Having auto insurance coverage is mandatory for just about all vehicle owners in every state. Unfortunately, it doesn’t come cheap. While some states provide no assistance and simply leave their residents to lose insurance coverage, and often their licenses as a result, when they can’t pay the bills, California is a little different.
In California, the California low-cost auto insurance (CLCA) program helps to ensure that all drivers can afford at least the cheapest coverage options. Often referred to simply as the low-cost automobile insurance program, the CLCA has been in effect since 1999. In that time, it has helped countless drivers continue to operate their vehicles legally with the minimum required insurance coverage.
CLCA Eligibility
To be eligible for the CLCA program, drivers need to meet income requirements. More specifically, they must be beneath the federal poverty level and unable to pay for other forms of auto insurance. Additionally, program applicants must:
- Be at least 16 years old
- Have a valid CA license
- Want to insure no more than two cars per person
- Own a vehicle worth $25,000 or less
- Have a combined annual household income that falls below 250% of the poverty level
- Have all cars in the household insured through the CLCA program
- Have no more than one at-fault accident and/or ticket in the past three years
Costs Associated with the CLCA Program
Unlike ordinary insurance providers, those offering coverage under the CLCA are not allowed to negotiate. As a result, drivers will have to make whatever payments are required of them by the program and cannot request lower ones. The base cost varies by county, but most start at around $200-250.
Some drivers also have to pay a surcharge. Single male drivers between 19 and 24 must pay a 25% surcharge, and any driver who has had a license for less than three years must pay a 30% surcharge. As with the general costs associated with program participation, these surcharges are non-negotiable.
What’s Covered?
Unlike ordinary insurance companies, those participating in the CLCA program can offer only base-level coverage. There is no option for getting comprehensive insurance coverage. However, there are two forms of optional coverage available to drivers, both of which have fixed prices that get added to the base cost of the policy plus whatever surcharges are applicable. Drivers can get both medical payment and uninsured motorist protection through the CLCA program.
Alternatives to the CLCA
CLCA participation isn’t for everyone, and not just because there are strict income and other eligibility requirements. Many drivers find that the restrictive nature of the program creates a situation where it’s not worth the money. Anyone who wants comprehensive insurance coverage or to be able to choose which insurance provider to work with will have to look elsewhere for help with car insurance.
It can take some extra work to find an affordable auto insurance policy via more traditional means. However, most drivers find that they are able to get competitive rates regardless of their age, sex, and driving status.
Start the Search for Better Insurance
Every California car owner is required to meet auto insurance coverage minimums. Whether low-income drivers choose to do so through the CLCA program or not is irrelevant. As long as they have insurance policies in place that meet the state’s standards for minimum coverage, drivers are free to make their own choices about where to get it.