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What is the Low Cost Auto Insurance Program?

car insuranceThe state of California requires all drivers to carry a minimum amount of auto insurance. This protects other drivers on the road, and other legal ramifications if you’re involved in an accident. Unfortunately, many California drivers still do not maintain adequate auto insurance. This is often due to the cost of premiums.

The good news is, if you’re income-eligible and other consequences for failing to maintain auto insurance.

You may qualify for the Low Cost Insurance Auto Program if:


  • You are at least 19 years of age
  • You have been continuously licensed to drive for the previous three years
  • You have a good driving record
  • The vehicle you own is valued at $20,000 or less
  • You meet certain income requirements, based on your pay and household size

Under the Low Cost Auto Insurance Program, you still have to make premium payments. You have the option of paying the annual balance in full with a credit or debit card. Some people choose to do this when their tax refund arrives, so that they don’t have to worry about making payments through the rest of the year. Other payment options include:


  • Paying 15 percent down and then making regular payments every other month (six total payments per year)
  • Putting down a deposit of $125 and making five payments every other month
  • Putting down a deposit of $100 and making six payments every other month
  • Making a deposit of $125 and then paying off the balance within 30 days

To find out whether you qualify for California’s Low Cost Auto Insurance Program, and for an estimate of your annual auto insurance premium, visit this link.