Car Insurance for Low Income People in California

Low-income people in California who cannot afford regular car insurance policy have a special program to help them. The process is designed to find eligible people for car insurance from the low-income group. This program is called the Low Cost Auto Insurance Program. It is run by California Legislation via some car insurance companies.

Insurance companies consider details such as type of car, driving history and area of residence among other factors when determining the insurance premium rates for regular people. However, when a driver makes a limited amount of money, he or she has to live in low-income areas that have high crime rates. In such a case, even a good driver ends up paying a high premium because of the area in which they resides.

The Low Cost Auto Insurance Program is designed for safe drivers who have a clean driving record, but cannot afford good car insurance. It gives low-income drivers an opportunity to get good protection for their vehicles. However, they have to meet various requirements set by the legislation in order to eligible for this auto insurance program.

To qualify for the program, the driver must meet the standards set for age, annual income and driving status. The rules prevent fraud and limit the number of people eligible for the benefits of the program. The program covers only a part of the coverage and candidates are not allowed to get a second insurance to cover the remaining portion.

To qualify, the driver should be 19 years of age or more and should have had a driver's license for at least 3 years before applying for the program. He/she should have a good driving record that, according to the state, means having not more than 1 point and being at fault for not more than 1 accident over a span of 3 years.

A household of 4 people must not make more than $55,125 per year and a family of 8 should have an income less than $92,525 per year.

The program covers liabilities up to $15,000 for physical injury per person and $30,000 per accident. The amount of $30,000 can be used for the treatment of injuries to the other driver and passengers. $1000 is included for injuries to the policyholder or his passengers. This amount can be used with a health care program.

Many companies are allowed to participate in the Low Cost Insurance Program. If only one company were to insure everyone under this program then it would have to raise the rates for other customers to compensate for the costs of the program.

Use our free auto insurance quotes from below to check for insurance companies currently participating in California Low Cost Auto Insurance Program.

Find Insurance Companies Participating in California Low Cost Auto Insurance Program