California Lowers Prices on Car Insurance Program | CarInsurance ...

Insurance Commissioner Dave Jones speaks with the media about price reductions to CLCA.

Unless a motorist lives in one of the few places where it?s possible to drive without car insurance, they?re breaking the law.

And these same uninsured motorists are also playing a game of Russian roulette with their financial futures if they don?t have an auto policy in place. Beyond the specter of fines and court costs, being found at fault for a crash or collision can leave an uninsured driver on the hook for thousands of dollars in damages and medial costs, not to mention on the hook for their own such costs.

Many uninsured drivers say the cost of insurance is prohibitive, and thus, a few states across the nation have set up low-cost alternative car insurance programs for low income families. Hawaii, New Jersey and Texas have such alternatives in place.

And California is another such state, having established their own California Low Cost Automobile Insurance Program (CLCA) in 1999. Despite being available for 13 years, at last count, only about 11,000 drivers had signed up for the program. Nearly 15 percent of the motorists in the Golden State drive without a policy, despite this low-cost alternative.

Administrators of the CLCA believe so few of the state?s uninsured drivers have signed up for the program because of two factors: a lack of knowledge that the program exists; and the cost of the program. Thus, CLCA administrators have announced that they are lowering rates for the program across the state by as much as nine percent, taking advantage of a recent lack of claims made by their policyholders.

The CLCA is also increasing the income eligibility caps for qualifying for the program as well, which should allow more of California?s uninsured drivers to qualify for the program.

?More than 4 million cars, or 15 percent of the cars on California roads, don?t have insurance,? Commissioner Jones said. ?If financial limitations have kept consumers from purchasing car insurance, these changes make Low Cost Auto Insurance a more viable option for uninsured drivers.?

As with all auto insurance policies, rates for the CLCA vary based on the location a driver lives. With the recent reduction of premiums, the statewide average for CLCA coverage is now just $257.69 a year. The highest any driver will pay for coverage is an annual premium of under $350.

According to the CLCA, the greatest changes in premiums were made in the following California counties: Alameda, Contra Costa, Marin, Sacramento, San Francisco, San Joaquin, San Mateo, Santa Clara, Stanislaus and Sutter.

Drivers may qualify if they:

• have a good driving record
• are at least 19 years old
• have been continuously licensed to drive for three years
• own a vehicle valued at $20,000 or less
• meet the income eligibility requirements ($27,925 for one person, $37,825 for two people, up to $57,625 for a family of four)

Drivers that are interested in CLCA coverage details or that would like to purchase a policy can visit the CLCA website,?call toll free by telephone at 1-866-602-8861 or text ?low cost? 65374 via a cellular phone.

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