What is the California Low Cost Automobile Insurance Program (CLCA)?

View a video introducing California's Low Cost Automobile Insurance Program. (View the CLCA video with open captions.)

The primary goal of the California Low Cost Automobile Insurance Program (CLCA) is to provide an affordable auto insurance option to low-income good drivers.

California Law requires that all drivers be insured. However, too many low-income drivers remain uninsured because the costs of standard insurance premiums are beyond their financial reach. The California Low Cost Automobile Insurance Program provides affordable liability only auto insurance that meets the state's financial responsibility laws. (More details)

What is the maximum limits this CLCA liability policy will cover?

Basic Liability Policy

• Bodily Injury liability per person - $10,000
• Bodily Injury liability per accident - $20,000
• Property Damage liability per accident - $3,000

(See annual cost for liability coverage - rates effective 5/11/2009)

Optional Coverages

For Additional Charge you can add:

• Medical Payments per person - $1,000
• Uninsured Motorist Bodily Injury per person - $10,000
• Uninsured Motorist Bodily Injury per accident - $20,000

(See annual cost for optional coverages - rates effective 5/11/2009)

CLCA polilcies do not provide coverage for Physical Damage (Comprehensive and Collision). Coverage can be purchased separately from the producer.  

Who is eligible for the California Low Cost Automobile Insurance Program?

• Applicant must be at least 19 years of age or older and a continuously licensed driver for the past three years.
• Applicant must qualify as a good driver  .
• Have a vehicle currently valued for $20,000 or less.
• Must meet Income eligibility requirements.

Can I make installment payments?

• There are five different Payment plan options  available. No outside premium financing is allowed.

How do I apply for a CLCA policy?

In order to buy this insurance you must meet certain rules.  Take this simple questionnaire test to find out if you may qualify. You will be asked a few yes/no questions to determine if you are eligible. If you qualify, you will be provided a list of certified producers in your local area. Simply enter your zip code and the list will appear.

You will need to contact a producer in order to apply for the automobile liability insurance policy. They will help you complete an application for insurance, plus collect the required deposit and documents needed for this program and get you started.  Now, let's find out Do I qualify?        

Can the producer charge extra fees?

The California Insurance Code 11624.5 prohibits producers from charging any fees when submitting an application through the CLCA insurance program. This means no "broker fees", no "paper work fees", or no "motor vehicle report fee" can be charged.

Can I choose the assigned Company?

No, you can not choose your company. Applications are assigned via a random assignment process.

Other important links:

• Reports to the Legislature and Consumer Education and Outreach Plans
• PDF Version CLCA multi Language Brochure
• Cost of CLCA Insurance by County
• Good Drivers Definition
• Applicant Income Eligibility Requirements
• Request CLCA brochures to be mailed to your organization.
• Invite the Community Relations Branch to your outreach event or meeting!
• Take the simple test to see if you qualify for  the CLCA program.
• If you have a question about the CLCA program, send us an e-mail!

The California Low Cost Automobile Insurance Program is brought to you by the California Department of Insurance and is administered by the California Automobile Assigned Risk Plan (CAARP).