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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