FAQs

What are the eligibility requirements?
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 19 years of age

Income eligibility requirements per household effective Feb. 9, 2015 – Feb. 9, 2016 are:

  • 1 person – $29,425
  • 2 people – $39,825
  • 3 people – $50,225
  • 4 people – $60,625

A “household” is defined as all persons listed on a federal or state income tax form.

Do I have to prove my income to apply?
Yes. The program will accept any one of the following documents as proof of household income:

PROGRAM DOCUMENT REQUIRED
CalFresh (food stamps) EBT card
CalWorks Notification letter
California LifeLine Bill showing discount from phone company
LIHEAP Low Income Home Energy Assistance Bill showing discount from utility company
Medi-Cal / Medicaid Program card
California Employment Development Department (EDD) Debit card or benefit letter
SSI / Social Security Income (age, blind, disabled) Recent bank statement as proof of deposit
Social Security or Pension Letter from administration
Income Level*
*social security number or TIN accepted
• Copy of federal or state income tax return for last year

• W-2 or 1099 form

• Payroll stub or employer verification letter

What coverage does California Low Cost Automobile insurance policy provide?
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 $21-$68 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.

What are the costs for a CLCA policy?
The annual premiums in California vary by county, ranging from $213 to $472. 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.

*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.)

How do you apply for the program?
To apply for California’s Low Cost Auto Insurance Program, follow these 3 steps:

  • Complete the eligibility questionnaire,
  • Connect with an insurance agent at no cost, and
  • Complete your paperwork with the agent’s assistance

To get started now, click here to take the eligibility questionnaire.

If you do not have internet access or need additional assistance, please call 1-866-602-8861.

What are the penalties for not having auto insurance?

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 and possible vehicle registration suspension.

For more information regarding penalties for not having auto insurance, click here to access the California DMV website.

How many vehicles can be on the CLCA policy?
“Every qualified consumer is allowed up to two low cost policies under the program guidelines. If there are two qualified consumers in the household, each can have up to two policies for a total of up to four per household.

For example, an individual can have a maximum of two vehicles in this program and a married couple could have a maximum of 4 vehicles, if each vehicle is registered in their respective names.

Why do all vehicles in the household need to be added to CLCA?
The program requires that all vehicles in the household be insured in the program. Consumers may not have liability coverage through any other policy for other vehicles in the household.

A “household” is defined as all persons listed on a federal or state income tax form.

Can I get coverage through a CLCA policy if I have a vehicle loan?
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.