California Auto Insurance Requirements

California (Ca) State Insurance

Under California law a driver must carry a proof of financial responsibility on him/her at all times. Auto insurance is one of the many forms of financial responsibility in the state; it is not the only form though. A driver has the option of having the following instead of auto insurance in California:

  • a cash deposit of $35,000 with DMV
  • a DMV issued self-insurance certificate
  •  a surety bond worth $35,000 from a company licensed to do business in California

Car insurance, however, remains the preferred form of financial responsibility as mandated by law. The state’s laws require that liability insurance be bought which covers the following:

  • $15,000 for death or injury to one person
  • $30,000 for death or injury to more than one person
  • $5,000 for damage to property

California Low Cost Automobile Insurance Program (CLCA)
Despite the fact that there are hundreds of insurance companies in the state providing attractive insurance quotes to their potential clients, buying car insurance remains an expensive option for some in California. Those who cannot afford liability insurance must nevertheless be protected under the law. Therefore to bridge the gap, the state started California’s Low Cost Automobile Insurance Program (CLCA) in 1999. The main objective of the program is to provide liability coverage at affordable rates to those who qualify for the program. The following households may qualify for the program:

  • 1 person with gross annual income of $27,925.00
  • 2 persons with gross annual income of $37,825.00
  • 3 persons with gross annual income of $47,725.00
  • 4 persons with gross annual income of $57,625.00
  • 5 persons with gross annual income of $67,525.00
  • 6 persons with gross annual income of $77,425.00
  • 7 persons with gross annual income of 87,325.00
  • 8 persons with gross annual income of $97,225.00

If you think that you qualify for California’s Low Cost Automobile Insurance Program then visit the website http://www.insurance.ca.gov/0100-consumers/0060-information-guides/0010-automobile/lca/index.cfm or call at 877-401-9550. The state does not provide its drivers with an excuse not to have financial responsibility. So have a proof of financial responsibility on you at all times.

Is there any CA dmv driver license fee waivers for low income individuals?

Unfortunately, there are no fee waivers for low income individuals who are applying for a license. You must pay the fee for a license or a license renewal. Licensing is important if you want to get behind the wheel in CA. You can pay through check, credit card, cash, or money order. To find out more, go through our pages.

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