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