Learn more about California's new minimum auto insurance requirements.
California's Low Cost Auto Insurance Program
Each CLCA insurance policy provides liability coverage for the vehicle’s primary driver and eligible secondary drivers. Following an accident, liability insurance covers damage you cause to other people and their property. The CLCA insurance program does not provide coverage for your own medical or vehicle repair costs.
To be eligible for a CLCA insurance policy, drivers must:
- Carry a valid California driver's license
- Own a motor vehicle valued at $25,000 or less
- Meet the income requirements
- Be at least 16 years of age
- Have a good driving record
To qualify for a CLCA insurance policy, households must fall below the following income requirements:
- One person - $36,450.00
- Two people - $49,300.00
- Three people - $62,150.00
- Four people - $75,000.00
- Five people - $87,850.00
California defines a "household" as all persons listed on a federal or state income tax form.
Annual premiums for a CLCA insurance policy vary by county but range from $232 to $932. However, discounts are available for licensed drivers of over three years with good driving records.
California defines a good driving record as:
- No at-fault accidents involving bodily injury or death on your driving record within the past three years
- 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 felony or misdemeanor convictions for a violation of the California Vehicle Code on a motor vehicle driving record
CLCA insurance policies have two payment options:
- Full payment
- 20% down payment with 7 installment payments
A standard CLCA insurance policy provides liability-only insurance that meets the state's insurance requirements. Basic 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
Apart from basic liability coverage, eligible consumers also have the option to add the following coverages for an additional $37-$107 per year:
- $1,000 medical payments per person
- $10,000 uninsured motorist bodily injury per person
- $20,000 uninsured motorist bodily injury per accident
The CLCA insurance program does not provide comprehensive or collision coverage.
To apply, drivers must follow these two steps:
- Complete the eligibility questionnaire online
- Complete the application process online or with a local agent.
To learn more about the program, visit the CLCA website or call 1-866-602-8861.
Have More Questions?
If you need further assistance or still have questions regarding California's Low Cost Auto Insurance Program, please call 1-866-602-8861 or visit the CLCA website.
If you have any general questions regarding additional coverage options, our insurance specialists can help. Our specialists are available Monday through Friday from 6:00 AM - 6:00 PM PST and can be reached directly by calling (888) 772-4247.
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