Many families find auto insurance an expensive affair although it is a necessity. It cuts into the budget of other household expenditure. Hence, the state of California has set up a system where these people can obtain car insurance that is affordable where the insurance premiums are low with low payment plans. The main aim of California’s Low Cost Automobile Insurance Program or CLCA is to provide car insurance that is affordable to good drivers who belong to the lower income groups and meet the necessary requirements. This program had come into effect in 2007. The coverage under this program is very basic but is sufficient. The basic coverage is that of liability insurance that covers damage to property as well as bodily damage in the event of an accident. It is not mandatory to add the medical costs provision or the uninsured/underinsured motorist cover but the plan has this as an additional option. The CLCA Insurance plan does not offer any form of collision or comprehensive cover but the insurers could purchase this on their own. Although, the requirements to purchase the policy under the CLCA is not difficult it is quite specific in nature.
- The applicant should be over 19 years of age and must possess a driver’s license continuously for the last 3 years.
- It is mandatory to have a good driving record. This would mean one moving violation or one at-fault accident in the last 3 years. There must be no charges of felony or any other conviction for misdemeanor on any vehicle-related violations on the insurer’s record.
- The car might only be valued at $20,000 or less if it is insured through the California Low Cost Automobile Insurance plan. This will ensure that the insurance providers will not have an issue with the coverage that is required for an average vehicle. There are typically no high-performance vehicles or costly upgrades that would be involved.
The income requirements under this plan are as follows:
- Income of one person – below $27,075
- Income of two people – below $36,425
- Income of three people – below $45,775
- Income of four people – below $55,125
- Income of five people – below $64,475
- Income of six people – below $73,825
- Income of seven people – below $83,475
- Income of eight people – below $92,525
There are many payment plan options also under the CLCA such as full annual premium or in installment options.
