Related Articles California Low Cost Auto Insurance Policies In Force What Does It Cost? LCA Premium By County
In an effort to stem the tide of uninsured drivers in California and offer a low priced insurance policy for the poor, state legislators created the California Low Cost Automobile Insurance Program.
The CLCA was launched as a pilot program in July 2000 for San Francisco and Los Angeles county drivers. The program began sales statewide in December of 2007.
As of 2011, roughly 10,500 of California's estimated 24 million drivers had insurance through the state program.
Through the program, insurance companies are required to offer a reduced auto liability insurance policy costing less than $350 a year in Los Angeles and $290 a year in San Francisco to motorists with good driving records whose gross annual incomes are less than 250 percent of the federal poverty level (approximately $50,000 annually for a family of four).
California law currently requires that drivers carry a minimum of $15,000 per person for bodily injury liability coverage, $30,000 per incident and $5,000 for property damage. In order to lower the price of the policy, legislators allowed it to carry lower standard limits of $10,000, $20,000 and $3,000, respectively.
Other requirements for drivers seeking the policy include:
·The driver must be at least 19 years old and have been driving for at least three consecutive years;
·Insurance applicants may have no more than one property-damage-only insurance claim in which they were at fault or one point for a moving violation within the last three years;
·The car being insured may not be worth more than $20,000;
·The insured may not be a college student claimed as a dependent for federal or state income tax purposes;
·The driver cannot have an in-force liability insurance policy for another vehicle.
There is also a 25 percent surcharge for unmarried males between the ages of 19 and 24, because this population segment represents the highest driving risk.
Competitive auto insurance rates in California may mean that additional coverage beyond the reduced liability limits of the LCA program are available through the private auto insurance market. It is important to consult with your insurance carrier or agent to find the policy that works best for your individual needs.
The Low Cost Auto Insurance Program is administered by the California Auto Assigned Risk Program (CAARP). For more information, call CAARP at (866) 602-8861.
California Low Cost Auto Insurance Program
California Department of Insurance