Houston Finance

Nov 3 2017

California Low Income Car Insurance – Online Auto Insurance #low #cost #auto #insurance #in #california


California Low Income Auto Insurance

For those California motorists who may fall in the low income bracket, finding affordable auto insurance may not be out of reach. By comparing quotes from various insurers, individuals who feel they could not find a policy which would fit their budget may be able to so in order to avoid operating their vehicles illegally and avoid costly citations, impound fees and expenses resulting from a traffic accident.

Many drivers take the risk of driving without the proper coverage simply because they believe that they cannot afford to be protected. This is not necessarily true. There are several insurers that are more than fair in cost and by comparison shopping a motorist can find a premium that can get them on the road and be in accordance with state laws.

California Low Income Car Insurance Programs

Some individuals may find themselves unable to afford the cost of policies due to the fact that they may simply not make enough or they live in a highly congested area where the price of premiums are more expensive. Luckily, these Californians are not left without an option.

As of the year 2000 the state introduced the California Low Cost Automobile Insurance Program (CLCA). This program was made available to provide lower costing liability coverage to good drivers who could show financial need. The policies are written by state admitted insurers and by rule the providers would have to take their fair share of low-cost applications.

At the time of introduction this was only available to residents of Los Angeles and San Francisco county. In 2005, the state s legislation passed a bill to include those who reside in the counties of Alameda, Orange, San Diego, San Bernardino, Riverside and Fresno. By December 10, 2007, all counties would be included in this program making it statewide.

Although this may be a good way for those who find coverage unaffordable, the maximum limits that the CLCA program will allow are the following:

  • $10,000 for bodily injury to one person
  • $20,000 for bodily injury to two people or more
  • $3,000 for property damage to others

These limits can be seen in the format of 10/20/3 and are lower than the state s requirement of 15/30/5. With that in mind if an individual who carries these limits is found to be at-fault in causing a traffic accident and the expenses exceed the limit stated on the policy then they will be held responsible for the remaining balance of the injuries and damages. Before opting for these programs one should compare rates from insurers to see if there is a company that will offer the same rate as the CLCA. Since the applicant would need to be a good driver and the vehicle cannot have a value exceeding $20,000, there may be an insurer that is within one s budget that can offer better protection.

Eligibility Requirements for the California Low Cost Automobile Insurance Program

The program was developed to keep uninsured vehicles from operating on the roadways and to allow a person with low income to be able to maintain coverage. In order to receive these benefits the following must apply in order to qualify:

  • The applicant must be 19 years old and have had their driver s license continuously for the past three years
  • Applicant must qualify as a good driver ;
    • No more than one at-fault property damage accident or no more than one violation point and;
    • No felony or misdemeanor conviction for violating the Vehicle Code on record
  • The value of the automobile to be insured must be no more than $20,000
  • Must meet minimum income requirements

For more information regarding eligibility the consumer should contact the Department of Insurance for more information.

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