California Low Cost Auto Insurance Program


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california low cost insurance program logo

The CLCIP Logo

On a daily basis, more than one million uninsured drivers are on California roads. The California Low Cost Automobile Insurance Program (CLCAIP) was established so that people with low income could get proper insurance coverage for as little as [$22.00] per month.

Census shows that in 2009, the program accepted over 7,000 applications which was nearly 1,000 more than the previous year. Conceived as a community service effort by California Insurance Commissioner Steve Poizner to draw uninsured motorists into getting fully legal auto insurance coverage for their cars no matter how hardly hit they were by the economy.

Established by the Legislature in 1999, pursuant to code 11629.7, the program was designed to encourage good drivers into acquiring basic car insurance at an affordable rate who demonstrate the financial need.  Per the rules of the Program, every admitted automobile insurance company in California will have to take their “fair share” of low cost applications.

The Department of Insurance state that it’s not difficult to meet the minimum criteria for the program.

Eligibility requirements consist of:

  • Being a good driver with no more than one at-fault property damage mishap
  • Zero at-fault accidents relating to bodily harm or death in the last three years including no felony or misdemeanor arrests for infringing the Driver’s Code
  • The income eligibility limit to get into the program for one person is [$27,075.00], for two people its [$36,425.00], and for a family of four it’s [$55,125.00]
  • The value of an insured vehicle cannot be over [$20,000.00]

Why enroll in the CLCA?

Drivers in California who meet the eligibility requirements and whom are reconsidering their current insurance plan would do well to apply for California’s Low Cost Auto Insurance Program (CLCA).  The program will keep them legally insured with less than a 15% down payment and minimal  monthly payments.

With today’s poor economy and an alarming increase in statewide uninsured driver rates, California must continue to increase its efforts to expand the CLCA initiative

– stated the president of the Association of California Insurance Companies

The Mission

California Insurance Commissioner Steve Poizner

Insurance Commissioner Steve Poizner

The California Low Cost Auto Insurance Program makes life much easier for everyone by decreasing the amount of uninsured drivers on the road and supplying an opportunity for those with lower incomes to get full coverage.

Did you know?

Nearly 25% of California’s drivers are without adequate car insurance. With the CLCA, economical liability insurance is offered to law abiding drivers whose income is over 250% of the federal government poverty level. For the majority of automobile drivers the legal minimum for various levels of liability insurance is [$15,000.00] for single claims, [$30,000.00] each incident and [$10,000.00] in property damage.

For CLCA members the costs are much less. For example, for a single claimant the minimum is [$10,000.00] instead of [$15,000.00].

Problems for the CLCA

During Schwarzenegger’s reign as governor, he vetoed bipartisan legislation that would have increased CLCA’s budget for lower income families. He felt that extending the program through 2015 was untimely, and questioned the efficiency of the program due to the low rate of participation.

Automobile liability insurance is the important initial step each motorist must take before thinking about their travel plans. The California Low Cost Insurance Program is affordable for eligible drivers so there is no excuse for drivers not to have insurance. The fact is that it is illegal to drive without insurance, and taking advantage of the California Low Cost Insurance Program is a smart economical move.

How to get ahold of the CLCA

Consumers can call 1-866-602-8861 to find out if you qualify for the CLCA program and to find a local agent near you.  The California Low Cost Automobile Insurance Program is administered by the California Automobile Assigned Risk Plan (CAARP)

View the CLCA Commercial