Automobile Insurance

Automobile Insurance

Provider: CALIFORNIA LOW COST AUTOMOBILE INSURANCE PROGRAM

The program provides low cost automobile insurance to low-income people who live in anywhere in California. California legislation enacted this program to establish lower insurance rates for good drivers who are low-income. There are no geographic restrictions.

The program provides the minimum limited liability auto insurance as required by law, for personal vehicles only. The liability limits are $10,000 bodily injury or death per person, $20,000 bodily injury for each accident and $3,000 property damage for each accident.

This insurance will not cover damage to the applicant's vehicle. Medical payments up to $1,000 and uninsured motorist limits of $10,000/$20,000 are available for an additional charge. Applicants cannot select their own insurance company; applications are randomly assigned to participating companies.

Eligibility requirements for the program include:

- Live in California.

- Applicant is not a college student claimed as a dependent of another person for federal or state income taxes.

- Applicant's automobile has a current value of $25,000 or less (Vehicle value is determined by the DMV when assessing the vehicle license fees).

- Applicant is at least 19 years old or an emancipated minor 16 and older.

- Applicant has no vehicle code felony or misdemeanor convictions on their driving record.

- Applicant has not had an at-fault accident involving bodily injury or death in the last three years.

- Applicant has not had more than one, or both, of the following in the past three years:

1) A property damage accident only in which they were principally at fault

2) A point on their DMV record for a moving violation

- All cars in applicant's household will be insured through this program.

- Household members do not own more than 2 vehicles per person.

- The household gross annual income is 250% or less of the federal poverty level.

A household consists of all persons who occupy a housing unit and who are related by blood, marriage, adoption or guardianship. More than one family living in the same housing unit constitutes different families for eligibility purposes. APPLICATION PROCEDURE Call or visit the program's website to check eligibility, be pre-screened or to apply. Individuals are referred to local participating insurance agents for applications. Completed applications are forwarded to the CAARP administrative office where they will be assigned to insurance companies.

Applicants are required to provide at least one proof of income; see website for list of acceptable items. FEES/PAYMENT SOURCE The total premium amount per year for one vehicle ranges from $247 to $686 in Los Angeles County (premiums vary by County). Discounts may be available for consumers with good driving records for the past three years. Payments may be made in full or with 20% down and seven installment payments (transaction fees will apply).

An additional charge of 25% is added if there are one or more unmarried male drivers age 19 through 24 who reside in the household.
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