What is the California low cost auto insurance program?

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California motorists looking to compare their options for cheap car insurance ought to take a look at a program designed by the state government to help certain drivers save on their premiums. The California Low Cost Automobile Insurance Program is a special program available to low income drivers in the state of California, featuring lower minimum coverage requirements and reduced rates.

  • The state of California has long battled high uninsured motorists rates, as millions of drivers have grappled with the high cost of insurance.
  • California Low Cost Automobile Insurance Program is an attempt by the state government to reduce the uninsured motorist rate by offering drivers who otherwise could not afford to be insured a chance to purchase liability coverage for a reasonable rate.
  • The program includes specific requirements for participation including income limits and other stipulations.

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California Low Cost Auto Insurance Program Highlights

The Low Cost Automobile Insurance program offers motorists who qualify as good drivers according to the requirement set forth in the program and who also meet other eligibility requirements the chance to obtain legal coverage for a more affordable rate. To qualify as a good driver in the state of California, a motorist must:

  • Have been involved in no more than one at-fault accident leading to property damage;
  • And no more than one moving violation over the past three years.

California state car insurance requires that every driver carry auto liability insurance at all times. However, in spite of this legal requirement the state is home to millions of uninsured motorists, in part because so many find the cost of getting insured so prohibitive, with California ranking among the most expensive states for auto coverage year after year.

Reduced Auto Liability Requirements

To create a more affordable coverage scenario, the California Low Cost Auto Program features a reduced liability insurance package allowing policyholders to carry less liability coverage than is normally required according to state law. This package includes:

  • $10,000 per person and $20,000 per accident in bodily injury protection;
  • And $3,000 in property damage liability coverage.
  • These lower levels make California Low Cost Auto insurance policies less expensive because they do not pay out as much on claims, saving insurers on their end.

Drivers who are eligible for this California car insurance program can also add optional coverage to their policies for an additional cost. These optional endorsements are uninsured motorist bodily injury protection and medical payments coverage.

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Qualifying for California Low Cost Auto Insurance Coverage

To get into the Low Cost Automobile Insurance program in California, in addition to qualifying as good drivers, participants must also meet some other requirements.

  • Any applicant for the program must be at least 19 years old, and must have been continuously licensed for at least three years with no interruptions.
  • Vehicles being insured under this program cannot exceed $20,000 in value.
  • And drivers who hope to take part cannot exceed maximum income limits.
  • These limits are based on household size, beginning at $27,075 for drivers in single person households.

It is fairly simple for drivers to find out for sure whether they qualify for the Low Cost Automobile Insurance program. All they need to do is fill out a simple questionnaire if in doubt.

For those who do qualify, there are several payment options, making it even easier to get covered and make the required payments. Participants could elect to pay their policies in full at the outset of the coverage period, make a $125 deposit and pay the balance within 30 days, or choose from several installment payment options requiring an additional installment fee.

Getting Started with the California Low Cost Auto Program

There are many price differences when it comes to car insurance by state. Drivers who qualify for the Low Cost Automobile Insurance program in California can follow these simple steps to get started with their coverage:

  • Contact a producer licensed by the state to sell these policies. Those who have completed their questionnaire and found they are eligible will receive a list of certified producers located near them.
  • Work with a local producer to complete the application for a California Low Cost Auto policy.
  • Pay any required deposit and fill out all pertinent documentation.

California insurance code prohibits producers from charging extra fees when submitting insurance applications through the Low Cost program. The only variable in the program cost is geography, with prices differing slightly in different parts of the state. However, the code also prohibits participants from choosing the car insurance company their policies will end up going through. This is a small trade-off foe the savings involved.

The California Low Cost Auto program is administered by the California Department of Insurance. Interested drivers who think they might be eligible are encouraged to explore this possibility and find out how their premiums might compare if they were to go ahead and take part in the program. As always, it is smart to look at all options prior to enrolling in auto insurance coverage in order to choose the right policy and get the best coverage for the lowest cost. We can help you save with our FREE comparison tool! Enter your ZIP code and find cheap auto insurance quotes for FREE!

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