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California’s Low Cost Auto Insurance Program Drops Rates

SACRAMENTO,
CA–July 7, 2013: The California
Department of Insurance (CDI) announced that it is
reducing rates for the California Low Cost Auto Insurance Program
(CLCA)
for the second year in a row. With annual premiums starting between
$226
and $338, the program helps income-eligible good drivers afford auto
insurance that meets the state’s financial
responsibility laws.

“Our goal is to decrease the number of uninsured drivers in
California by providing a viable, low-cost option for drivers who
qualify. It’s our hope these additional rate reductions
will attract
more consumers to the program.”

The CLCA rates vary by county and are subject to change each year.
Drivers may qualify if they have a good driving record, are at least
19
years old, have been continuously licensed to drive for three years,
own
a vehicle valued at $20,000 or less, and meet the income eligibility
requirements.

“I am pleased that consumers of the
state’s Low Cost Auto Insurance
Program will enjoy a consecutive year of rate reductions in this
affordable auto insurance alternative,” said Insurance
Commissioner Dave
Jones. “Our goal is to decrease the number of uninsured
drivers in
California by providing a viable, low-cost option for drivers who
qualify. It’s our hope these additional rate reductions
will attract
more consumers to the program.”

CLCA provides income eligible persons with liability insurance
protection at affordable rates as a way to meet
California’s mandatory
auto insurance laws. Along with a good driving record, applicants
only
need four items to enroll; a valid driver license, vehicle
registration,
initial down payment and proof of income (i.e., payroll stub,
Medi-Cal
card, or copy of last year’s tax return). Rates vary by
county. To find
out the rate in your county or to learn more about CLCA, call
1-866-602-8861 or visit MyLowCostAuto .

Developed in 1999, California’s Low Cost Automobile
Insurance Program
(CLCA) was established by the Legislature and exists pursuant to
California Insurance Code Section 11629.7. The CLCA Program is
brought
to you by the California Department of Insurance and is administered
by
the California Automobile Assigned Risk Plan (CAARP).

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