LOS ANGELES, Jan. 6, 2015 /PRNewswire-HISPANIC PR WIRE/ — Reforms and enhancements to California’s Low Cost Automobile Insurance Program (CLCA) are in effect as of January 1, 2015 and will allow the program to insure more California drivers than ever.

By California law, all drivers are required to be insured, although approximately 15 percent of cars on the road do not have insurance for various reasons, the most common being cost.

Assembly Bill 60 of 2013 allows Californians to be eligible to apply for a driver’s license regardless of immigration status. With the signing of AB 60, California will welcome an estimated 1.4 million new drivers over the next three years who will seek affordable insurance options.

Senate Bill 1273 has expanded the eligibility criteria to include drivers who have not been continually licensed for the past three years. This will make many newly licensed drivers, including the 1.4 million individuals who can now be licensed under AB 60, eligible for the program.

In addition, SB 1273 has raised the limits on the value of an automobile that can be insured through the program from $20,000 to $25,000 to allow more Californians to qualify for the coverage.

“The expansion of the Low Cost Auto program is a win for all Californians,” said Commissioner Dave Jones. “More California drivers now qualify for low cost auto insurance which means more insured vehicles on our roads and greater safety for all California drivers.”

About California’s Low Cost Auto Insurance (CLCA)
CLCA was established by the Legislature in 1999 and exists (pursuant to California Insurance Code Section 11629.7) as a program designed to provide income-eligible, good drivers with liability insurance protection at affordable rates as a way to meet California’s mandatory auto insurance law. The CLCA program is brought to you by the California Department of Insurance and is administered by the California Automobile Assigned Risk Plan (CAARP). Learn more at www.mylowcostauto.com