Between books, tuition and rent, college students may not have much money leftover to pay for auto insurance. But the California Department of Insurance started a low cost insurance program specifically aimed at cash-strapped young adults, according to The Santa Monica College newspaper. The initiative began in 1999 as a pilot program in Los Angeles and San Francisco and has been expanding ever since. In 2007 the program opened up to residents of the entire state.

The idea is to give discounted insurance to students between the ages of 19 and 24 who otherwise couldn’t afford it. While any young resident may qualify, it’s typically been community college students who have benefited most, according to officials. “We try to focus on schools that are more impacted,” Rebecca Almanza of Imprenta Communications told the newspaper. Imprenta Communications is the PR firm hired to promote the program and they say that research shows Latinos, Asians and African Americans have the highest percentage of uninsured drivers.”Assuming that most other insurance carriers have overhead fees, pay their sales reps and agents percentages in California, while also assuming that people are of low income, it seems to be a great offer, particularly in the economic recession, which the US is in,” radiation therapy major Beatriz Esparaza told the Long Beach City College newspaper.   

So how can young adults take advantage of this coverage? You have to go through one of ten major insurance carriers, not the state. “The California Department of Insurance does not offer this policy or insurance,” Deputy Press Secretary Dave Althausen told the Santa Monica College newspaper. It costs less than $400 a year and in the past nine years more than 50,000 drivers have signed up. Other requirements include having your license for at least three years before applying, meeting income requirements of less than $27,075 for a single person or $36,425 for a couple and having no felony or misdemeanor convictions.

Those caught without insurance could have their license suspended or vehicle impounded. “There is no excuse for driving without insurance,” California Insurance Commissioner Steve Poizner told the newspaper. “The bottom line is that driving without insurance is irresponsible and illegal, so take advantage of this affordable program. It can be especially helpful to our college students, who may be struggling to make ends meet.”