California’s Low Cost Auto Insurance Program Reduces Rates

July 2, 2013

The California Department of Insurance (CDI) is reducing rates for the California Low Cost Auto Insurance Program (CLCA) for the second year in a row. With annual premiums starting between $226 and $338, the program helps income-eligible good drivers afford auto insurance that meets the state’s financial responsibility laws.

The CLCA rates vary by county and are subject to change each 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, and meet the income eligibility requirements.

CLCA provides income eligible persons with liability insurance protection at lower rates as a way to meet California’s mandatory auto insurance laws. Along with a good driving record, applicants need a valid driver license, vehicle registration, initial down payment and proof of income (i.e., payroll stub, Medi-Cal card, or copy of last year’s tax return). Rates vary by county.

California’s Low Cost Automobile Insurance Program (CLCA) was developed in 1999 by the Legislature and exists pursuant to California Insurance Code Section 11629.7. The CLCA Program is available through California Department of Insurance and is administered by the California Automobile Assigned Risk Plan (CAARP).

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