Whether Low Cost Auto Insurance Will Remain Available to Californians Is Up in the Air

    RANCHO CUCAMONGA, CA, August 19, 2010 /24-7PressRelease/ -- The California State Legislature recently voted to approve legislation that would extend for another five years a state auto insurance program that helps financially strapped motorists in the Golden State acquire coverage. The California Low-Cost Automobile Insurance Program (CLCA) has been in place for nearly a decade and is set to expire at the beginning of 2011.

The low cost car insurance program can be a viable option for motorists who have shopped around in the open market but are not able to find coverage that can fit into a budget with little wiggle room. Those who wish to participate in the program, though, need to fit the following criteria: must be at least 19 years of age, must have been continually licensed for the previous three years, must qualify as a good driver, must have a vehicle with a current value that is $20,000 or less, and must meet income eligibility requirements specified by the California Department of Insurance. Those who do qualify for the program will be able to secure coverage for reduced rates; in 2009, the annual liability premiums available through the program ranged between $161 and $368.

Source: http://www.insurance.ca.gov/0100-consumers/0060-information-guides/0010-automobile/lca/index.cfm

The program aims to combat as serious problem in the Golden State: uninsured motorists. The Insurance Research Council estimated that, in 2007, 18 percent of California drivers hit the road without auto insurance; and the Council projected that this proportion would continue to grow through the end of the decade.

In cash-strapped times, Californians should take the financial risks involved in driving without coverage all the more seriously. Having to pay out-of-pocket for damages caused by an accident could wreak havoc on an individual's finances.

Motorists in the state who do not meet the eligibility requirements of the CLCA but still need to find a plan that can fit into a tight budget should make sure to shop around as much as possible. To do this, shoppers can go to http://www.onlineautoinsurance.com/low-cost/, where visitors can learn how to evaluate an insurer and receive a quick and free quote comparison that will provide personally tailored premium estimates from a variety of carriers.

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