Looking for low cost car insurance in California? California is not the largest state in the United States, coming in third place after Alaska and Texas, but it is the most populated state.
Looking for low cost car insurance in California? California is not the largest state in the United States, coming in third place after Alaska and Texas, but it is the most populated state. Located on the West Coast, California is home to over 36 million people, 22 million of whom are licensed drivers. That number of licensed drivers is higher than it used to be due to California laws regarding auto insurance. Read on to understand some of the basics of California car insurance coverage and then put your newly gained knowledge to use in finding low cost California car insurance coverage.
All California residents are legally required to carry minimum liability of $15,000 per person and $30,000 per accident for bodily injury. Another $5,000 is mandatory for property damage. In order to satisfy California’s Compulsory Financial Responsibility Law, you must carry proof of financial responsibility in one of four ways. These methods of providing proof include a legal and current auto insurance policy, a $35,000 surety bond, $35,000 cash paid to the Department of Motor Vehicles (DMV) as a deposit, or a DMV issued certificate of self-insurance.
There is one more proof of financial responsibility that is not addressed above, and that is proof of CLCA, the California Low Cost Automobile Insurance Program. This program provides low cost automobile insurance coverage for less than $400 per year. The basic liability under this program is $10,000 per person and $20,000 per accident for bodily injury, as well as $3,000 for property damage. Although the basic liability for CLCA is lower than the standard requirements, it legally satisfies the proof of responsibility law.
The rates for the CLCA vary by county, but have been set in such a way that this program is essentially funded by the premiums and no tax dollars are ever used for it. Administered by the California Automobile A-signed Risk Plan, the rates are reviewed periodically and adjusted as needed. The policies themselves are actually written by licensed insurance companies of California.
Premiums, which are on a per car basis, can be as low as $161 in Imperial County and can go up to $368 in Los Angeles County. The average rate falls in the mid $200 dollar range. There is an optional add-on policy for Medical Payments for $1,000 in coverage. The premiums for this coverage range from $17 to $50 with an average cost being $23. Uninsured Motorist coverage can also be obtained through the plan for an additional $22 to $73.
GST taxpayers can't claim any pending input tax credit if this return is not filed by November 30, 2024 for FY 2023-24
