Jones: Low Cost Auto Insurance Decrease Up To 9% Across California

May 16, 2012

California Insurance Commissioner Dave Jones announced that beginning May 15 the cost of an annual premium for the California Low Cost Automobile Insurance Program has decreased up to 9 percent across California’s 58 counties and the income eligibility caps for qualifying for the program have increased.

As a result of the premium reductions, the statewide average cost of an annual Low Cost Automobile Insurance policy in California is now $257.69 a year and the premiums for all California counties are now less than $350 annually, according to the California Department of Insurance. The greatest changes in premiums are in the counties of: Alameda, Contra Costa, Marin, Sacramento, San Francisco, San Joaquin, San Mateo, Santa Clara, Stanislaus and Sutter.

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

Established by the legislature in 1999, the CLCA program provides liability-only insurance for less than $350 a year.

Drivers may qualify if they: have a good driving record; are at least 19 years old have been continuously licensed to drive for three years; own a vehicle valued at $20,000 or less; meet the income eligibility requirements ($27,925 for one person, $37,825 for two people, up to $57,625 for a family of four).

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