Is the California Low Cost Auto Insurance Program (CLCA) Legit?

Last Updated on February 5, 2026

The California Low Cost Auto Insurance Program (CLCA) is a state-sponsored option that helps eligible Californians buy basic car insurance at a lower price. If you’re struggling with rising premiums, CLCA can be a legitimate way to stay insured and legal on the road.

In fact, the California Department of Insurance continues to promote CLCA as an affordable alternative—especially after California’s required liability minimums increased in 2025 (which pushed many standard policies higher at renewal).

1. CLCA Is Legit and State-Sponsored: The program is backed by the California Department of Insurance and administered through CAARP to help eligible drivers stay insured.
2. It’s Liability-Only With Low Limits: CLCA’s basic limits are 10/20/3, with optional add-ons for limited medical payments and uninsured motorist bodily injury.
3. California Minimums Increased in 2025: Standard minimum liability limits rose to 30/60/15 at renewal, while CLCA limits remain unchanged—making CLCA affordable but less protective.
4. Eligibility Depends on Income, Vehicle Value, and Driving Record: You’ll need a CA license, a vehicle worth $25,000 or less, and household income under the program caps.

What Is the California Low Cost Auto Insurance Program?

California requires drivers to show financial responsibility to legally drive. Most people do that by carrying an active auto insurance policy and keeping proof in the vehicle (like an insurance card).

But car insurance can be expensive. And when premiums jump, some drivers take the risk of driving uninsured—despite major financial consequences after a crash. (The Insurance Research Council estimated that in 2023, about 15.4% of drivers nationwide were uninsured, and California was higher at 20.4%.)

CLCA was created in 1999 to help reduce uninsured driving by offering eligible “good drivers” a low-cost, liability-only policy administered through the program (not a single private insurer). The program is sponsored by the California Department of Insurance and administered by the California Automobile Assigned Risk Plan (CAARP).

If you’re struggling to afford car insurance in California, or you’re looking for low-income auto insurance options, CLCA can be worth checking—because it’s real coverage that satisfies California’s financial responsibility laws.

CLCA Eligibility Requirements

CLCA is not open to everyone. You must meet specific eligibility rules related to your license, income, vehicle, and driving record.

• Valid California driver’s license: The program accepts standard licenses and AB 60 licenses; you may also qualify in some situations while reinstating a license.
• Income-eligible household: Your household income must be under the program limits (see the income table below).
• Vehicle value: Your car must be valued at $25,000 or less.
• Age: You must be at least 16-years-old. Applicants under 18 generally must be legally emancipated.
• Driving record: You must be a “good driver” (or a new driver) under CLCA rules.

Good to know: CLCA is available regardless of immigration status, which can help drivers who are undocumented immigrants but otherwise meet the requirements.

What CLCA Covers

CLCA is liability-only insurance. It’s meant to help you drive legally—it’s not designed to protect your own vehicle the way “full coverage” does. If you want help understanding the difference, read liability vs. full coverage.

Because CLCA doesn’t include comprehensive or collision, it won’t pay to repair your vehicle after an at-fault crash, and you typically won’t get an insurance payout if your car is stolen. It’s designed primarily to protect other people from damage you cause.

CLCA also isn’t a fit for every driving situation. For example, CLCA generally excludes ride-hailing and delivery-style commercial use. If you need coverage for app-based driving, you’ll usually need a private policy and the right endorsement.

CLCA vs. California’s Minimum Insurance Requirements

California increased its required minimum liability limits starting January 1, 2025 (as policies renew). The new minimums for standard policies are 30/60/15. CLCA’s limits remain lower, but the program is still treated as meeting California’s financial responsibility laws for eligible drivers.

Why this matters: With today’s repair and medical costs, it’s easier than you think to exceed CLCA limits in a serious accident. If you cause a crash with $50,000 in medical bills, for example, you could be responsible for the difference after your coverage pays out.

How Much Does CLCA Cost?

CLCA pricing varies by county, but it’s typically far cheaper than private-market premiums for eligible drivers. According to the program’s official FAQ, annual CLCA premiums generally range from $199 to $920 depending on your county and eligibility for discounts.

The easiest way to estimate your CLCA cost is to use the official rate calculator (it’s separate from our car insurance calculator and uses CLCA’s county-based pricing). You’ll enter your county and licensing history to see a projected premium.

If you’re shopping private coverage in high-cost areas like Los Angeles or dealing with the factors that make premiums high in San Francisco, it’s worth checking CLCA eligibility even if you end up choosing a standard policy.

How to Apply for CLCA

You can apply through the program’s official website: MyLowCostAuto.com. The site walks you through a short eligibility questionnaire and then the application. You can apply online or work with a local agent at no cost.

To start your application, you’ll typically need:

• A valid California driver’s license
• Current vehicle registration
• Payment for your initial deposit (CLCA offers pay-in-full or installment options)
• One document to verify income eligibility (examples below)

Income Limits for CLCA

Your household income must be under CLCA’s income cap. “Household” is generally defined by the program as the people listed on a federal or state income tax form.

CLCA income eligibility guidelines (annual household income):

Note: These figures are based on the program’s published household caps. Because income guidelines can change, always confirm your eligibility using the official CLCA questionnaire before applying.

Documents That Can Prove Income Eligibility

CLCA typically accepts one document showing income eligibility. Common examples include:

• CalFresh (EBT) card
• CalWORKs notification letter
• LIHEAP verification
• Medi-Cal/Medicaid card
• California EDD debit card or benefit letter
• SSI verification
• Social Security or pension letter
• Income documentation (tax return, W-2, 1099, or recent pay stub)

What’s the Catch?

CLCA is legitimate, and for eligible drivers it can be a lifesaver. The “catch” is simply that it’s basic coverage with low limits and no protection for your car.

• It’s liability-only: It can pay for injuries and damage you cause to others, like bodily injury liability coverage and property damage liability coverage.
• Optional UM add-on is limited: If you add uninsured motorist bodily injury, it can help when you’re hit by an uninsured driver, but limits are still low (see UMBI coverage).
• Low limits can leave you exposed: A serious accident can exceed CLCA limits quickly. If you want higher protection, you’ll likely need a private policy.
• Not every situation qualifies: If you drive commercially (including certain app-based driving), CLCA may not be an option.

If you decide CLCA isn’t enough, you can compare higher-limit policies using California’s state-by-state auto insurance requirements as a baseline—and then choose limits above the minimum if you can afford it.

Final Word

The California Low Cost Auto Insurance Program is a legitimate, state-sponsored way for eligible drivers to maintain affordable, legal auto insurance. If you qualify, it can be a smart alternative to going uninsured—especially as standard policy minimums (and premiums) rise.

To check eligibility, calculate rates by county, and apply online, visit the official program website at MyLowCostAuto.com.

FAQs on the California Low Cost Auto Insurance Program