August 30, 2024 • 9 mins
Aired August 25, 2024: In this show, EJ talks to Amy Nungaray about low cost auto insurance in California.
California Law requires that all drivers of vehicles within the State maintain evidence of financial responsibility. California's Low Cost Automobile Program (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 persons with liability insurance protection at affordable rates as a way to meet California's financial responsibility laws.
However, too many income eligible drivers remain uninsured because the costs of standard insurance premiums are beyond their financial reach. Learn about affordable solutions that may help protect you, your friends, family and other drivers on the road.
Effective January 01, 2015 a new law, SB 1273 passed by the Governor on September 19, 2014, provides an exception to the three-year continuously licensed requirement to allow drivers with less than 3 years verifiable driving experience to participate in the program and increased vehicle values from $20,000 to $25,000. For more information on the CLCA program please visit: www.mylowcostauto.com.
California Law requires that all drivers of vehicles within the State maintain evidence of financial responsibility. California's Low Cost Automobile Program (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 persons with liability insurance protection at affordable rates as a way to meet California's financial responsibility laws.
However, too many income eligible drivers remain uninsured because the costs of standard insurance premiums are beyond their financial reach. Learn about affordable solutions that may help protect you, your friends, family and other drivers on the road.
Effective January 01, 2015 a new law, SB 1273 passed by the Governor on September 19, 2014, provides an exception to the three-year continuously licensed requirement to allow drivers with less than 3 years verifiable driving experience to participate in the program and increased vehicle values from $20,000 to $25,000. For more information on the CLCA program please visit: www.mylowcostauto.com.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome back to I heard so Cala. My name is EJ.
And on the phone with me I have Amy Nungary
from California's Low Cost Auto Insurance. Amy, thank you so
much for joining us.
Speaker 2 (00:09):
Of course, thank you for having me.
Speaker 1 (00:11):
Of course, So let's jump into it and talk about
what is your role with the California Department of Insurance.
Speaker 2 (00:15):
So I am the Specialized Program Manager of the California
Low Cost Auto Insurance Program, otherwise known as CLCA. I
direct the vision for the statewide marketing activities for the
program and the contractors that do the outreach and marketing nice.
Speaker 1 (00:31):
So what is California's Low Cost Auto Insurance and why
is it important?
Speaker 2 (00:35):
So CLCA was created by the California legislator in nineteen
ninety nine as a way to provide income eligible good
drivers with liability insurance protection at affordable rates, so that
way all drivers can meet California's mandatory auto insurance loss.
It's important because it offers one affordable coverage so those
that are in low income can have access to affordable
(00:56):
auto insurance, helping them comply with the state's mandatory insurance
law without facing financial hardships. Another reason is legal compliance
always important. By offering low cost insurance options, this helps
drivers stay legally insured, which reduces the number of uninsured
motorists on the road that enhances overall road safety. Another
(01:16):
one is financial protection. The program ensures that low income
drivers have financial protection in cases an accident. No one
loves an accident, but they do happen, so there prevents
the individuals from facing severe financial consequences due to the
lack of coverage. And lastly, it's access to essential services.
So having insurance allows individuals to drive legally, which is
(01:38):
often essential for maintaining employment, accessing education, and fulfilling family responsibilities.
Speaker 1 (01:45):
Heymy, you know what's interesting. I feel like a lot
of people don't realize that when you think about it,
like essential services and things of the like. And also
auto insurance is a billion dollars, I feel like, So
the fact that you guys are doing this and thinking
about people who maybe who can't afford like like a
different auto policy, the fact that you are doing that,
I think that's amazing.
Speaker 2 (02:05):
Yeah, I really appreciate that the state just wants to
make sure that there are options out there, and I'm
sure that every person can find themselves in a situation
they may have not expected. So we want to make
sure that everyone's just legally compliant.
Speaker 1 (02:18):
Absolutely, do me a favorite and tell me what are
the penalties for driving without insurance?
Speaker 2 (02:22):
So if a driver does not have insurance at the
time of a moving violation or accident, they can be
fined and possibly have their vehicle registration suspended, which then
can lead to a vehicle being impounded. Also, if someone
is involved in an accident and they don't have insurance,
they can be personally liable for all the damages. Oh really,
it's not a fun position to be in, so try
(02:43):
everything within our means to avoid that.
Speaker 1 (02:45):
Absolutely, So I think the most important question of the
hour is who is eligible for CLCI.
Speaker 2 (02:52):
So to be eligible for the program, applicants must have
a valid California driver's license, own a vehicle valued at
twenty five thousand or less. They have to meet income
eligibility guidelines. They have to be at least sixteen years
of age, and also they have to have a good
driving record.
Speaker 1 (03:09):
A good driving record. Where can people find more information?
Speaker 2 (03:12):
So they can find information at mylow Cost Auto dot
com or they can call eight six six six to
oh two eight six.
Speaker 1 (03:21):
One my Low Cost Auto dot Com.
Speaker 2 (03:24):
Yes, and when you go onto the website you can
just we have a rate calculator right there on the
landing page. You just tell what you answer four questions
and you're able to find what your rate would be
for the entire year right there.
Speaker 1 (03:37):
And then that's amazing. So there are tiers to the
income requirement, Yes, there are.
Speaker 2 (03:42):
Per SE, so it is an income eligibility guideline. And
right on the website too, you put how many individuals
are in your household and it'll let you know what
the max threshold is, so you're able to find that
out online as well.
Speaker 1 (03:56):
At my Low Costauto dot Com.
Speaker 2 (04:00):
That's correct.
Speaker 1 (04:01):
What does CLCA cover So.
Speaker 2 (04:04):
It is liability only auto insurance that makes the state's
financial responsibility laws. So basic liability policy limits are ten
thousand bodily injury or death per person, twenty thousand bodily
injury or death per accident, in three thousand property damage
liability per accident. For an additional charge of thirty seven
dollars to one hundred and seven per year. Consumers can
(04:25):
add medical payments per person, uninsured motorists, bodily injury per
person or uninsured motors bodily injury per accident if you
want to make a career that we don't offer comprehensive
or collision coverage, which is coverage that will repair the
driver's vehicle after an accident. But this coverage can be
purchased from an insurance agent.
Speaker 1 (04:45):
How much does it cost.
Speaker 2 (04:46):
So it varies Pike County, it ranges from two hundred
and thirty two dollars to nine hundred and thirty two. Okay,
there are just yeah interests me with the pricing that's
going out there, this is a great deal, so there
are discounts. Also, if the consumer has been a licensed
driver for three years with a good driving record.
Speaker 1 (05:05):
Amazing, amazing. Can you break it down for the cost
of maybe la Orange County and Ventora counties? Do you
have that offhand?
Speaker 2 (05:12):
I can tell you as I mentioned for if you
go online you just have to answer four. I can
say that it does average anywhere between four hundred and
one dollars all the way up to the nine hundred
and thirty two. There are just some factors that will
determine it. But as a reminder, this is for the
entire year, so just divide that by twelve to have
(05:34):
an idea about it.
Speaker 1 (05:35):
Will be Oh so that let me tell you that
is absolutely a steal for the entire nine hundred and
thirty two dollars for the entire year, two hundred and
thirty two dollars. That is a deal.
Speaker 2 (05:46):
You hear me, I hear you. So that just we
just want to make sure that everyone just has that
basic liability. I always say that something is better than nothing.
Speaker 1 (05:56):
Absolutely absolutely. The website once again is my local auto
dot com?
Speaker 2 (06:01):
Right, that's correct. Or if you just don't want to
deal with anyone, you can also go online find an
agent that has the ability to give you this policy.
So if you prefer in person, that's another avenue you
can take.
Speaker 1 (06:16):
Amy tell Us who offers the insurance.
Speaker 2 (06:19):
So bear with me here. The process for the program
is that you are assigned. Once the consumer submits their application,
then a representative or their insurance agent will confirm all
the information obtain the proof of income. Once the payment
is processed online or over the phone, the consumer will
sign the documents. A temporary insurance card will be issued
(06:41):
representing the consumer's proof of insurance, and within forty five days,
an insurance carrier will be assigned to manage the policy.
So the current carriers are APESO or one of the
too limited assignment distribution insurance carriers which are a twenty
first century insurance company or integone insurance company.
Speaker 1 (07:00):
So cost auto dot Com make sure we're logging on
for more info. Let people know. How can people get
more information? How can people apply?
Speaker 2 (07:07):
Absolutely? So you can go online to my low cost
auto dot com. You do a seven questionnaire to see
if you qualify, and once you complete the application process,
this will go. It will be everything I mentioned beforehand
and it can all be done online or they can
meet with a local insurance agent at no cost. Also,
don't free. You do have an option of calling eight
(07:29):
six six six oh two eight eight six ones.
Speaker 1 (07:32):
Okay, amazing. Let me ask this question. What sort of
proof of household income does someone need to provide you? Guys,
So any of the.
Speaker 2 (07:40):
Following would be acceptable. Feederal or state tax return, CalFresh
EBD card, notification letter from caltworks, the utility bill showing
someone is receiving California Lifeline verification of low income home
energy assistance. There's a good amount of different documentation that
we will take just to show where you can currently
are income wise so if you need assistance, we try
(08:05):
to maneuver and help out as much as possible. We'll
work with you. But all that information can also be
found online.
Speaker 1 (08:12):
How many vehicles can someone ensure with the program?
Speaker 2 (08:16):
So every qualified consumer is allowed up to two low
cost policies under the program guideline. In fact, all vehicles
registered to you as application as applicant with max two
must be in roles in CLCA.
Speaker 1 (08:29):
Absolutely more information, of course, you can check out my
low cost auto dot com or you can call it
eight six six six so two eight eight six y one.
Is there any information, Amy that we left out that
you want to get across.
Speaker 2 (08:40):
Nope, that's it. I just really appreciate your.
Speaker 1 (08:42):
Time Major absolutely, thank you so much for joining us.
I feel like this program is amazing. Also, the numbers
that we were given out throughout the show What's for
the year, I think that's amazing. This is a still, Amy,
I don't think you understand. Well, you probably do understand,
because this is what you do day in and day out,
but I feel like these numbers are as still and
people need to take advantage of this program, don't you think?
Speaker 2 (09:02):
Definitely so, especially for those who are currently driving without
any insurance. Please just know that there are options out
there and we're here to help.
Speaker 1 (09:11):
Is that common people driving without insurance? Yes, it is okay,
all right, well, there's no need for that. My low
Costsauto dot com or you can call it eight six
six six oh two eight eight six ' one Amy.
Thank you so much for joining us.
Speaker 2 (09:27):
Of course, thank you for having me
Welcome back to I heard so Cala. My name is EJ.
And on the phone with me I have Amy Nungary
from California's Low Cost Auto Insurance. Amy, thank you so
much for joining us.
Speaker 2 (00:09):
Of course, thank you for having me.
Speaker 1 (00:11):
Of course, So let's jump into it and talk about
what is your role with the California Department of Insurance.
Speaker 2 (00:15):
So I am the Specialized Program Manager of the California
Low Cost Auto Insurance Program, otherwise known as CLCA. I
direct the vision for the statewide marketing activities for the
program and the contractors that do the outreach and marketing nice.
Speaker 1 (00:31):
So what is California's Low Cost Auto Insurance and why
is it important?
Speaker 2 (00:35):
So CLCA was created by the California legislator in nineteen
ninety nine as a way to provide income eligible good
drivers with liability insurance protection at affordable rates, so that
way all drivers can meet California's mandatory auto insurance loss.
It's important because it offers one affordable coverage so those
that are in low income can have access to affordable
(00:56):
auto insurance, helping them comply with the state's mandatory insurance
law without facing financial hardships. Another reason is legal compliance
always important. By offering low cost insurance options, this helps
drivers stay legally insured, which reduces the number of uninsured
motorists on the road that enhances overall road safety. Another
(01:16):
one is financial protection. The program ensures that low income
drivers have financial protection in cases an accident. No one
loves an accident, but they do happen, so there prevents
the individuals from facing severe financial consequences due to the
lack of coverage. And lastly, it's access to essential services.
So having insurance allows individuals to drive legally, which is
(01:38):
often essential for maintaining employment, accessing education, and fulfilling family responsibilities.
Speaker 1 (01:45):
Heymy, you know what's interesting. I feel like a lot
of people don't realize that when you think about it,
like essential services and things of the like. And also
auto insurance is a billion dollars, I feel like, So
the fact that you guys are doing this and thinking
about people who maybe who can't afford like like a
different auto policy, the fact that you are doing that,
I think that's amazing.
Speaker 2 (02:05):
Yeah, I really appreciate that the state just wants to
make sure that there are options out there, and I'm
sure that every person can find themselves in a situation
they may have not expected. So we want to make
sure that everyone's just legally compliant.
Speaker 1 (02:18):
Absolutely, do me a favorite and tell me what are
the penalties for driving without insurance?
Speaker 2 (02:22):
So if a driver does not have insurance at the
time of a moving violation or accident, they can be
fined and possibly have their vehicle registration suspended, which then
can lead to a vehicle being impounded. Also, if someone
is involved in an accident and they don't have insurance,
they can be personally liable for all the damages. Oh really,
it's not a fun position to be in, so try
(02:43):
everything within our means to avoid that.
Speaker 1 (02:45):
Absolutely, So I think the most important question of the
hour is who is eligible for CLCI.
Speaker 2 (02:52):
So to be eligible for the program, applicants must have
a valid California driver's license, own a vehicle valued at
twenty five thousand or less. They have to meet income
eligibility guidelines. They have to be at least sixteen years
of age, and also they have to have a good
driving record.
Speaker 1 (03:09):
A good driving record. Where can people find more information?
Speaker 2 (03:12):
So they can find information at mylow Cost Auto dot
com or they can call eight six six six to
oh two eight six.
Speaker 1 (03:21):
One my Low Cost Auto dot Com.
Speaker 2 (03:24):
Yes, and when you go onto the website you can
just we have a rate calculator right there on the
landing page. You just tell what you answer four questions
and you're able to find what your rate would be
for the entire year right there.
Speaker 1 (03:37):
And then that's amazing. So there are tiers to the
income requirement, Yes, there are.
Speaker 2 (03:42):
Per SE, so it is an income eligibility guideline. And
right on the website too, you put how many individuals
are in your household and it'll let you know what
the max threshold is, so you're able to find that
out online as well.
Speaker 1 (03:56):
At my Low Costauto dot Com.
Speaker 2 (04:00):
That's correct.
Speaker 1 (04:01):
What does CLCA cover So.
Speaker 2 (04:04):
It is liability only auto insurance that makes the state's
financial responsibility laws. So basic liability policy limits are ten
thousand bodily injury or death per person, twenty thousand bodily
injury or death per accident, in three thousand property damage
liability per accident. For an additional charge of thirty seven
dollars to one hundred and seven per year. Consumers can
(04:25):
add medical payments per person, uninsured motorists, bodily injury per
person or uninsured motors bodily injury per accident if you
want to make a career that we don't offer comprehensive
or collision coverage, which is coverage that will repair the
driver's vehicle after an accident. But this coverage can be
purchased from an insurance agent.
Speaker 1 (04:45):
How much does it cost.
Speaker 2 (04:46):
So it varies Pike County, it ranges from two hundred
and thirty two dollars to nine hundred and thirty two. Okay,
there are just yeah interests me with the pricing that's
going out there, this is a great deal, so there
are discounts. Also, if the consumer has been a licensed
driver for three years with a good driving record.
Speaker 1 (05:05):
Amazing, amazing. Can you break it down for the cost
of maybe la Orange County and Ventora counties? Do you
have that offhand?
Speaker 2 (05:12):
I can tell you as I mentioned for if you
go online you just have to answer four. I can
say that it does average anywhere between four hundred and
one dollars all the way up to the nine hundred
and thirty two. There are just some factors that will
determine it. But as a reminder, this is for the
entire year, so just divide that by twelve to have
(05:34):
an idea about it.
Speaker 1 (05:35):
Will be Oh so that let me tell you that
is absolutely a steal for the entire nine hundred and
thirty two dollars for the entire year, two hundred and
thirty two dollars. That is a deal.
Speaker 2 (05:46):
You hear me, I hear you. So that just we
just want to make sure that everyone just has that
basic liability. I always say that something is better than nothing.
Speaker 1 (05:56):
Absolutely absolutely. The website once again is my local auto
dot com?
Speaker 2 (06:01):
Right, that's correct. Or if you just don't want to
deal with anyone, you can also go online find an
agent that has the ability to give you this policy.
So if you prefer in person, that's another avenue you
can take.
Speaker 1 (06:16):
Amy tell Us who offers the insurance.
Speaker 2 (06:19):
So bear with me here. The process for the program
is that you are assigned. Once the consumer submits their application,
then a representative or their insurance agent will confirm all
the information obtain the proof of income. Once the payment
is processed online or over the phone, the consumer will
sign the documents. A temporary insurance card will be issued
(06:41):
representing the consumer's proof of insurance, and within forty five days,
an insurance carrier will be assigned to manage the policy.
So the current carriers are APESO or one of the
too limited assignment distribution insurance carriers which are a twenty
first century insurance company or integone insurance company.
Speaker 1 (07:00):
So cost auto dot Com make sure we're logging on
for more info. Let people know. How can people get
more information? How can people apply?
Speaker 2 (07:07):
Absolutely? So you can go online to my low cost
auto dot com. You do a seven questionnaire to see
if you qualify, and once you complete the application process,
this will go. It will be everything I mentioned beforehand
and it can all be done online or they can
meet with a local insurance agent at no cost. Also,
don't free. You do have an option of calling eight
(07:29):
six six six oh two eight eight six ones.
Speaker 1 (07:32):
Okay, amazing. Let me ask this question. What sort of
proof of household income does someone need to provide you? Guys,
So any of the.
Speaker 2 (07:40):
Following would be acceptable. Feederal or state tax return, CalFresh
EBD card, notification letter from caltworks, the utility bill showing
someone is receiving California Lifeline verification of low income home
energy assistance. There's a good amount of different documentation that
we will take just to show where you can currently
are income wise so if you need assistance, we try
(08:05):
to maneuver and help out as much as possible. We'll
work with you. But all that information can also be
found online.
Speaker 1 (08:12):
How many vehicles can someone ensure with the program?
Speaker 2 (08:16):
So every qualified consumer is allowed up to two low
cost policies under the program guideline. In fact, all vehicles
registered to you as application as applicant with max two
must be in roles in CLCA.
Speaker 1 (08:29):
Absolutely more information, of course, you can check out my
low cost auto dot com or you can call it
eight six six six so two eight eight six y one.
Is there any information, Amy that we left out that
you want to get across.
Speaker 2 (08:40):
Nope, that's it. I just really appreciate your.
Speaker 1 (08:42):
Time Major absolutely, thank you so much for joining us.
I feel like this program is amazing. Also, the numbers
that we were given out throughout the show What's for
the year, I think that's amazing. This is a still, Amy,
I don't think you understand. Well, you probably do understand,
because this is what you do day in and day out,
but I feel like these numbers are as still and
people need to take advantage of this program, don't you think?
Speaker 2 (09:02):
Definitely so, especially for those who are currently driving without
any insurance. Please just know that there are options out
there and we're here to help.
Speaker 1 (09:11):
Is that common people driving without insurance? Yes, it is okay,
all right, well, there's no need for that. My low
Costsauto dot com or you can call it eight six
six six oh two eight eight six ' one Amy.
Thank you so much for joining us.
Speaker 2 (09:27):
Of course, thank you for having me
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