The state has developed a what is known as the California Low Cost Automobile Insurance Program (CLCA) to help provide individuals with a good driving record yet have a low-income with an affordable way to obtain coverage. Since it is illegal to operate a motor vehicle without liability policies, the main goal of the program is to help those who may not be able to afford a “standard” policy with a way to abide by the laws with lower costing premiums. It is also intended to help keep uninsured motorists off of the roadways and protect those who occupy the roadways.

There are a few things that residents should understand before they decide to opt for the program. A very important item which should be mentioned is that the program’s liability limits are a bit lower than that of the law. The limit required by the state is 15/30/5, whereas the program will only provide 10/20/3. In the event of an at-fault accident, the policyholder will be responsible for any remaining amount of compensation due to the other party once the policy’s limits have been exceeded.

Therefore, although the premium may be cheaper than that of a “standard” policy it offers less protection. One should shop around as much as possible and purchase this type of coverage as a last resort to protect them in future. In addition, not all individuals may be eligible and the following must apply; the applicant must have be considered a good driver, be at least 19 years of age and continuously licensed for the past three years, have a vehicle that does not exceed a value of $20,000 and meet the income requirements.

The premium varies within each county and one can easily view the rates that they can expect to pay on the state’s website. This can help with a comparison if they want to shop around and compare prices before deciding to take this option.