Auto insurance is required in most US states. However, it’s not cheap. California created the low cost automobile insurance program to ensure low-income drivers are covered.
CLCA insurance is not like regular car insurance policies. It has low coverage limits and restrictive eligibility. Only California drivers can apply. This insurance is designed to help motorists be financially responsible and legal, but it will not cover serious accidents.
California Low Cost Auto Insurance Program
California Low Cost Auto Insurance Program offers affordable coverage for low-income drivers. You only get what you pay for so coverage is much lower than the minimum requirements. This policy provides only basic coverage. You don’t have the option of adding collision or comprehensive coverage. These are the limits:
- Bodily Injury: Maximum $10,000 per person, $20,000 per claim for an at-fault injury
- Property Damage: Coverage up to $3,000 for damage caused by your vehicle to the property of others
- Uninsured motorist bodily Injury: Optional coverage up to $10,000 for injuries to other vehicles involved in an accident
- Insurance for medical payments: Optional coverage which pays up to $10,000 in medical expenses following an accident
California Low Cost Auto Insurance
Contrary to popular belief, CLCA is not for people who just want cheap car insurance. This insurance program is only for those who live below the federal poverty line and require affordable auto insurance. This isn’t a regular insurance policy so eligibility is limited and customers aren’t given much choice about coverage. This policy is only available to a select few insurance companies, and customers are not allowed to choose their provider.
You must meet all the requirements for eligibility, including the income and household requirements. These include:
- Minimum 19 years old
- Valid California driver’s licence or AB60 license
- Maximum of two cars per person and no more than two policies
- Vehicles not worth more than $25,000
- Annual household income less than 250% of federal poverty level
- All vehicles in the household are covered under CLCA
- In the last 3 years, there has been up to one at-fault incident and one ticket
How to Apply
The CLCA application process is not the same as buying insurance policies. The CLCA insurance program does not allow you to compare rates or choose the provider. You can either fill out the questionnaire at the CLCA Website or contact a CLCA agent to determine your eligibility.
Enrolment is easy. You simply need to click on the “Apply Now” button to access the website. Once you’ve selected an agent, enter the information. For any problems or disputes, please contact the California Department of Insurance helpline.
The cost of the CLCA insurance policy
The annual cost of an insurance policy is determined by a variety of factors. These include the vehicle type and the customer’s location. You must accept the California Low Cost Auto Insurance program and you cannot negotiate, as you would when shopping for the best auto insurance policies.
CLCA provides basic liability coverage. Each county in California will have a different price because each county has a different price. This price is much lower than standard coverage rates. However, it can increase in two situations: if there are more than three years driving experience and if there is only one male driver aged between 19 and 24, and if the driver is a single man. The first has a 25% surcharge, while the latter has a 30% surcharge.
Two optional coverages are available: uninsured motorist insurance and medical payments. These costs are added to the policy’s base cost. The table below shows the base price by county as well as the policy’s cost after an additional surcharge.
Questions frequently asked
Is the California Low Cost Auto Insurance Program sufficient?
Although the CLCA’s car insurance program does not provide liability coverage, it is sufficient to fulfill financial responsibility. These limits may not be sufficient to cover damages in the event of an accident that is serious.
Who is eligible to participate in the CLCA insurance program
California drivers below the federal poverty line are eligible for the program. The CLCA program must be used to insure all cars within a household that has more than one vehicle. Drivers younger than 19 years old are not eligible.
Which insurance company is the most affordable?
Car insurance costs vary from one person to the next. Cost of car insurance is determined by factors such as location, vehicle type, driving record, and other factors. However, there are some insurance companies that offer the best rates in the country and are ranked among the most affordable car insurance companies.
