California Low Cost Auto Insurance Program (CLCA) Explained

California: this guide applies only to California. If you live elsewhere, see state minimum car insurance requirements to find your own state’s rules. It is education only. Car Bills Explained is not an insurer, agent or broker, and we are not part of the CLCA program. Program details change, so confirm everything on the official program site before you apply.

What is the CLCA program?

According to the state’s CA.gov service page, California’s Low Cost Automobile Insurance program was established by the Legislature in 1999, under California Insurance Code Section 11629.7, to give income-eligible good drivers liability insurance at affordable rates. It is brought to you by the California Department of Insurance and administered by the California Automobile Assigned Risk Plan (CAARP). The same page says the program is open to California residents who meet the eligibility requirements, regardless of immigration status.

Who can qualify?

The California Department of Insurance lists these requirements. You must:

• Have a valid California driver’s license.
• Meet the income eligibility guidelines.
• Own a vehicle valued at $25,000 or less.
• Be at least 16 years old (applicants under 18 must be legally emancipated).
• Have a good driving record, or be a new driver.

The program’s FAQ defines a household as all the people listed on a federal or state income tax form. It also says each qualified person can have up to two low cost policies, that all vehicles registered to you (up to two) must be enrolled, and that motorcycles and commercial vehicles are excluded.

What are the income limits?

Under the Insurance Code, household gross income can’t exceed 250 percent of the federal poverty level, so the dollar limits are updated over time. When we checked, the program’s FAQ listed these yearly household income limits:

Confirm the current figures on the official CLCA FAQ before you apply.

What counts as a good driving record?

The CA.gov page defines a good driving record as:

• No more than one at-fault accident with property damage only, or no more than one point for a moving violation, within the past three years.
• No at-fault accidents involving bodily injury or death within the previous three years.

What does a CLCA policy cover?

The CLCA program sells liability-only coverage that meets California’s financial responsibility laws. The basic limits are:

• $10,000 for bodily injury or death per person
• $20,000 for bodily injury or death per accident
• $3,000 for property damage per accident

For an extra $38 to $81 per year, the program’s FAQ says you can add $1,000 of medical payments per person and uninsured motorist bodily injury coverage of $10,000 per person and $20,000 per accident.

Liability-only means the policy pays for damage you cause to others, up to the limits. It doesn’t pay to repair your own car. If you have a car loan, your lender likely requires collision and comprehensive coverage, which CLCA doesn’t sell. See car insurance coverage types explained.

How does CLCA compare with the standard minimum?

Since January 1, 2025, a standard private passenger auto policy in California must carry at least 30/60/15. The Department of Insurance’s July 23, 2024 alert said the CLCA program’s limits would stay the same at 10/20/3 while the standard minimums rose, and that the program had already seen an 83% increase in active policies in 2023.

The Department noted that while CLCA limits are lower, the program is designed to give a basic level of coverage to people who can’t afford higher premiums. Lower limits also mean that if a crash costs more than the policy pays, you could be responsible for the rest.

How much does CLCA cost?

The CA.gov page says yearly premiums vary by county, ranging from $244 to $966, and that there are discounts for drivers who have been licensed for three years with a good driving record. Your price depends on your county and record; the program quotes it when you apply.

How do you apply?

1. Gather your California driver’s license, your vehicle information and proof of household income.
2. Go to mylowcostauto.com, or call 866-602-8861 if you don’t have internet access or need help.
3. Check eligibility and get a quote for your county.
4. Once your policy starts, keep proof of insurance in the car. The California DMV checks coverage electronically and can suspend a registration without proof of insurance.

Type the program address yourself. Be wary of look-alike sites or callers who ask for payment details to “qualify” you.

Questions to ask yourself before you apply

• Do I owe money on the car? If so, check what coverage your loan or lease contract requires. A liability-only policy may not satisfy it, and the CFPB explains that a lender can buy force-placed insurance and charge you for it if required coverage lapses.
• Could I pay for my own repairs? CLCA doesn’t cover damage to your car. Think about what you would do if it were damaged in a crash you caused.
• Would the add-ons help? Medical payments and uninsured motorist coverage cost extra but cover costs the basic policy doesn’t.
• Will my situation change? If your income rises above the limit or your driving record changes, you may need a standard policy at renewal. Compare before your policy ends so you don’t have a gap.

What if you don’t qualify?

You still need to meet California’s financial responsibility law to drive or park on California roads. The California DMV lists a standard liability policy at the 30/60/15 minimum as the usual route, and it also accepts a $75,000 surety bond from a company licensed in California. If you stop driving the car, the DMV says to notify it before you cancel your insurance; it accepts an Affidavit of Non-Use for a vehicle that isn’t used or parked on a public road.

Where can you get help?

For questions or complaints about insurance in California, contact the California Department of Insurance Consumer Hotline at 800-927-4357. The Department also suggests speaking with a local licensed agent to discuss your options. See complaints and where to get help.