The low cost auto program in California was founded in 1999 in an effort to get people that cannot afford auto insurance the ability to get insured and follow the law. This programs basic fundamental rule is to give an annual discount for those citizens that make less than a certain amount in a year. In this article you will learn a bit about the history of the low cost insurance program in California specifically, how many drivers currently are driving without coverage, and what the qualifications are to sign up for the low cost program.

All 58 counties in the state are part of the program so it does not matter where you live in California in order to qualify. Dave Jones, the insurance commissioner of California announced changes to the low cost program and that in some areas it would decrease up to nine percent across all counties. As a result of the reduction, the states average cost for the program is $257.69 per year and the premiums are now less than $350 per year. A quote from Jones’ speech says “more than 4 million cars, or 15% of the cars on California roads, don’t have coverage, if financial limitations have kept consumers from purchasing car insurance, these changes make low cost auto insurance a more viable option for uninsured drivers.”

All of this is really awesome so far, but the big question is, do you qualify for the program? Well, there are a few very concrete qualifications that are strategically placed in order to help get the people that need the most help into the program. Here are the main qualifications for the low cost auto insurance program for California.

1. You must have a good, clean driving record.
2. You must be at least 19 years of age.
3. Must be licensed continuously for the last 3 years
4. Your current vehicle must not value at more than $20,000
5. Annual income for single person is $27,925 or less
6. Annual income for couple is $37,825 or less
7. Annual income for family of four is $57,625

Are these really realistic eligibilities to meet in order to get the low cost program? If you think about it, there is a large percent of the population that still does not carry insurance on the road and puts everyone at a major risk. The income requirements are pretty fair and would most likely cover people that have lower paying jobs such as fast food restaurant workers. Vehicle being worth less than $20,000 is fair because if a person can afford a vehicle worth more than this, they should be able to afford basic liability insurance. The toughest qualification for this population of people, the 15% that are not insured, will be the “must be licensed continuously for the last 3 years.” This one will possibly cut half or more of the people from qualifying.

In this article, you have learned why the state of California has decreased its cost for the low cost car insurance program. You have also learned about the qualifications to be eligible for the program and how it affects you.