Auto insurance rates in California have risen astronomically in recent years and this has led to a growing number of motorists using their vehicles without any auto insurance coverage in place. When accidents occur, this can cause unnecessary stress and concern for victims, especially when an uninsured motorist is at fault.
To combat the problem, the state of California has introduced the California Low Cost Automobile Insurance Program (CLCA) to help motorists in low-income families obtain coverage. Although the program has been effective since 2007, recent changes have made the concept even more appealing to those who struggle to find cheap auto insurance quotes elsewhere.
The CLCA program provides a base level of auto insurance coverage that meets the minimum mandatory state requirements. To qualify, applicants must meet a number of criteria:
- Applicants must be over 19 years of age and must have held a license for the previous three-year period
- Only one moving violation or at-fault accident is allowed on the driving history of the applicant
- The value of the vehicle being insured must be less than $20,000
Naturally, there are also income requirements that integrate into the program and drivers must not exceed the following levels based on money coming into a home. The figures are worked out for all income owners in an individual home:
- 1 Person – Below £27,075
- 2 People – Below $36,425
- 3 People – Below $45,775
- 4 People – Below $55,125
- 5 People – Below $64,475
- 6 People – Below $73,825
- 7 People – Below $83,475
- 8 People – Below $92,525