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Car Insurance Policy in California for Low Income Motorists

Car Insurance can be a costly affair, more so because of the extravagant premium rates charged by the insurance agents. However, you must have car insurance in California and when driving to other states. This is a must according to the Government’s set rules and regulations. There are special provisions made available for people who have Low Income. These are made especially keeping in mind the people who might not be able to pay heavy premiums and other related expenses.

These covers are given only to people who have a good driving record in the past. The California’s Low Cost Automobile Insurance Program (CLCA) has been especially designed to help the people with a low wage. Thus, they can afford a Car Insurance in California. This has been developed keeping in mind the fact that all drivers must be having proper insurance coverage for their vehicle. But everyone is not able to afford such costly Insurances.

There is a specific coverage known as the Liability Only Coverage. In this case, the driver has to take care of the liabilities only. This plan is handled by the Automobile Assigned Risk Plan Office of California. However, the driver must use this insurance within the state only. The payment for such insurances must be done on a yearly basis. This money is used to handle the losses and expenditure that is incurred by this program on a state wide basis. A premium surcharge of about 25% is usually charged.

There are certain pre conditions which a driver needs to fulfill in order to be eligible for this program. If the person is single, he/she should have an annual income of $26000 or less. In case of a family of two people, the total annual income must not exceed $35000. This amount is $53000 for a family of four people. In the case of the family consisting of eight people, the total income should not exceed $89000 annually. These income ranges must be strictly followed in order to be eligible for this programmed.

The driving record of the person is also taken into account before allowing him/her into this programmed. The person must have zero accidents over the past 3 years. No accidents which have caused bodily injuries of fatalities must have been committed by the person in the last three years. The person also needs to be nineteen years or older. The cost of the vehicle is also a consideration. The total valuation of the vehicle must be $20000 or more. Vehicles having a higher cost are not covered under this programmed. Also, the person must not have lost his license over the last three years. If all these conditions are met, only then is the person eligible for this scheme.

This scheme in California is only for good drivers who do not have the financial capability to pay the insurance premiums. This is a great initiative on the part of the authorities since it helps people with a low income. Thus they can drive and still have car insurance in California.