The State of California has in existence an automobile Liability insurance program (LCA) that assists people whose income is below a certain level to purchase insurance at greatly reduced rates. The objective is everyone should have the opportunity to be insured so this program is very affordable.
When you apply for the program, you have to meet certain income requirements. As an example, a single person cannot have income that exceeds an amount over 250% of the poverty level. Most states in the contiguous U.S. have a program like LCA.
The rates, or premiums, vary by county in the State of California. The down payment is 15% of the nominal premium. The payments are bi-monthly (every other month), and the remaining balance is divided into six installments.
Details on the LCA program can be found on the CA DMV website.
California’s Low Cost Auto Insurance (CLCA) program helps good drivers that are income eligible afford auto insurance that meets the state’s financial responsibility laws. Each policy provides liability coverage for the vehicle’s primary driver and eligible secondary drivers. Each individual car owner may buy separate policies to insure up to two vehicles, per person under this program. All vehicles in your household must be covered under the CLCA program.
To be eligible for the California’s Low Cost Auto Insurance Program, consumers must:
- Have a valid California driver’s license
- Own a vehicle valued at $25,000 or less
- Meet income eligibility guidelines
- Be at least 19 years of age
If you have recently received a driver’s license through AB60, you may be eligible for this program regardless of immigration status.
