California’s Low Cost Automobile Insurance Program

The State of California has developed this program to provide income eligible, good drivers with access to affordable automobile liability insurance. The policies are issued by California licensed insurance companies. California state law provides that a California Low Cost Automobile Insurance policy satisfies financial responsibility laws.

View Outreach Materials of California's Low Cost Insurance.

California law requires all drivers to have auto insurance.
If you drive without insurance you could:

• Have your vehicle registration suspended.
• Have your license suspended.
• Have your car impounded.
• Be fined.

Are you driving without insurance because you can’t afford the rates?

The State of California has developed a program to help income eligible good drivers get low cost automobile insurance for under $556 a year (liability only).

Policies are issued by California licensed insurance companies. California’s Low Cost Automobile Insurance policies satisfy the state’s liability insurance requirement.

You may qualify for California’s Low Cost Automobile Insurance Program if you:

• Have a valid California driver's license.
• Own a vehicle that is valued at $25,000 or less.
• Meet income eligibility requirements.
• Are at least 16 years of age.

There are two payment plans available:

• Full annual premium.
• Or, 20% deposit with balance to be paid in seven bi-monthly installments. (For each installment payment there will be a $4 transaction fee.)

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

** Additional direct benefit coverage is available for an additional charge.

Income Eligibility (Rev 2019)

HOUSEHOLD SIZE	MAXIMUM INCOME
1 PERSON	$31,225
2 PEOPLE	$42,275
3 PEOPLE	$53,325
4 PEOPLE	$64,375
5 PERSON	$75,425
6 PEOPLE	$86,475
7 PEOPLE	$97,525
8 PEOPLE	$108,575

For households with more than 8 members, add $11,050 for each additional member.

• Eligibility is based on the household’s gross annual income, which must be 250% or less of the federal poverty level.
• For Low Cost Automobile (LCA) Insurance Program income eligibility purposes, “Household” means all the persons who occupy a housing unit (house or apartment) and who are related by blood, marriage, registered domestic partnership, adoption, or guardianship. If more than one family is living in the same housing unit, they constitute different families for eligibility purposes even though they reside at the same address.

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You have to prove your income to apply. The program will accept any one of the following documents as proof of household income:

• 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 using social security number or TIN accepted - Copy of federal or state income tax return for last year, or W-2 or 1099 form, or Payroll stub or employer verification letter

You can complete the Eligibility Questionnaire online, and apply online. Get started here: http://bit.ly/2tiQbSv.

Read more on the FAQs page.

County Premiums (2019)

Click here to view the 2019 County Premium

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The State of California’s Low Cost Automobile Insurance Program is brought to you by the California Department of Insurance and administered by the California Automobile Assigned Risk Plan.

Published / Reviewed Date

Reviewed: May 08, 2019

Download File

California’s Low Cost Automobile Insurance Program
File Name: 2019-FAQ-English.pdf
File Size: 0.23MB

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