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The California Low-Cost Auto Insurance program makes an inexpensive insurance policy available to qualifying, low-income drivers. The program is a result of a 1999 California law — SB 171 (authored by Senator Martha Escutia) — developed and sponsored by Consumer Watchdog (formerly The Foundation for Taxpayer and Consumer Rights).

California Law requires that all drivers be insured, but, for many motorists, the cost of auto insurance is too high for them to maintain coverage. This program offers a very inexpensive, basic auto insurance policy to low-income drivers (those with income at or below 250% of the poverty level) with good driving records.

The Low-Cost policy is now available in all California counties for less than $400 per year. Download a list of the premiums throughout the state here or visit the California Dep’t of Insurance webpage for the regularly updated information.

It is important to note that in order to keep the price low, these policies offer only basic coverage required by law.  Through the program, motorists can purchase some additional coverages (uninsured motorist and medical payments coverage) for an additional charge.

To be eligible for the program you must:

• Meet the program’s low-income requirements (for example, 1 person = $26,000, 2 persons = $35,000, 4 persons = $53,000)
• Meet
  the good driver standard (no more than one at-fault property damage
  only accident or more than one point for moving violation in the past
  three years)
• Have not had an at fault accident involving bodily injury or death in the past 3 years.
• Be at least 19 years old
• Have been continuously licensed to drive for the past three years
• Have a vehicle valued at less than the $20,000

This and more detailed information is  about the California Low-Cost Auto Insurance program is available from the California Department of Insurance.