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Is California Low Cost Insurance Program for California Low Income Earners

According to the law in California, everyone requires to insure themselves. But because of the fact that there were so many low income earners who could not afford to pay high rates of insurance premiums, they are unable to get adequate coverage and hence remain uninsured. This is precisely the reason why the state introduced the California Low Cost Automobile Insurance Program or the CLCA.

If you are successful in convincing the California cheap car insurance companies that you are unable to pay standard premiums and you require cheap car insurance in California, you are likely to qualify for this incentive. You are required to fill a questionnaire and show valid proof of your personal earnings and your expenditures etc. This step was basically taken because the Consumer Federation of America (CFA) recently discovered that more than 50% of the low income drivers of California are paying premiums which are way higher than policy holders can possibly afford given their annual per capita income.

On an average, low income drivers drive fewer miles than high income drivers. But this factor is never considered by the insurers while charting out policies. Instead what we find is a picture of pity since drivers with an annual income of less than $37,000 pay more expensive auto insurance rates than what wealthier families have to pay. This is because low income drivers live in very dense conditions in an urban environment and have low credit scores.

It is also imperative for you to have a valid driver’s license and a good driving record for you to qualify for the incentive offered by the CLCA program. You should be of at least 19 years of age and prove that you are indeed a good driver as well. A good driver is one who knows the roads well, knows the rules and regulations and does not lack concentration while driving and has self- discipline. This ensures that he has no tendency for drinking and driving. In the end, comes the program’s ‘income eligibility requirements’. To make things even simpler, you can even take an online test for companies for California cheap car insurance companies to ensure that you qualify for this incentive. The insurers are connected with the program and are not permitted to charge you any additional fees whatsoever. The company will also guide you through the entire application process and also provide you with any forms of assistance you may require.

The CLCA however does not offer any insurance for any physical damage as such. Such costs will have to be covered by the individual himself. You also need to have a driver’s license for the past three years. In the year 2000, this program was tested in the states of Los Angeles and San Francisco. The state of California realized that drivers do not carry liability insurance because of the cost factor but most of it would buy it if the cost effective cover was available within hand’s reach. You can get access to all cheap car insurance in California by simply entering your ZIP code, absolutely FREE!