Lower Rates for Californians under California Low Cost Insurance Program

The CLCA program has been helping Californians get low-cost insurance since 1999 when the program was instated. All drivers are required by law to have the minimum levels of insurance coverage, or to have proof of financial responsibility. Currently, liability insurance requirements are 15/30/5, or $15,000 of bodily injury per person to a maximum of $30,000 per accident, with property damage limits of $5,000.

However, sometimes drivers go without insurance even though it’s illegal. Sometimes it means the difference between buying groceries or getting car insurance. This program is aimed at low-income motorists to facilitate liability insurance to them at an affordable price. This year, rates have decreased even further.

According to Onlineautoinsurance.com, “The California Low Cost Automobile Insurance Program (CLCA) decreased annual premiums up to 9 percent across all state counties and increased income eligibility maximums, according to an announcement from state regulators. The reduction, the biggest since 2009, puts the average statewide price of a CLCA policy at $257.69 annually, according to the announcement.”

How Can you Qualify for the CLCA Program?

First and foremost, there is an age requirement to this program. Drivers must be at least 19 years old to qualify. In addition to this requirement, drivers will need to have held their license for a minimum of 3 years, continuously, in order to be eligible. Having a clean driving history is another must.

Once these conditions have been met, there are income requirements. In order to qualify, you must be earning no more than the following figures:

  • Household 1 person (Annual Salary: $27,925)
  • Household 2 people (Annual Salary: $37,825)
  • Household 3 people (Annual Salary: $47,725)
  • Household 4 people (Annual Salary: $57,625)

For additional figures and information, please visit the program’s website, here, or call them at: 1(866)602-8861

Affordable Car Insurance

These cost reductions will make it easier for eligible drivers to comply with state insurance regulations.

Insurance Commissioner Dave Jones says, “More than 4 million cars, or 15 percent of the cars on California roads, don’t have insurance. If financial limitations have kept consumers from purchasing car insurance, these changes make Low Cost Auto Insurance a more viable option for uninsured drivers.”

As you can see, this is a sensible option for most low-income drivers looking to stay insured. However, if you would like to consider your options and peruse the various insurance companies in your area for the best rates, please visit our website. We have up-to-date information on state auto insurance requirements, as well as an online tool to help you get the best rates. Just select your state below, and get several quotes from insurers in your area.

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