California’s Low Cost Auto Insurance Program is a state-sponsored program that makes insurance affordable for California residents
California’s Low Cost
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What is CLCA Insurance?
California’s Low Cost Auto (CLCA) Insurance program is a state-sponsored program that makes auto insurance affordable, helping you drive responsibly and legally. California’s Low Cost Auto (CLCA) Insurance program helps good drivers that are income eligible afford auto insurance that meets the state’s financial responsibility laws. Each policy provides liability coverage for the vehicle’s primary driver and eligible secondary drivers. Each individual car owner may buy separate policies to insure up to two vehicles, per person under this program.
Wherever you live, you’ll find these policies more affordable than what most private plans offer. Payment plans are available for as little as 15% down. Major credit or debit cards are accepted. These policies are issued by California-licensed insurance companies.
To Qualify for this Program, You Must:
- Have a Valid California Driver’s License
- Meet Income Eligibility Guidelines
- Own a Vehicle Valued at $25,000 or Less
- Be at Least 16 Years of Age
- Have a Good Driving Record
Income Eligibility Check
The annual premiums in California vary by county, ranging from $244 – $966. Discounts are available if you have been a licensed driver with 3 years of good driving history. To check the rates in your county, answer the questions below to reveal your estimated annual premium
What county do you live in?
Continuously licensed for 3 years?
Are you less than 18 years old?
Are you 19-24 years old?
Frequently Asked Questions
To be eligible for the California’s Low Cost Auto Insurance Program, or CLCA, consumers must:
- Have a valid California driver’s license
- Own a vehicle valued at $25,000 or less
- Meet income eligibility guidelines
- Be at least 16 years of age
- Have a Good Driving Record
Income eligibility requirements per household effective 2020 are:
- 1 person – $32,200.00
- 2 people – $43,550.00
- 3 people – $54,900.00
- 4 people – $66,250.00
- 5 people – $77,600.00
A “household” is defined as all persons listed on a federal or state income tax form.
Yes. The program will accept any one of the following documents as proof of household income:
CalFresh (food stamps)
Electronic Benefit Transfer (EBT) card
A utility company Lifeline verification
LIHEAP (low income home energy assistance)
LIHEAP (low income energy assistance) verification
Medi-Cal / Medicaid
State of California Employment Development Department (EDD) Debit Card or benefit letters
EDD debit card or benefit letter
SSI (aged, blind, disabled)
Social Security or Pension
Social Security or pension letter
Income Level *
The program provides affordable, liability only auto insurance that meets the state’s financial responsibility laws.
Basic Liability Policy limits are:
- $10,000 bodily injury or death per person
- $20,000 bodily injury or death per accident
- $3,000 property damage liability per accident
For an additional charge of $39-$104 per year, consumers can add:
- $1,000 medical payments per person
- $10,000 uninsured motorist bodily injury per person
- $20,000 uninsured motorist bodily injury per accident
The program does not offer comprehensive or collision coverage (coverage that will repair the driver’s own vehicle after an accident), but this coverage can be purchased separately.
The annual premiums in California vary by county, ranging from $244 – $966. There are discounts if the consumer has been a licensed driver for 3 years with a good driving record.
A good driving record is defined as:
- No more than one at-fault property damage only accident or no more than one point for a moving violation within the past three years
- No at-fault accidents involving bodily injury or death on a driving record within the previous three years
- No felony or misdemeanor convictions for a violation of the Vehicle Code on a motor vehicle driving record
To check the rates by county or calculate a payment* schedule, click here to access the rate calculator.
To apply for California’s Low Cost Auto Insurance Program:
To apply online, Click Here to take a short eligibility questionnaire. If deemed eligible fill in the information and will will get in touch to complete the CLCA policy OR meet with a local agent at no cost, if you have any questions please call 1-844-324-6262
Every qualified consumer is allowed up to two Low Cost policies under the program guidelines. In fact, all vehicles* registered to you as the applicant, with a max of 2, must be enrolled in CLCA.
*Motorcycles and commercial vehicles are excluded.
The program requires that all vehicles registered to the applicant be insured in the program. Therefore, to be eligible for one vehicle in the program, consumers may not have liability coverage through any other policy for other vehicles.
Yes, but you should check with your lender to determine if the coverage limits provided by the program will meet the requirements of your loan.
California’s Low Cost Automobile (CLCA) Insurance program 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.
California’s Low Cost Auto (CLCA) Insurance Program is a state-sponsored program that makes insurance affordable for California residents who meet the eligibility requirements, regardless of immigration status.
The CLCA Insurance program is brought to you by the California Department of Insurance and is administered by the California Automobile Assigned Risk Plan (CAARP).