California Lowers Cost of Discount Car Insurance Program
A little-known discount car insurance program offered to low-income California drivers has reduced its costs, according to an announcement made by the state’s insurance commissioner. Dave Jones explained this week that the average policy rate in theÂ California low cost auto insurance program has fallen by up toÂ 9 percent.
California Low Cost Automobile Insurance Program
The California Low Cost Automobile Insurance Program (CLCA) is a program created in 1999 as an aggressive outreach initiative. In the state, every driver is required to carry liability auto insurance to legally operate a vehicle. The program was designed as a discount car insurance option to ensureÂ that individuals with lower incomes could afford coverage.
Since its start, the program has had difficulties findingÂ individuals willing to participate. And in recent years, it’s become more challenging to sign up drivers because many feel that they cannot afford any amount of coverage.
Currently, only 11,000 people are signed with the California low cost auto insurance program. In an effort to find more individuals willing to participate, the state has taken steps to lower its costs.
Qualifying for the Discount Car Insurance Program
California residents are being encouraged to find out if they qualify for the state’s discount car insurance program. To qualify, drivers must:
- Have a clean DMV record
- Earn less than $28,000 annually
- Be at least 19 years old
- Have been continuously licensed for at least three years
- Have no felony or misdemeanor convictions for a violation of the Vehicle Code
Jones estimates that about 4 million drivers are currently uninsured in the state and about 15 percent get behind the wheel.
With the state issuing hefty penalties to individuals who are caught driving uninsured — along with other major costs drivers face who get into an accident with no liability coverage — the state is encouraging qualified drivers to sign up for the California Low Cost Automobile Insurance Program as soon as possible.