CLCA extended Now


04The low cost auto insurance for the whole state of California (CLCA) was extended another five years after Governor Arnold Schwarzenegger signed in a legislation authored by Dave Jones (Assemblyman) making it into a new law. The CLCA would have expired next year but because of the new law, many drivers especially those with low income can now enjoy the low cost insurance offered by the state for another five years.

There are many benefits brought about by this insurance program. Many people who cannot get insurance from the regular market due to low income. The extension of the CLCA is very timely considering the fact that many people are losing their jobs due to the economic downturn. Using the internet to get a low-cost insurance will become easy and convenient due to this new bill since insurance agents’ usage of online application systems will increase. In addition, it provides three names of insurance agents who provide low-cost auto insurance to hotline callers instead of mailing the list to the caller. This insurance product offers very low premiums ranging from $161 per year to $368 per year.

In order to qualify, this program, applicants must have a clean record in driving, must be at least 19 years old, and has been continually licensed for three years. Furthermore, the family income should not exceed 250 percent of the federal poverty line. This means that a family should have an estimate income of more than $27,000 per year for a single person, $36,000 for two people and $55,000 for a family with four members. The vehicle must also appraise a value of $20,000 less. The low-cost auto insurance provides $10,000 amount  person’s body injury, $20,000 for accident and $3,000 for property damage.       

The use of low-cost auto insurance has increased in most counties in California. In San Bernardino, the program experienced a 55 percent increase. Since it began in 2000, the program has received about 69,000 applications with more than 56,000 policies issued to date. An estimated 85 percent of those who bought the policy were previously uninsured drivers. This year alone, more than 5,000 applications for the CLCA have been accepted.       

Although the program helped thousands of customers, many insurance advisers still advise consumers to compare all available auto insurance programs before purchasing this program since it provides only minimal coverage. Consumers can visit many websites where they acquire free quote comparisons.