California auto insurance policyholders to see improvements in price

California auto insurance

California auto insuranceState commissioner Dave Jones announces decreases of up to 9 percent in premiums.

New and important changes to the state’s low cost California auto insurance program have been announced by Commissioner Dave Jones, who said that as of May 15, there will be a decrease of up to 9 percent to the policies across the 58 counties.

Furthermore, there has been an increase to the income eligibility caps, so that more drivers will qualify.

The hope is that more of the uninsured drivers in the state will take part in the state-sponsored program called Low Cost Automobile Insurance (CLCA), now that they can apply for it. These premium reductions will bring the average cost of a policy in the state’s program down to $257.69, and the programs will all now be less than $350 per year.

The most significant decreases will occur in Sutter, Sacramento, Contra Costa, San Joaquin, Alameda, Santa Clara, San Francisco, Marin, San Mateo, and Stanislaus. According to Commissioner Jones, More than 4 million cars, or 15 percent of the cars on California roads, don’t have insurance.” He added that “If financial limitations have kept consumers from purchasing car insurance, these changes make Low Cost Auto Insurance a more viable option for uninsured drivers.

The CLCA program was first created in 1999 by the legislature, and offers a form of liability-only California auto insurance at a rate of under $350 per year. Depending on the county in which the driver lives, that rate can also be significantly less.

In order to qualify for this vehicle coverage program, they must meet the following requirements:

• Are 19 years of age or older
• Have a good driving record
• Have had their driver’s license for a minimum of a continuous 3 years
• Own a vehicle that has a value of $20,000 or less
• Have a maximum income of $27,925 for one person, $37,825 for two people, and $57,625 for a four person family.

The low cost California auto insurance program was first created to make sure that income eligible individuals would be able to obtain liability coverage at a rate that they can afford so that they can comply with the financial responsibility laws of the state.


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