California law mandates that every driver must have financial responsibility, typically through car insurance. However, for many income-eligible individuals, the cost of standard auto insurance can be a significant barrier, leaving them uninsured and vulnerable. The California Low Cost Automobile (CLCA) Insurance Program was specifically created to address this issue, offering a pathway to affordable liability coverage.
Established in 1999 and governed by California Insurance Code Section 11629.7, the CLCA program aims to provide Low Cost Car Insurance options to those who qualify based on income. This initiative recognizes that being uninsured not only puts the driver at risk but also impacts the safety and financial well-being of everyone on California roads. By making insurance more accessible, CLCA helps ensure more drivers can meet their legal obligations and drive with peace of mind.
A significant update to the program came with Senate Bill (SB) 1273, effective January 1, 2015. This law broadened access to low cost car insurance by relaxing the continuous licensing requirement, allowing drivers with less than three years of driving experience to participate. Furthermore, it increased the maximum vehicle value eligible for the program from $20,000 to $25,000, reflecting the realities of the car market and ensuring more people can qualify. These changes demonstrate California’s ongoing commitment to making affordable car insurance a reality for its residents.
If you are a consumer in California concerned about the cost of car insurance, the CLCA program could be the solution you need. To explore your eligibility and find a certified agent in your area, please visit the official California Low Cost Automobile Insurance Program website at www.mylowcostauto.com or call 1-866-602-8861. These resources will provide you with the information and support necessary to determine if you qualify for low cost car insurance through this valuable state program.
For insurance agents and brokers looking to assist their clients with low cost car insurance options, the Automobile Insurance Plan Service Office (AIPSO) website offers comprehensive details about the CLCA program. Visit www.aipso.com/PlanSites/CaliforniaLowCost.aspx to access resources and information designed specifically for producers.
The California Department of Insurance actively promotes the CLCA program and offers expert speakers for community events. If you have questions about the program or would like to partner with the Department of Insurance for outreach activities, please contact their Community Relations and Outreach Branch (CROB) at 300 S. Spring Street, South Tower Los Angeles, CA 90013, or call toll-free at (877) 401-9550. You can also reach them via email at [email protected]. The California Low Cost Automobile Insurance Program is a public service brought to you by the California Department of Insurance and administered by the California Automobile Assigned Risk Plan (CAARP).
