The State of California has developed this program to provide income eligible, good drivers with access to affordable automobile liability insurance. The policies are issued by California licensed insurance companies. California state law provides that a California Low Cost Automobile Insurance policy satisfies financial responsibility laws.
- This publication is part of the California s Low Cost Auto Insurance training module.
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California law requires all drivers to have auto insurance.
If you drive without insurance you could:
- Have your vehicle registration suspended.
- Have your license suspended.
- Have your car impounded.
- Be fined.
Are you driving without insurance because you can’t afford the rates?
The State of California has developed a program to help income eligible good drivers get low cost automobile insurance for under $556 a year (liability only).
Policies are issued by California licensed insurance companies. California’s Low Cost Automobile Insurance policies satisfy the state’s liability insurance requirement.
You may qualify for California’s Low Cost Automobile Insurance Program if you:
- Have a valid California driver’s license.
- Own a vehicle that is valued at $25,000 or less.
- Meet income eligibility requirements.
- Are at least 19 years of age.
There are two payment plans available:
- Full annual premium.
- Or, 20% deposit with balance to be paid in seven bi-monthly installments. (For each installment payment there will be a $4 transaction fee.)
Basic Liability Policy limits are: **
- $10,000 bodily injury or death per person
- $20,000 bodily injury or death per accident
- $3,000 property damage liability per accident
** Additional direct benefit coverage is available for an additional charge.