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Requirements of Being Qualified for California Low-Cost Automobile Insurance

CheapCarInsuranceInIndianapolisThe State of California has insurance plans implemented in its counties including Los Angeles. For the purpose of providing California cheap car insurance to low income earners, the state legislators have created an insurance program that targets them. This program is called California Low-Cost Automobile Insurance. It was launched in 2000 in Los Angeles and San Francisco. This began functioning statewide in December 2007. In 2011, approximately 10,500 of California’s almost 24 million people have been insured through the state program insurance.

The objective of this program is to make insurance companies offer insurance on reduced rates. The policy for the liability insurance of motor vehicles costs below $290 in San Francisco and $350 in Los Angeles per anum. For those who have good driving records are given more advantages. This helps them save almost $50,000 annually. The law of California requires that the drivers must carry the minimum of $15,000 per person for the liability coverage of bodily injury, per incident $30,000 and $5,000 for the property damage. To lower the policy price, the legislators allowed carrying the lower standard limits of $10,000, $20,000 and $3,000, respectively. This helps the drivers in getting insurance for lesser rates and greater benefits. Additional requirements for the policy include:

•             The driver must be 19 years old with three year driving experience. The driving experience should be of regular and not just for pleasure.

•             The insured car must not be more than $20,000 worth. Expensive cars are insured with higher rates.

•             The applicant must not have more than one property damage in the three years of experience. Traffic violations and on fault damages are associated with the policy coverage. If the applicant is involved in more than one accident, it is anticipated that he is not a good driver and may get involved in future accidents as well.

•             The insured must not be a college student claiming for dependent on state/ income tax purposes. By this, offering him an insurance policy in LA is not an appropriate action.

•             Another vehicle cannot be insured forcibly with the current one. For insuring another vehicle a new policy has to be purchased in order to get beneficial rates.

•             Ages from 19 to 24 are linked with the highest driving risk. People under this age group are surcharged with some extra amount in order to make them eligible for the insurance.

Consultation and information gathering from the insurance company can help in finding the best policy for every individual according to their needs.

In order to compare California cheap car insurance quotes from different insurance companies, enter your ZIP code in the above bar found on this website.

Requirements for Los Angeles Cheap Car Insurance or CLCA

According to the Heal and Human Services department in California, in 2010 it has been classified that a person earning below $10,000 and families of four earning slightly above $22,000 are considered to be in the low income category. Generally, earning of low income families earning should be less than 80% of the median of the data set of income of the state. But this should not hinder the low income earners to own cars and get them insured. Good thing, the California Low Cost Automobile or CLCA program is there to aid them have LA car insurance for cheap rates. This Los Angeles Cheap Car Insurance programme aims to lower your insurance cost up to $400 a year.

There are a number of clauses that you must fulfill in order to avail this kind of car insurance.

•             The person or family applying for this insurance must not own a car worth more than $20,000.

•             Student applicants shouldn’t be dependent on their parents or anyone else who files a state or federal income tax return.

•             The policyholder should not hold any other policy of automobile liability. He or any other members of the family are not allowed to maintain any other auto insurance policy.

•             The applicant must be a good driver having not more than one moving violation or property damage where he is the one at fault.

•             Felonies or misdemeanor on his vehicle record are not allowed to be qualified for this insurance since it is a violation of vehicle code.

•             No person is allowed to have more than 2 policies under CLCA.

•             You need to be at least 19 years of age and a driving experience for 3 years.

•             If you are a of driving license holder of a foreign country, you need to have driven for not less than 18 months with the  license to drive in Canada or the United States during the given period.

•             For unmarried male drivers between 19 and 24 years old, your premium will be assessed with a 25% surcharge on it.

It is indeed important to own insurance as per the California’s compulsory financial liability law. It is also important that the purchased policy can provide the minimum liability coverage, which is 15/30/5, for injury to single or multiple persons during accident or for the property damage.

We can provide you information to get brokers that offer their services for limited income households. Just enter your ZIP code to find out if you can get Los Angeles cheap car insurance.