California Low Cost Auto Insurance Program

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What is California Low Cost Auto Insurance Program:

The California Low Cost Auto Insurance (CLCA) program is a state-sponsored initiative designed to provide affordable liability insurance to income-eligible drivers in California. The program was created to help ensure that low-income residents have access to the minimum required auto insurance coverage, thereby enabling them to meet their legal obligations and drive legally on the roads.

The CLCA program is administered by the California Department of Insurance (CDI), and interested individuals can apply through participating insurance companies authorized by the CDI to offer CLCA policies.

What are the coverage limits:

The CLCA program offers a basic insurance policy that provides liability coverage to participants. Liability coverage helps pay for bodily injury or property damage caused by an insured driver to others in an accident. The CLCA policy includes $10,000 in bodily injury liability coverage per person, $20,000 in bodily injury liability coverage per accident, and $3,000 in property damage liability coverage per accident.

Eligibility Requirement:

To be eligible for the CLCA program, individuals must meet certain income requirements and have a good driving record. The specific income thresholds may vary each year, and participants must also meet other criteria set by the program.

It’s important to note that the CLCA program provides only liability coverage and does not include comprehensive or collision coverage, which would cover damages to the insured driver’s vehicle. Participants in the program are responsible for paying any additional costs or damages beyond the coverage provided by the CLCA policy.

The State of California developed the California Low Cost Auto Insurance Program (CLCA program) to provide income eligible, good drivers with access to affordable automobile liability insurance. Each policy provides liability coverage for the vehicle’s primary driver and eligible secondary drivers.  The CLCA policies are limited to no more than two policies per person. The Program provides affordable liability only auto insurance that meets the state’s financial responsibility laws.

The California Compulsory Financial Responsibility Law requires every driver and every owner of a motor vehicle to maintain financial responsibility (liability coverage) at all times. Notwithstanding the coverage amounts required by section 16056 of the vehicle Code, a low-cost automobile policy issued under the program shall satisfy the financial responsibility requirements of Sections 4000.37, 16021, and 16431 of the Vehicle Code.

2023 CA Low Cost Ratesheet Per County: