California law dictates that all motorists must carry automobile insurance. However, California car insurance in the past was simply unaffordable, especially for those with low incomes.   Thanks to the California Low Cost Automobile Insurance Program (CLCA) many individuals and families have been able to purchase auto insurance at a reduced rate.  California auto insurance for low income individuals and families is available to those that meet certain requirements.  Let’s take a look at the eligibility requirements so that you can determine whether or not you might be eligible for this program.

Let’s first look at the income criteria individuals or families must meet to be eligible for the program.  In order to qualify your household gross annual income must be 250% less than the federal poverty level.  For one person $25,000, a two person family 35,000, three person family 44,000, four person family 53,000 all the way up to an eight person family of $89,000.  Once you have met the income requirements, you will also need to meet several other provisions to qualify.

Those applying for CA auto insurance for low income must be in good driver standing.   In order to be considered a good driver you must meet the following qualifications.   Over the last three years you cannot have had any more than one at fault accident where there was property damage.  You must also not have had more than one point for a moving violation or have had any at fault accidents that involved any kind of bodily injury.   Your driving record must also be completely free from and felony or misdemeanor convictions of the vehicle code.

Drivers must also be a minimum of 19 years old, have maintained a license to drive for the past 3 years and have a vehicle that is valued for 20,000 or less.  College students are only eligible if they are not being claimed as a dependent on any other person’s state or federal income tax return. Males under the age of 25 who are not married must pay a 25% surcharge.  This is because they are considered to be the highest at risk group to insure.  Finally, if you have one car insured under this low income insurance plan, no other cars registered for anyone in your household can be insured under any other auto plan policy.

CA auto insurance for low income individuals and families can be purchased from insurance agents in the state of California.   If the one time premium is out of your budget, installment plans are available.    Generally you will need to put 15% of the premium down with the balance being paid in six additional installments.  Participants in the plan also have the option of adding on uninsured motorist and medical coverage.  Each year your policy could change.  The premiums are based on the county you live in and adjust annually to cover losses and expenses from the previous year.  To find out more about how you can purchase low income California auto insurance contact the CLCA at 1-866-602-886

California by law requires all drivers to carry auto insurance.   Surprisingly it is estimated that up to 20% and even more in some areas of California are not insured.  With a tough economy and so many individuals facing financial hardship this number very well could be on the rise.  Not carrying car insurance can certainly be a risky move.  If you were involved in an accident and did not have CA auto insurance you most likely would be facing a legal nightmare.

If you are found to be in a car accident without California auto insurance you could be facing fines, car impoundment and license suspension.   Fines can be up to $500.00 per incident and you would have your license suspended for one year.  If you require a license to drive out of necessity you can apply for a specific special license to use during this time period.  These include limited driving privileges to go to and from work and any driving you need to do on the job.  You can also file for a special license to be able to drive family members to seek emergency medical care and to drive a child to and from school when no other transportation is available.  Of course to apply for these special licenses you will have to provide proof of auto insurance coverage.

Besides losing your license and facing fines, if the accident was your fault you are technically liable for damages and liability to those involved in the accident.   If the other driver has the means they very well could take you to court to try and collect damages.   This is something that you should be prepared for.

You might be wondering what would happen if you were uninsured and in an accident with another uninsured party.  If the other driver of the accident also did not have California auto insurance and there were no other parties involved you in a sense just might be lucky.  If neither of you reported the accident and the police were not notified there would be no legal repercussions.  However, you would still have to pay to have your car repaired or replaced which in the end could cost you more than insurance.  You would also have to pay for any medical bills you might incur because of the accident.

If there was another party involved or the police were notified you would find yourself in the same scenario as with an insured party.  The police would most likely be notified, your license would be revoked and you would be liable for any damages if the accident was your fault.

As you can see, in most cases, if you drive without CA auto insurance you are putting yourself at great legal and financial risk.  Even though times are tough, you will want to do everything you possibly can to remain insured.  Shop around for a good rate, and only take the minimum insurance if absolutely necessary.  If you are of low income you can also check into the special programs California offers to obtain low cost auto insurance.

Many people today are struggling to pay their bills, and if you live in CA you are most likely paying a small fortune for your auto insurance.  At one time or another you may have thought, “hmmm do I really need to carry insurance?”.  The answer is: absolutely!  In fact it is required by law and all motorists must carry California auto insurance minimums.  If you are caught without the minimum insurance coverage you will most certainly have much more than a headache on your hands.  Uninsured motorists face some severe consequences.

When you go to register or renew your vehicle registration you must show proof of having California auto insurance minimum requirements.  The minimum requirement coverage everyone must carry is $15,000 in liability for one person in a single incident and $30,000 for multiple people in a single incident.  You are also required to carry $5,000 in property damage for a single incident.  If you cannot show this proof of coverage you will be unable to obtain vehicle registration.

At all times you must carry proof of your auto insurance in California.  It is your responsibility to have documentation in your vehicle at all times.  If you are asked to present such documentation and are unable to,  you could be facing some severe consequences.

You can be fined up to $500.00 plus penalties.  You also will risk having your vehicle impounded.  If this should happen, financial responsibility lies on you to pay for all costs that occurred to have your car impounded.  This includes towing and vehicle storage.   You are also at risk of having your license suspended.

If you are in an accident and do not have the minimum California auto insurance coverage it could be financially detrimental.  Under the Compulsory Financial Responsibility law you are financially responsible for paying damages and for bodily injuries out of your own pocket.

If you are having difficulty paying for your car insurance there are some options out there for you.  First look at your coverage and see if there is anything you can eliminate from your policy.  Many times we double pay for certain coverage like road side assistance.  If you carry AAA you do not need this in your insurance coverage.

Can you raise your deductible?  Many people have very low deductibles and you can generally get a much lower rate when you raise yours.

Be sure to shop around.  If you have not done this recently it really may be beneficial.  Most often you will find a good variance in rates that insurance companies will offer you.   Make sure you get quotes from reputable California auto insurance agents and then go with the cheapest rate.

Finally, if you are really stuck and just can’t afford any premium you may want to look into the California Low Cost Automobile Insurance. Program otherwise known as the CLCA.  It is a great program offered in the state of California that allows low income individuals and families to obtain cheap California auto insurance minimum coverage.

Finding cheap auto insurance in California can be a challenge.   California is known for having some of the highest insurance rates in the country.  However, if you become an educated consumer on a California car insurance policy, you will learn some easy steps you can take to find cheap rates.

One key component to receiving the best rates is to drive safely.  While this may sound cliché, it really can make a huge difference in what you pay for auto insurance.  Causing an accident or receiving a speeding ticket is sure to increase your rate.  Receiving a DUI can be devastating to your policy, in many cases doubling your fee.  Those who have a clean record typically pay the cheapest rates for auto insurance in California.

Making sure your car has certain safety features can also help you save money in California.  Insurance companies, in general, will give you a better rate if the car you are insuring has an alarm system.  Cars that have dual and side impact air bags also typically receive a discount.  Having anti-lock brakes will almost always reduce your policy.   Finally, the car you drive can also make a difference.  An expensive luxury sport car for example will cost considerably more to insure than a typical midsize family vehicle.

Knowing what is in your policy is also critical.  Many times without even realizing it we are paying for coverage we simply do not need.  If you already have medical coverage, eliminate it from your insurance policy.   Another coverage many people pay twice for is towing.  If you have AAA you already have towing coverage and do not need to include it in your California Auto insurance policy.  Finally, take a look at your deductible.  Insurance agencies are known for pushing very low deductibles.  If you increase your deductible you could save yourself hundreds of dollars.  The higher your deductible the more you will save.

Another thing you can do to get cheap auto insurance is to take a driver training course.  Most insurance companies in California will give you a decent discount if you can show proof that you have taken a certified driving or defensive driving course.  For just a few hours of your time you could save yourself a bundle.

Perhaps the most important thing you can do after considering all of the above factors is to shop around.  Every company is going to give you a different price quote.  Don’t just get one quote and say ok I will take it.  Auto insurance should be looked at like car shopping or house hunting.  You need to look at different companies and go with the one that is going to offer you the coverage that you need for the best rate.

As you can see there are a variety of factors that go into finding the cheapest car insurance rates in the state of California.   Once you become knowledgeable of the issues that play into your car insurance rate, you can begin to shop around to different companies.  Rest assured if you have done your homework, you will receive a great rate.

If you live in the state of California you are more likely to have your car stolen than any other state in the country.  Partly due to the close proximity to the Mexican border, Californians should be alert and take preventive measures to avoid being a statistic.  If your car is stolen you will of course need to report it to the police and then to your California auto insurance company.

Due to the high rate of auto thefts in the state, California Auto Insurance policies should almost always include auto theft insurance.  Although not required by law, auto theft insurance can be included in your comprehensive auto coverage.  Coverage generally includes theft of the vehicle and its parts.  Some policies will also include miscellaneous articles that were in your vehicle when it was stolen.

There are a variety of steps you can take to help protect your car from auto theft. Let’s take a look at what they are in hopes of avoiding having to report a theft to your California car insurance company.

1. Always take your keys with you when you leave your car.  Believe it or not this accounts for 20% of auto thefts.
2. Always lock your doors when leaving your car.  This is such a simple thing to do, yet over half of all thefts occur when the owner of the vehicle did not have the doors locked.
3. Never hide an extra set of keys in your car.  It can be very easy for a thief to discover your second set and be off with your car in no time.
4. Always park in lighted areas and when possible park in attended lots.
5. Always turn your car off even when you will be out of it for just a minute.  Cars are most frequently stolen at ATM’s, gas stations, convenience stores, etc.
6. Always close your windows.
7. Take valuables with you when you leave the car or at the very least make sure they are out of sight.
8. When parking ensure your vehicle is hard to toe.  Turn your wheels towards the curb or to the side in driveways and parking lots.
9. Park inside your garage if you have one.
10. Install a car alarm or anti theft device.
11. Tint your windows making it difficult for a thief to look in your car.

Even when taking all of the above precautions, there are times a theft is just not avoidable.  If you do find your car stolen you will need to report it to your California Auto Insurance Company after you have reported it to the police.  When you call the police make sure you know your year, make, model and car color.  They will also ask you for your vin#, license plate #, and any unique features your car may have.  After the police have taken your report be sure to get a police case #.  You will now report the theft to your auto insurance agency.

When you call your California auto insurance Company for theft reporting be sure to have your policy # and police case # ready.  To the best of your knowledge, you will need to explain to your agent what happened.  You will also want to give them a list of any items that were in your car when it was stolen.  Go over coverage and the steps in processing your claim.   If you have rental car coverage make sure you find out how to go about renting the car and getting reimbursement.   More often than not it will be several weeks before you are able to settle the theft with your insurance company.

For many people buying car insurance can be a complicated process.   It seems everyone has a different perspective on what you should and should not have covered.  One thing to keep in mind is that you do have legal minimum requirements.  Before shopping for car insurance it is important to know what these requirements are.  California auto insurance laws are pretty straight forward.   Let’s take a look at what they are.

The first thing all drivers in California should be aware of is the Compulsory Financial Responsibility law.  This law simply states that all drivers and owners of vehicles in the state of California are financially responsible for their actions.   Therefore, if you cause an accident the financial responsibly is on your shoulders.   Because of this auto insurance laws in California require certain liabilities.   The minimum liability coverage for vehicles in California is called the 15/30/5.  For bodily injury it is required that you are covered for $15,000 for injury or death in any one incident for one individual.   Bodily Injury of $30,000 is also required for each individual incident for all individuals affected.  For property damage you are required to carry $5,000 to cover for other vehicles or property involved in a single incident.  Keep in mind that this is what is minimally required.  Now let’s take a look at the different ways you can obtain the minimum legal coverage.

There are four specific ways that you can reach the above minimum requirements if you own a vehicle in California.  The first is the obvious, to simply purchase insurance coverage for your auto from an insurance agent.  Although this is the option that most people chose, you do have some other alternatives.  You can also give $35,000 in deposit to the DMV to cover any incident that might occur.  If you are a business and carry a fleet of 25 or more cars you can show a certificate of self-insurance issued by your local DMV.  The final way to obtain coverage is to purchase a surety bond for $35,000 from any insurance agent practicing in California.

California car insurance laws do not require you to have any other coverage than what is listed above.  Therefore you do not need to purchase comprehensive coverage, uninsured motorist coverage, medical coverage or collision insurance.  However it is important to note that the minimum requirements do not protect you for anything above and beyond.  It is essential that you really analyze the other types of coverage that are out there.  Only then will you be able to determine what other options you may want to add on to your auto insurance plan.  If you are in an accident and only have the minimum coverage needed by California law,  you just might be risking financial hardship.  If you were in an accident, you would be financially responsible for anything your insurance policy would not cover.  This is why most individuals chose to purchase a more comprehensive auto insurance policy.

You should now be knowledgeable on the California auto insurance laws.  When deciding on insurance you will want to make sure that you have at the very least the minimum requirements.   Of course, you should also consider other options to further protect yourself.  You never know when you might, unfortunately find yourself in an auto accident.