How Much Do CA Low-Income Insurance Policies Cost?


Man with empty pockets in front of California flagWhen it comes to finding cheap California car insurance, the first piece of advice that is usually given is to shop around. Californians are lucky when it comes to the options available for auto insurance. Not only are there seemingly countless insurers to choose from, the Golden State has also developed a program, the Low Cost Auto Insurance Program (CLCA), to help residents with low incomes get insured at a very reasonable rate. According to the state, as of May 17, 2012, rates will be lowered so that the price range will be between $231 and $437 for an annual policy, depending on which county the driver lives in and whether there is a young male living in the household.

CLCA Policies Come with Low Coverage

Although it's rarely recommended, getting the smallest amount of liability coverage allowed by the state will almost always lead to the cheapest premium, and even though it may not offer too much protection from lawsuits or for personal assets, it's much better than taking the risk of driving uninsured. 

The premiums that are available through the program are going to be some of the most affordable out there, but the amount of coverage may not be sufficient. Those who buy the cheapest car insurance in California through the CLCA are choosing to purchase levels of protection that are actually below the legal limits of the regular market. The state currently requires motorists to carry liability limits of 15/30/5, but the CLCA only provides 10/20/3.

California's requirements are already low in comparison with the rest of the nation, and purchasing lower amounts can leave motorists' assets at risk if they were to cause bodily injury or property damage as a result of operating their car.

‚ÄčEligibility Requirements for the Program

There are also eligibility requirements that must be met in order to qualify. For example, motorists must be at least 19 years old, be considered a good driver and make no more than the maximum income amount set by the state. Additional requirements will also need to be met, and residents can check with the California Department of Insurance to see if they qualify.

Getting Insured without the CLCA

Unfortunately, many will not be able to use the state's help because of eligibility restrictions and can't take advantage of these low rates. The best chance these motorists have of getting cheap California auto insurance is to explore all available options. Unlike the CLCA, the premiums on the open market aren't set by the state, which means that choosing a company must be done carefully to avoid paying too much for car coverage since each has a different set of rates.
The Golden Gate Bridge
The most effective approach to getting insured is to compare numerous companies based on the desired coverages. Although it may take a fair amount of time, doing so will often lead to annual savings that can add up to hundreds of dollars. Although the state's low cost program is the cheapest way to obtain an auto policy, it's not an option for everyone. But with some comparison shopping, motorists should be able to find the most affordable carrier.