California Low Cost Automobile Insurance program offers residents low rates
Throughout the recession, auto insurance rates in many areas have been steadily rising. As more individuals begin to cut coverage due to high premiums, some states are finding that a vicious cycle has begun, where premiums must continue to rise to compensate for accidents caused by uninsured individuals.
However, some states are coming up with creative ways to manage the problem. One solution brought about by the California Department of Insurance is the California Low Cost Automobile Insurance program. The program offers drivers in the state inexpensive basic liability coverage.
“Every day, more than a million uninsured drivers hit the roads in California,” said Deputy Commissioner Chris Shultz. “The bottom line is that driving without insurance is illegal. The California Department of Insurance encourages all Californians to find out if they qualify.”
CLCA Program details
The program began as a pilot experiment in 1999 in Los Angeles and San Francisco. However, in 2005 a bill was passed that allowed the state commissioner to determine the need in each county for low auto insurance rates, and introduce the program where he or she saw fit. By December 2007, the program was introduced statewide – just in line with the start of the recession.
The program provides basic liability auto insurance coverage in the amounts of $10,000 per person, $20,000 per accident for bodily injury liability and $3,000 for property damage liability per accident. Optional coverage, including medical payments and uninsured motorist policies, can also be obtained for an added fee.
Eligibility requirements
For those who get California car insurance quotes that reveal prices that may be too steep for them to handle, the CLCA program may be worth looking into. However, they must meet certain requirements in order to participate.
In order to be eligible for the California Low Cost Automobile Insurance drivers must first meet income requirements. Drivers must also be over the age of 19, need to have been driving for at least three consecutive years and meet specific standards that qualify them as a “good driver.” Their vehicle must also be valued at less than $20,000.
CLCA helps lower California student car insurance costs
For those planning to go to school in the Golden State, the prospect of low California student car insurance costs may be a major boon. The California Department of Insurance has catered much of the marketing of the CLCA program to students.
Representatives from the department have recently been touring college campuses to inform students of the potential savings on auto insurance rates they can have by participating in the program.
“The CLCA is a great resource for many Californians, but it can be especially helpful for college students,” said Shultz. “For as little as $26 a month, students can get liability insurance through the CLCA program – satisfying California’s insurance requirements.”