Auto Insurance In California: What's Considered Low?

California is one of the most expensive states for car insurance, with quotes up to 24% higher than the national average. The California Low-Cost Auto Insurance Program (CLCA) 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 persons with liability insurance protection at affordable rates as a way to meet California's financial responsibility laws.

The CLCA defines a good driver as someone who has held a license for three consecutive years, has no felonies or misdemeanors on their record and has earned no more than one point on their driving record in the past three years. A good driving record will also not have any at-fault accidents that resulted in injuries or death within the past three years.

To be eligible for the program, you must:

- Have a valid California driver’s license

- Own a vehicle worth no more than $25,000

- Be at least 16 years old (applicants under 18 must be legally emancipated)

- Meet income eligibility requirements

- Have a good driving record

California's Low-Cost Auto Insurance Program (CLCA)

California is one of the most expensive states for car insurance, with quotes up to 24% higher than the national average. The California Low-Cost Auto Insurance Program (CLCA) was established in 1999 to provide income-eligible persons with liability insurance protection at affordable rates. The program is designed to meet California's financial responsibility laws, which require all drivers in the state to maintain evidence of financial responsibility.

The CLCA program offers base policies with liability-only coverage, including $10,000 of bodily injury or death liability per person, $20,000 of bodily injury or death liability per accident, and $3,000 of property damage liability per accident. Unlike standard auto insurance policies, CLCA policies are not very customizable, and comprehensive and collision coverage are not available through the program. However, policyholders can add medical payments coverage and uninsured motorist protection for an additional cost.

To be eligible for the CLCA program, individuals must meet certain requirements. They must have a valid California driver's license, own a vehicle worth no more than $25,000, be at least 16 years old (with applicants under 18 requiring legal emancipation), meet income eligibility requirements, and have a good driving record. The income eligibility requirements vary based on household size, with a maximum income of $37,650 for a one-person household and $91,450 for a five-person household.

The CLCA program is administered by the California Department of Insurance and the California Automobile Assigned Risk Plan (CAARP). Interested individuals can visit the CLCA website or contact a certified agent to determine their eligibility and enroll in the program. The annual cost of the program ranges from $198 to $802, with the base price varying by county, age, and driving experience.

Who is eligible for low-income car insurance in California?

The California Low-Cost Auto Insurance Program (CLCA) is a state-sponsored insurance program that offers affordable coverage to low-income individuals. The program was established in 1999 to provide income-eligible persons with liability insurance protection at affordable rates, helping them meet California's financial responsibility laws.

To be eligible for low-income car insurance in California, you must meet the following criteria:

• Have a valid California driver's license (an AB 60 license is acceptable) or pending reinstatement.
• Be at least 16 years old (applicants under 18 must be legally emancipated).
• Have a good driving record.
• Own a vehicle worth no more than $25,000.
• Meet income eligibility requirements.

The income eligibility requirements for the CLCA program are based on the federal poverty level. The limits vary depending on the size of your household. For a one-person household, the annual income must be $37,650 or less, while for a four-person household, it must be $78,000 or less. To prove your income, you can provide documents such as a W-2 form, payroll stub, or other qualifying forms.

In addition to the income and vehicle value requirements, your driving record will also be considered. The CLCA defines a "good driver" as someone who has held a license for three consecutive years, has no felonies or misdemeanors on their record, and has earned no more than one point on their driving record in the past three years.

If you meet the eligibility criteria, you can apply for the CLCA program by visiting the official website or contacting a CLCA agent. The enrollment process is straightforward, and you can fill out an online application form to determine your eligibility.

How to apply for CLCA

California is one of the most expensive states for car insurance, with quotes up to 24% higher than the national average. The California Low Cost Automobile Insurance Program (CLCA) was established by the Legislature in 1999 to provide income-eligible persons with liability insurance protection at affordable rates.

To apply for the CLCA, you must meet the following qualifications:

• Hold a valid California driver's license.
• Meet the income eligibility requirements based on household size (a maximum income of $36,450 for a single-person household in 2023).
• Have a vehicle valued at $25,000 or less.
• Be at least 18 years old (drivers under 18 can qualify with legal emancipation).
• Have a good driving record or less than three years of driving experience.

You can visit the CLCA website at www.mylowcostauto.com or call 1-866-602-8861 to see if you qualify and locate a certified agent in your local area. The website includes an eligibility questionnaire, FAQs translated into several common languages, a rate estimator, and tools for finding an agent to help you purchase auto insurance.

How much does the CLCA insurance program cost?

The California Low-Cost Auto Insurance Program (CLCA) was established in 1999 to provide affordable insurance to income-eligible good drivers who would otherwise be uninsured. The program is not meant for those who are simply looking for cheap insurance in California, but rather for those whose income is below the federal poverty level. The CLCA program is not auto insurance sold by the California Department of Insurance, but rather a program that assigns a licensed auto insurance company to provide a policy through the California Automobile Assigned Risk Plan.

The costs of the CLCA insurance program are calculated differently from private policies. Standard insurance companies determine the annual cost of a policy based on factors such as the type of vehicle and the driver's ZIP code. However, when enrolling in the CLCA insurance program, there are set rates that range from $198 to $802 per year. Drivers on the program may pay all at once or put 20% down and pay the remainder in seven installments, with each installment incurring a $4 transaction fee.

The base CLCA policies provide liability-only coverage with the following policy limits:

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

There are two types of optional coverage offered by the CLCA program: medical payments and uninsured motorist protection. Medical payments coverage can help with hospital and other medical bills for the driver and passengers, while uninsured motorist coverage offers financial protection if the policyholder is hit by an uninsured driver. The prices for each are fixed and added to the base cost of the policy.

The cost of a CLCA policy depends on the driver's age, county of residence, and driving experience. Drivers between the ages of 19 and 24 see a 30% surcharge on their base rates, while teen drivers between 16 and 18 pay double the base price. Adult drivers who have held a license for less than three years will pay 40% more than their county's base price.

What is the California Low-Cost Auto Insurance program?

The California Low-Cost Auto Insurance program (CLCA) was established in 1999 to provide affordable coverage for those who qualify. It is a state-sponsored program that ensures Californians have access to essential auto insurance. The program is designed for income-eligible persons with coverage at affordable rates, helping them meet California's financial responsibility laws.

The base CLCA policies provide liability-only coverage with the following limits:

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

CLCA policyholders can add the following coverages for an additional cost of around $43 to $82 per year:

• $1,000 of medical payments coverage per person
• $10,000 of uninsured motorist bodily injury per person
• $20,000 of uninsured motorist bodily injury per accident

To be eligible for the CLCA program, certain criteria must be met. Applicants must have a valid California driver's license, including an AB60 license for undocumented students, and own a vehicle worth no more than $25,000. They must be at least 16 years old (with applicants under 18 needing to be legally emancipated), meet income eligibility requirements, and have a good driving record. The income eligibility requirements vary based on household size, with limits ranging from $37,650 per year for a one-person household to $91,450 for a five-person household.

The CLCA defines a "good driver" as someone with no felonies or misdemeanours on their record, who has earned no more than one point in three years, and has had no at-fault accidents resulting in injuries or death in the past three years.

The California Low-Cost Auto Insurance program offers set rates ranging from $198 to $802 per year, with the option to pay in full or through instalments. The base price varies by county and can be higher for younger or less experienced drivers.

Frequently asked questions