Looking for low cost car insurance in California? California is not the largest state in the United States, coming in third place after Alaska and Texas, but it is the most populated state. Located on the West Coast, California is home to over 36 million people, 22 million of whom are licensed drivers. That number of licensed drivers is higher than it used to be due to California laws regarding auto insurance. Read on to understand some of the basics of California car insurance coverage and then put your newly gained knowledge to use in finding low cost California car insurance coverage.
Legal Liability Requirements for California Low Cost Car Insurance
All California residents are legally required to carry minimum liability of $15,000 per person and $30,000 per accident for bodily injury. Another $5,000 is mandatory for property damage. In order to satisfy California’s Compulsory Financial Responsibility Law, you must carry proof of financial responsibility in one of four ways. These methods of providing proof include a legal and current auto insurance policy, a $35,000 surety bond, $35,000 cash paid to the Department of Motor Vehicles (DMV) as a deposit, or a DMV issued certificate of self-insurance.
There is one more proof of financial responsibility that is not addressed above, and that is proof of CLCA, the California Low Cost Automobile Insurance Program. This program provides low cost automobile insurance coverage for less than $400 per year. The basic liability under this program is $10,000 per person and $20,000 per accident for bodily injury, as well as $3,000 for property damage. Although the basic liability for CLCA is lower than the standard requirements, it legally satisfies the proof of responsibility law.
The Rates for California Low Cost Car Insurance
The rates for the CLCA vary by county, but have been set in such a way that this program is essentially funded by the premiums and no tax dollars are ever used for it. Administered by the California Automobile Assigned Risk Plan, the rates are reviewed periodically and adjusted as needed. The policies themselves are actually written by licensed insurance companies of California.
Premiums, which are on a per car basis, can be as low as $161 in Imperial County and can go up to $368 in Los Angeles County. The average rate falls in the mid $200 dollar range. There is an optional add-on policy for Medical Payments for $1,000 in coverage. The premiums for this coverage range from $17 to $50 with an average cost being $23. Uninsured Motorist coverage can also be obtained through the plan for an additional $22 to $73.
The average cost is $37 and adds $10,000 per person and $20,000 per accident to your policy in the event you have an accident with someone who is not carrying insurance. Neither comprehensive nor collision are part of the program, but you are allowed to purchase them yourself for standard rates directly from your assigned insurance agent (producer) if you so choose.
You have five payment options for the CLCA. The first one is to pay the premium in full at the onset and the second one is to pay a deposit of $125 and then pay the remaining balance within thirty days. The next three options are payment plans which will add $4 to your cost with each installment payment. Your choices are to pay $100 down and then pay the balance off in six bi-monthly (every other month) payments, pay $125 down and then pay off the balance over five bi-monthly payments, or pay 15% down and then make six bi-monthly installment payments for the remaining balance.
All insurance companies licensed in California are required to participate and are not allowed to charge any fees for the program. As a participant, you do not have a choice as to who your provider will be; the insurance company will be randomly assigned to you.
Eligibility Requirements for California Low Cost Car Insurance
The CLCA started out as a pilot program in 2000 to help reduce the number of uninsured motorists due to affordability. The program met with success initially in Los Angeles and San Francisco and by 2005 a bill was passed expanding the program to even more counties. By 2007, all counties were included, offering low cost car insurance to eligible residents.
In order to be eligible, you must be a licensed driver for three continuous years prior to applying. You also must be at least nineteen years old and if you are a college student you must not be claimable as a dependent. You will not be eligible if your record for the past three years reflects more than one property damage accident for which you were at fault or if you received a moving violation that earned you more than one point. You are also not eligible if you have a vehicle related conviction for a felony or misdemeanor.
The car for which you are requesting insurance cannot be valued for more than $20,000. Income requirements are based on the gross annual income of a familial household. This means that two non-related families living in one home are considered separate for eligibility purposes, even though they are living in the same household. Income must be 251% below the federal poverty level, ranging from $27,075 for one person all the way to $92,525 for a family of eight.
Compare California Low Cost Car Insurance Quotes!
Not everyone will qualify for California Low Cost Automobile Insurance, but insurance is mandatory regardless of your program eligibility. To shop for low cost insurance policies, use the free quote tool on the top of this page and start comparing California car insurance quotes today!