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There are thousands of drivers in the U.S. who don’t carry car insurance. Not having car insurance is illegal, and punishable by fines or even jail time, yet many still do not have it. In 1999, California determined that if more low-income drivers had access to affordable car insurance, there would be fewer California drivers without coverage.
Eleven years later and California’s Low Cost Automobile Insurance Program is now going strong statewide. The program is designed to provide deeply discounted insurance rates to low-income drivers who qualify.
To qualify for the program, drivers in California have to exhibit proof of certain income requirements, as well as prove their good driving history for the past three years. Additionally, an eligible driver’s vehicle must not be worth more than $20,000. Drivers must be 19 years old or older to qualify.
Reasons this Program is Great
Driving without car insurance just isn’t smart. If you are involved in a car accident, you will personally be responsible for paying for any car repair or medical expenses if you are at fault, or if the other driver doesn’t have insurance either.
This program:
Gives you no excuse not to have car insurance
Is more affordable than paying out of pocket for damages
Keeps you from getting “no insurance” traffic tickets
Helps get your car repaired if you’re in an accident
Gives you peace of mind when driving
Income Eligibility
One of the biggest factors in the eligibility process is making less than the required limits on income:
$27,075 for a single person
$36,425 for a couple or two people living together
$55,125 for a family of four
Costs for the Program
Drivers who are eligible pay between $150 and $300 for a year’s worth of insurance coverage, which is a fraction of what a standard policy costs. For as little as $22 a month, drivers can have the peace of mind that they are covered should they be involved in a car accident, and are no longer liable for any costs or damages they might incur.
Coverage
Naturally, being a state program, coverage under the Low Cost Automobile Insurance Program isn’t as extensive as what it would be should you buy a policy directly from a car insurance company. CLCA does not offer physical damage coverage, including comprehensive and collision, but this can be purchased directly from the assigned insurer once the program has processed your policy.
Coverage under CLCA has the following limits:
For Bodily Injury liability, you are covered up to $10,000 per person and up to $20,000 per accident
For Property Damage liability, you can receive up to $3,000 per accident in benefits
You can also purchase optional coverage if you choose:
Medical Payments: get coverage up to $1,000 per person
Uninsured Motorist Bodily Injury: buy coverage up to $10,000 per person and $20,000 per accident
Learn More About the Program
If you live in California and want to see if you qualify for the state’s auto insurance aid program, visit the state’s insurance website and fill out the questionnaire. If you qualify, you will be presented with a list of auto insurance providers to reach out to.
