CALIFORNIA LOW COST AUTOMOBILE INSURANCE PROGRAM
FREQUENTLY
ASKED QUESTIONS
WHAT IS IT?
A program established by the California Legislature that provides
low-income good drivers who live in California with low cost auto insurance
coverage. This pilot program became effective on July 1, 2000, for
qualified residents of Los Angeles County and the City and County of San
Francisco.
§
On
April 1, 2006, the Program was expanded
to qualified residents of Alameda, Fresno, Orange, Riverside, San Bernardino and
San Diego counties.
§
On June 1, 2006, eight additional counties were added to the Program:
Contra Costa, Imperial, Kern, Sacramento, San Joaquin, San Mateo, Santa Clara
and Stanislaus, for a total of sixteen eligible counties.
§
On March 30, 2007, the six additional counties of Merced, Monterey, Santa
Barbara, Sonoma, Tulare and Ventura were added for a total of 22 eligible
counties.
§
On October 1, 2007, 20 new counties were added: Amador, Butte,
Calaveras, El Dorado, Humboldt, Kings, Lake, Madera, Marin, Mendocino, Napa,
Placer, San Benito, Santa Cruz, Shasta, Solano, Sutter, Tuolumne, Yolo and Yuba
will join the current counties of Alameda, Contra Costa, Fresno, Imperial, Kern,
Los Angeles, Merced, Monterey, Orange, Riverside, Sacramento, San Bernardino,
San Diego, San Francisco, San Joaquin, San Mateo, Santa Barbara, Santa Clara,
Sonoma, Stanislaus, Tulare and Ventura.
§
On
December
10, 2007,
the final 16 counties of Alpine, Colusa, Del Norte, Glenn, Inyo, Lassen,
Mariposa, Modoc, Mono, Nevada, Plumas, San Luis Obispo, Sierra, Siskiyou, Tehama
and Trinity were added, making it a statewide Program
The California Low Cost Automobile Insurance Program (LCA) is
administered by the California Automobile Assigned Risk Plan (CAARP).
WHO IS ELIGIBLE?
Only low-income good drivers are eligible for this coverage.
Applicants also must reside in one of the approved counties, and the current
value of their vehicle cannot exceed $20,000. Eligibility is based on the
household’s gross annual income which must be 250% or less of the federal
poverty level. See chart below.
|
APPLICANT INCOME ELIGIBILITY CHART |
|
Number in Household * |
Poverty Income Level |
250% of Federal Poverty Level |
|
1 |
$10,830 |
$27,075 |
|
2 |
$14,570 |
$36,425 |
|
3 |
$18,310 |
$45,775 |
|
4 |
$22,050 |
$55,125 |
|
5 |
$25,790 |
$64,475 |
|
6 |
$29,530 |
$73,825 |
|
7 |
$33,270 |
$83,175 |
|
8 |
$37,010 |
$92,525 |
|
For households with more than 8 members, add $3,740 for each additional
member to the figure shown in the Poverty Guideline. Multiply the
result by 250%.
* A “Household” is all persons who occupy a housing unit and who are
related by blood, marriage,
registered
domestic partnership,
adoption or guardianship (i.e., members of one family). If more than
one family is living in the same housing unit, they constitute different
families for eligibility purposes even though they reside at the same
address
The Federal Poverty Guidelines are released annually by the
Department of Health and Human Services. |
WHAT IS A “GOOD DRIVER”?
§
Applicant is at least 19 years of age and has been continuously licensed to
drive for the past 3 years.*
§
Applicant has no Vehicle Code felony or misdemeanor convictions on their driving
record.
§
Applicant has not had an at fault accident involving bodily injury or death in
the past 3 years.
§
Applicant has not had more than one, or both, of the following in the past 3
years:
o
A property damage only accident in which they were principally at
fault, or
o
A point for a moving violation.
§
Applicant is not a college student claimed as dependent of for federal/state
income tax purposes.
o
Individuals who were previously licensed in another country other
than the U.S. or Canada and can demonstrate that they have been continuously
licensed for 18 months in the U.S. or Canada, are also eligible.
WHAT COVERAGES ARE AVAILABLE?
Liability limits of $10,000 bodily injury or death per person, $20,000 bodily
injury for each accident and $3,000 property damage for each accident. These
limits will satisfy the state’s current financial responsibility laws. Medical
Payments Coverage at $1,000 per person, and Uninsured Motorist Bodily Injury at
limits of $10,000/$20,000, are also available at the option of the applicant.
WHAT DOES IT COST?
|
California Low Cost
Automobile Insurance Program (LCA) |
|
Annual Premium per Vehicle |
|
County |
Liability |
Uninsured Motorist Bodily Injury * |
Medical Payments * |
Youthful Male Surcharge ^ |
|
Alameda |
$272.00 |
$28.00 |
$24.00 |
$340.00 |
|
Alpine |
$274.00 |
$40.00 |
$23.00 |
$342.50 |
|
Amador |
$262.00 |
$37.00 |
$25.00 |
$327.50 |
|
Butte |
$233.00 |
$32.00 |
$23.00 |
$291.25 |
|
Calaveras |
$232.00 |
$38.00 |
$22.00 |
$290.00 |
|
Colusa |
$252.00 |
$38.00 |
$23.00 |
$315.00 |
|
Contra Costa |
$267.00 |
$28.00 |
$22.00 |
$333.75 |
|
Del Norte |
$243.00 |
$38.00 |
$22.00 |
$303.75 |
|
El Dorado |
$263.00 |
$34.00 |
$20.00 |
$328.75 |
|
Fresno |
$258.00 |
$42.00 |
$30.00 |
$322.50 |
|
Glenn |
$255.00 |
$37.00 |
$23.00 |
$318.75 |
|
Humboldt |
$237.00 |
$34.00 |
$22.00 |
$296.25 |
|
Imperial |
$161.00 |
$32.00 |
$21.00 |
$201.25 |
|
Inyo |
$253.00 |
$38.00 |
$22.00 |
$316.25 |
|
Kern |
$254.00 |
$32.00 |
$29.00 |
$317.50 |
|
Kings |
$222.00 |
$35.00 |
$23.00 |
$277.50 |
|
Lake |
$217.00 |
$34.00 |
$22.00 |
$271.25 |
|
Lassen |
$269.00 |
$39.00 |
$22.00 |
$336.25 |
|
Los Angeles |
$368.00 |
$73.00 |
$50.00 |
$460.00 |
|
Madera |
$223.00 |
$37.00 |
$21.00 |
$278.75 |
|
Marin |
$274.00 |
$33.00 |
$23.00 |
$342.50 |
|
Mariposa |
$251.00 |
$37.00 |
$23.00 |
$313.75 |
|
Mendocino |
$224.00 |
$35.00 |
$21.00 |
$280.00 |
|
Merced |
$238.00 |
$36.00 |
$23.00 |
$297.50 |
|
Modoc |
$258.00 |
$39.00 |
$24.00 |
$322.50 |
|
Mono |
$259.00 |
$40.00 |
$23.00 |
$323.75 |
|
Monterey |
$198.00 |
$31.00 |
$25.00 |
$247.50 |
|
Napa |
$243.00 |
$34.00 |
$22.00 |
$303.75 |
|
Nevada |
$251.00 |
$35.00 |
$22.00 |
$313.75 |
|
Orange |
$295.00 |
$37.00 |
$27.00 |
$368.75 |
|
Placer |
$284.00 |
$33.00 |
$21.00 |
$355.00 |
|
Plumas |
$241.00 |
$40.00 |
$22.00 |
$301.25 |
|
Riverside |
$262.00 |
$34.00 |
$17.00 |
$327.50 |
|
Sacramento |
$361.00 |
$45.00 |
$29.00 |
$451.25 |
|
San Benito |
$253.00 |
$36.00 |
$21.00 |
$316.25 |
|
San Bernardino |
$274.00 |
$43.00 |
$19.00 |
$342.50 |
|
San Diego |
$264.00 |
$26.00 |
$20.00 |
$330.00 |
|
San Francisco |
$302.00 |
$31.00 |
$30.00 |
$377.50 |
|
San Joaquin |
$278.00 |
$35.00 |
$28.00 |
$347.50 |
|
San Luis Obispo |
$226.00 |
$32.00 |
$20.00 |
$282.50 |
|
San Mateo |
$287.00 |
$26.00 |
$21.00 |
$358.75 |
|
Santa Barbara |
$231.00 |
$31.00 |
$22.00 |
$288.75 |
|
Santa Clara |
$261.00 |
$22.00 |
$17.00 |
$326.25 |
|
Santa Cruz |
$213.00 |
$32.00 |
$20.00 |
$266.25 |
|
Shasta |
$242.00 |
$34.00 |
$22.00 |
$302.50 |
|
Sierra |
$272.00 |
$40.00 |
$23.00 |
$340.00 |
|
Siskiyou |
$216.00 |
$38.00 |
$22.00 |
$270.00 |
|
Solano |
$271.00 |
$31.00 |
$24.00 |
$338.75 |
|
Sonoma |
$251.00 |
$29.00 |
$23.00 |
$313.75 |
|
Stanislaus |
$307.00 |
$34.00 |
$24.00 |
$383.75 |
|
Sutter |
$279.00 |
$36.00 |
$25.00 |
$348.75 |
|
Tehama |
$235.00 |
$37.00 |
$22.00 |
$293.75 |
|
Trinity |
$253.00 |
$38.00 |
$22.00 |
$316.25 |
|
Tulare |
$209.00 |
$35.00 |
$21.00 |
$261.25 |
|
Tuolumne |
$249.00 |
$37.00 |
$22.00 |
$311.25 |
|
Ventura |
$267.00 |
$33.00 |
$19.00 |
$333.75 |
|
Yolo |
$257.00 |
$35.00 |
$22.00 |
$321.25 |
|
Yuba |
$260.00 |
$36.00 |
$26.00 |
$325.00 |
|
Rates Effective 05-11-09 |
|
* Optional Coverages |
|
^ Single Male Applicant /Operator 19-24
years of age |
WHAT ARE THE PAYMENTS PLANS?
|
PAYMENT OPTIONS |
| |
Full Annual Premium |
| |
$125 Deposit with balance to be paid within 30 days. |
|
Option 1 |
$100 Deposit with balance to be paid in 6 bi-monthly installments.* |
|
Option 2 |
$125 Deposit with balance to be paid in 5 bi-monthly installments.* |
|
Option 3 |
15% Deposit with balance to be paid in 6 bi-monthly installments.* |
|
* There will be a $4.00 per installment fee for Payment Options 1,
2 & 3. Bi-monthly means every other month a payment is due.
No Outside Premium
Financing is allowed! |
HOW DOES ONE APPLY?
If you meet the eligibility requirements, contact any insurance
agent and ask if they are a Certified Producer with the California
Automobile Assigned Risk Plan/California Low Cost Automobile Insurance Program.
If they are certified, they can help you in applying for automobile
liability insurance through the California Low Cost Automobile Insurance
Program. This individual can assist you in completing an application and tell
you about the payment plan options.
-
If you need a list of certified producers in your area, contact CAARP’s Customer
Service Department at their toll free number
866-602-8861.
-
Once you find a certified producer in your area, they will help you complete an
application for insurance, plus collect the required deposit and documents
needed for this Program.
-
Once the producer has completed the application, they will mail everything to
the CAARP office in San Francisco.
WHAT DO I NEED TO GIVE MY AGENT?
Applicants
will have to provide income verification in the form of one of the following:
-
A copy of their federal or state income tax return if filed in the previous
calendar year, or if filed in the current year, whichever is most recent, or
-
Other reliable evidence from a governmental agency or government means tested
program verifying the applicant’s annual gross income.
Applicants must also provide:
-
Check or money order made payable to CAARP/CA Low Cost Program
-
Copy of the driver’s license for ALL
drivers in the household
-
Copy of the vehicle registration or proof of vehicle ownership.
-
Signed Privacy Waiver Form for each member of the household 18 years of age or
older. This form ensures that your total household income can be verified.
NOTE
You can pay
CAARP/Low Cost Program directly. Your agent/producer does not have to submit
their check on your behalf.
CAN THE PRODUCER CHARGE EXTRA FEES?
No.
Per 11624.5 of the California Insurance Code, producers
CANNOT
charge their clients ANY fee when submitting an application through the
California Low Cost Automobile Insurance Program. The producer will be paid
commission by the assigned insurance company. This means no “broker fees”,
“paperwork fees”, or MVR fees can be charged.
WHEN IS COVERAGE EFFECTIVE?
Only Certified Producers may submit applications to
the California Low Cost Automobile Insurance Program and obtain immediate
coverage through CAARP’s
Electronic Effective Date Procedure (EEDP) or through
EASi.
Proposed
effective dates are only honored if the producer complies with all of the rules
governing the EEDP and/or
EASi.
Applications submitted without using the EEDP or
EASi
will become effective at 12:01 A.M. the day after receipt in CAARP’s office.
Future effective dates are also available via the EEDP and
EASi.
To receive a future effective date, CAARP must receive the application before
that requested date.
HOW LONG WILL IT TAKE BEFORE I KNOW I AM INSURED?
Once CAARP receives the application with attached documents and deposit, it will
determine whether or not the applicant is eligible per the requirements of the
Program. There are 3 possible scenarios:
1.
Applicant is determined to be eligible and application with deposit
is assigned to an insurance company. Assignment notices are mailed to both
producer and inured. The Insurance Company receives the application, attached
documents and deposit.
2.
Applicant is temporarily determined to be eligible, but required
information/documentation is missing. Application is RETURNED to the
producer to complete or attach the missing information within 10 working days.
If missing information is returned within the 10-day time span and satisfies the
requirements of the Program, the application will be assigned.
3.
Applicant is determined to be not eligible and application for
insurance is REJECTED. Both applicant and producer will be notified in
writing with the reason(s) for rejection and the application with deposit will
be returned to the producer of record. THERE WILL BE NO COVERAGE. Note:
If producer uses
EASi, the system will determine immediately whether the applicant is
eligible.
WHEN CAN A
COMPANY CANCEL?
Like with any insurance, the Low Cost policy can be canceled if the applicant
fails to pay their premiums, or if the company determines there is any fraud or
misrepresentation.
CAN I CHOOSE THE ASSIGNED COMPANY?
No. Applications are assigned via a random assignment process.
CAN THE PRODUCER RETAIN COMMISSION?
No. The producer is required to send the application with the
appropriate gross deposit premium to the Plan. The assigned
insurance company will pay the producer his/her commission upon issuance of the
policy.
WHERE DO I REPORT A CLAIM?
Each company sends information with every policy about how and
where to report claims. Contact the company directly as soon as information
about a claim is known.
WHAT SHOULD I DO IF I HAVE A PROBLEM?
If you experience a problem with the assigned company or your
producer regarding your insurance, it is recommended to call the company or
producer directly to try and solve the problem. If the problem cannot be
resolved, contact CAARP/LCA Program at 866-602-8861 and a customer service
representative will try to assist you.
Se Habla Espanol !
WHAT ELSE DO I NEED TO KNOW ABOUT THIS PROGRAM?
§
There is a maximum of one car per Low Cost Auto Insurance policy. (You cannot
add other cars to an existing policy.)
§
Only two Low Cost policies can be purchased per person, per household.
§
The policy term is for one year with annual renewals. If the applicant still
meets all of the eligibility requirements at renewal, the company must
offer a renewal.
§
A Low Cost policyholder cannot purchase additional liability insurance coverage
for their covered vehicle(s), but they can purchase physical damage coverage
elsewhere.
|
