In California, auto insurance companies can offer some help to drivers who have good records but don't have a high income. The California Low Cost Automobile Insurance Program (CLCA) was put in place to give low wage-earners an alternative to driving without insurance. By law, all drivers must have insurance coverage in place, but many people found they couldn't afford even the minimum level of coverage mandated by law.
Liability-Only Coverage
Coverage under this plan is limited to liability only and is administered by the California Automobile Assigned Risk Plan. The policies are written by insurance companies licensed to provide insurance products in the state.
Each county in CA sets premium rates on an annual basis. Rates paid by participants are designed to cover losses and expenses to the Program on a county-by-county basis. Installment plans are available to make paying for coverage easier. Unmarried, male drivers will be subject to a 25 percent surcharge on their premium rates.
Qualifying For CLCA
The income requirements for CLCA are as follows:
- A Single Person Earning $26,000 or less per year
- A Two-Person Family Earning $35,000 or less per year
- A Family of Four Earning $53,000 or less per year
- A Family of Eight Earning $89,000 or less per year
Other Factors
The following factors will also be considered:
- No at fault accidents causing bodily injuries or a fatality in the past three years
- At least 19 years of age
- Owning a vehicle worth $20,000 or less
- No loss of license during the previous three years
Insurance companies in California offer the CLCA program to help good drivers afford insurance coverage. For those people who find it hard to get the coverage they are required to carry by law, it's a good option.
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