California Auto Insurance

Everyone who owns an automobile in the state of California is required to carry liability insurance coverage to protect against financial loss sustained by another vehicle and its occupants in case of accident.

While many car owners agree that California auto insurance is a good idea, many people quite simply cannot afford to pay competitive rates for the coverage offered by many insurance providers.

California now has a plan for providing the required insurance coverage to those drivers who might otherwise forego coverage due to the expense.

California auto insurance coverage is now being offered to qualified low-income drivers under a program called the California Automobile Assigned Risk Plan. The program goes by the acronym CLCA, or California Low Cost Automobile Insurance Program.

Under this program, low-cost California auto insurance is available to drivers in more than 20 counties as long as those drivers meet certain state-mandated requirements. While the program isn’t available statewide, anyone in a county not covered can contact the CLCA with a request to include the county for coverage.

Eligibility requirements for this California auto insurance program include income limits that are based upon the number of people per household. All covered drivers must be aged 19 or older and must have been licensed continuously for the three years preceding application.

Additional eligibility requirements for the state-run California auto insurance program include a good driving record. This means no more than one accident caused by the driver in which there was property damage only. If another person sustained bodily injury during an accident caused by the insurance applicant, coverage will be denied.

Automobile value is another eligibility restriction to this insurance coverage. Only vehicles valued at less than $20,000 can be covered. If other vehicles or drivers in a household have insurance coverage from an outside source, no vehicles or drivers in that household is eligible for coverage under this program.

While the California auto insurance offered by the state is sure to be a blessing to many, the restrictions on coverage limit the number of drivers eligible to such a degree that is still a wise idea to shop around for insurance from other sources. And always compare prices for coverage from more than one source.