If you have a valid driver’s license and drive a vehicle, the law requires that you have auto 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.
To be eligible for this program, you 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 February 2019 are:
- 1 person – $31,225.00
- 2 people – $42,275.00
- 3 people – $53,325.00
- 4 people – $64,375.00
- 5 people – $75,425.00
A “household” is defined as all persons listed on a federal or state income tax form.
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The program will accept any one of the following documents as proof of household income:
| Program | Document Required |
| CalFresh (food stamps) | Electronic Benefit Transfer (EBT) card |
| CalWorks (welfare) | Notification letter |
| California LifeLine | A utility company Lifeline verification |
| LIHEAP (low income home energy assistance) | LIHEAP (low income energy assistance) verification |
| Medi-Cal / Medicaid | Medi-Cal card |
| State of California Employment Development Department (EDD) Debit Card or benefit letters | EDD debit card or benefit letter |
| SSI (aged, blind, disabled) | SSI verification |
| 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 from an insurance agent.
The annual premiums in California vary by county, ranging from $244 – $966. There are discounts if you have 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
CLCA offers two payment options:
- Payment in full or
- 20% down with 7 installment payments (For each installment payment there will be a $4.00 transaction fee.)
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If you are cited for not having auto insurance at the time of a moving violation or accident, there are penalties that include fines and possible vehicle registration suspension.
For more information regarding penalties for not having auto insurance, click here to access the California DMV website.
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.
If your vehicle is financed you should check with your lender to determine if the coverage limits provided by the program will meet the requirements of your loan.
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William Lee Go
8616 La Tijera Blvd, Suite 317
Los Angeles, CA 90045
Phone: 310-665-1162, 626-399-1004
License No. 0C70895
