California's Low Cost Auto Insurance
California's Low Cost Auto InsuranceJuly 23, 2024 - As required by Senate Bill 1107, beginning in 2025, the mandatory limits for liability coverage for private passenger automobiles will increase. The California Low Cost Auto (CLCA) Insurance Program's limits will remain unchanged. The increase in state-wide insurance has already impacted the program, as proven by the 83% increase in active policies shown in 2023. Here's a closer look at what this means for consumers: Impact of Increased Liability Limits on Standard PoliciesStarting in 2025, all standard auto insurance policies in California will see higher minimum liability limits:
Potential Implications for Consumers
Things to ConsiderThe upcoming increase in liability limits for standard auto insurance policies in California will likely lead to higher premiums. As a result, the California Low Cost Auto Insurance Program may see a surge in interest from drivers priced out of standard policies. Maintained CLCA Eligibility and Coverage:
While these limits are lower, the program is designed to provide a basic level of coverage for those who cannot afford higher premiums. To Qualify for this Program, You Must:
This shift highlights the importance of balancing affordability with adequate protection on the road. Overall, the Department of Insurance always recommends staying protected by being insured at all times. Speak to a local agent today to discuss your options. To learn more about CLCA, visit www.mylowcostauto.com or call 866-602-8861 to speak to an expert. |
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.