California’s Low Cost Auto Insurance Program

With over 75 car insurance companies to choose from, the prospect of driving in California might be overwhelming to some new residents. Luckily, the California Department of Insurance has a handy website that makes shopping for insurance easier with a handful of guides and tips that take California drivers through the process.

Today, in a time when gas prices are nearly $5.00 in some places, some people probably wish they didn't have to drive at all. For low-income good drivers, California offers the Low Cost Auto Insurance program which is designed to reduce the high number of uninsured drivers on the road. The program, which started in 2000 for qualified residents of Los Angeles County and the City and County of San Francisco, provides low-income good drivers with affordable auto insurance options. Great idea, right? Well, the state also thought so, eventually expanding the program statewide, reaching all California drivers. Eligibility is based on a few criteria:

  • Household Income
  • Good Driving Record
  • Vehicle Value at the Time of Purchase

    • A couple of downsides to the program - consumers who are eligible are NOT able to choose their own insurance company. Assignments are randomly assigned. Additionally, Physical Damage (Comprehensive & Collision) coverage IS NOT available under this Program. All in all, it's still worth a look. For questions on eligibility, California drivers are encouraged to call the California Low Cost Automobile Insurance Program directly at 866-60-AUTO-1 OR 866-602-8861.