Risk Plan after the first year and by the insurer that issued the policy thereafter.

We have helped customers from Los Angeles, San Diego, San Jose, San Francisco, Long Beach, Fresno, CA and other great cities in the golden state lower their premiums and save money on their insurance. Use the form above to find low cost auto insurance, homeowners insurance, medical insurance, life insurance or long term care insurance. Using our California insurance agent and broker network, you can compare rates quickly from the comfort of your home.

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