Auto InsuranceQuestion 6 of 215
Which best describes the California Low Cost Automobile Insurance Program (CLCA)?
a.A federal subsidy that pays half of any policyholder's auto premium
b.A non-admitted carrier program that issues high-limit luxury auto coverage
c.A state-sponsored program that offers reduced-limit liability auto policies to income-eligible drivers
d.An auto insurance pool reserved for ride-share drivers
Explanation
The California Low Cost Auto Program (CLCA) was created under Insurance Code §11629.7 to give income-eligible good drivers an affordable liability-only policy. Limits are reduced from the standard 30/60/15 to 10/20/3, with optional medical payments and UM. Eligibility is generally household income at or below 250% of the federal poverty level, age 16 or older, valid CA driver's license, and a vehicle worth less than $25,000.
Law Reference: Cal. Ins. Code §11629.7 (CLCA)Practice all 215 questions free — no signup required.
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