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California’s low cost car insurance program drops rates

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.

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 http://www.mylowcostauto.com.

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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