The CLCA is a program that the State of California rolled out in 1999 to provide low-cost auto insurance solutions so that good drivers who are income-eligible can comply with California's mandatory insurance requirements at a price they can afford. No matter which part of California someone lives in, they will find that CLCA insurance is more affordable than auto insurance policies offered through private insurers. The CLCA insurance program ensures that all drivers can buy affordable auto insurance to comply with the State of California's mandatory auto insurance requirements at a price they can afford.
Who Qualifies for the CLCA Program?
To qualify for the CLCA insurance program, a driver must be at least 16 years old, have a valid California driver's license, meet certain income eligibility requirements, own a vehicle worth less than $25,000, and be a new driver or a driver with a good driving record. The program is available to anyone who qualifies, regardless of their immigration status.
A person is allowed up to two auto insurance policies under the CLCA insurance program, one for each vehicle. These policies provide liability coverage to the primary driver and any eligible secondary drivers in the household, but all vehicles in the household must be covered under the CLCA program to qualify.
Eligible drivers are those who:
• have no more than one at-fault accident where only property damage was paid or no more than one point for a moving violation within the past three years
• have no at-fault accidents involving bodily injury or death on their driving records in the last three years
• have no felony or misdemeanor convictions for a violation on their motor vehicle driving record
• meet the income eligibility requirements of the program
What are the income eligibility requirements for CLCA insurance?
Income eligibility requirements per household (all persons listed on the federal or state income tax form) are:
• One person - $32,200.00
• Two people - $43,550.00
• Three people - $54,900.00
• Four people - $66,250.00
If a household exceeds these income limits, CLCA Insurance Solutions is not an option, and the household must seek coverage with a private auto insurance carrier.
What Kind of Coverage is Provided by CLCA Insurance?
The basic liability policy provided by CLCA Insurance includes bodily injury liability coverage, which covers the injuries to occupants of the vehicle(s) you hit or pedestrians, and property damage liability coverage for the damage you cause to their property. Uninsured Motorist (UM) coverage and medical payments coverage are additional coverages that can be purchased through CLCA to cover injuries to you and your passengers. Coverage for damages to your vehicle is not available through the California Low-Cost Auto Insurance Program.
A basic policy under the CLCA Insurance program provides:
• Up to $10,000 per person in case of bodily injury or death
• Up to $20,000 per accident in case of bodily injury or death
• Up to $3,000 for property damage
Additionally, a driver can purchase Uninsured Motorist coverage of up to $10,000 per person and up to $20,000 per accident if the driver and/or passengers are injured in an accident with an uninsured or underinsured motorist and $1,000 of medical payments coverage can be purchased to protect the driver and passengers in the insured vehicle if they are injured in an accident in which the driver of the insured vehicle is at fault.
If a driver wants coverage for the damages that their own vehicle damaged, they would need to seek coverage outside of the CLCA because the CLCA does not offer comprehensive and collision coverage for the insured vehicle.
How Much Does a CLCA Policy Cost?
Like any auto insurance policy, many factors go into the premium that a driver pays for their auto insurance. The CLCA specifically looks at a driver's income eligibility, the age of their vehicle, their driving record, and the number of people in their household. The average cost of a CLCA in California varies by county. One can estimate the cost of their auto insurance through the CLCA by going to https://www.mylowcostauto.com/.
How to Apply for the CLCA Insurance Program
In order to apply for the CLCA Insurance Program, you must visit the CLCA's website to complete a questionnaire or contact a CLCA insurance agent. If your completed questionnaire indicates that you are eligible for auto insurance in the CLCA Insurance Program, you will be taken to additional screens where you can apply for coverage directly online. If you run into any issues while filling out the questionnaire, you can contact the California Department of Insurance at 1-866-602-8861.
