Low-cost auto insurance program promoted at universities in California


Low-cost auto insurance program promoted at universities in CaliforniaStudents are always finding themselves at a disadvantage when it comes to Auto Insurance costs. However, things look quite promising with the Low Cost Automobile Insurance program. This was introduced by representatives from California’s Department of Insurance and the notebook computer maker ASUS.

In the current economic situation, people are trying to save money, especially students. Liability auto insurance at affordable rates is a dream-come-true for many students.  The CLCA program is the best one meeting the state’s financial responsibility laws while costing less than $400 a year.

The CLCA has been a useful resource for many Californians but its usefulness is most felt by the college population. Chris Shultz, deputy commissioner said that liability insurance through the CLCA program has become quite cost effective. Students can now get insurance for as low as $26 a month and it will meet with the California state requirements as well.

It was seen that many students often look online to find good deals on insurance. This is why the CDI along with ASUS representatives met with American River College in Sacramento to provide the CLCA program to students. They also demonstrated how easy it is to apply for the same program online.

The American river college was the second one to be visited by the insurance department’s college events team. A third such event is scheduled to happen at a community college in San Diego.

There are of course certain criteria which determine eligibility for the CLCA program:

  • The applicant has to be a capable and good driver. He or she must not have more than one at-fault property damage only accident or moving violation in the last 3 years.
  • There should be no charges of felony, no at-fault accident with death or bodily injury against the students driving record in the last three years. Also no misdemeanour conviction should be there for violating the vehicle code.
  • The family of the student should be able to meet eligibility limits prescribed for their income at $27,225 for a single person and $36,775 for two people and $55,875 in case of a family of four.
  • The insured vehicle should not have a value exceeding $20,000.

This program is aimed at reducing the numbers of uninsured drivers on California roads. Understanding that driving without insurance is illegal and encouraging more people to check if they are eligible was an important part of the program.