California Low Cost Auto · State program
California Low Cost Auto Insurance
The California Low Cost Auto Insurance Program (CLCA) is a state program, sponsored by the California Department of Insurance, that helps income-eligible good drivers buy the liability insurance the law requires. Billy is a certified producer for the program and helps you apply in English or Spanish.
- 10/20/3Program liability limits, accepted by state law
- $25,000Highest car value the program allows
- Certified producerBilly can enroll you in the program
Who qualifies
- A valid California driver's license (AB 60 licenses are accepted), age 16 or older; drivers under 18 must be emancipated.
- A car worth $25,000 or less.
- Household income at or below 250% of the federal poverty level. Published limits: $39,900 for one person, $54,100 for two, $68,300 for three, $82,500 for four, $96,700 for five. Your household is everyone listed on your federal or state tax return.
- A good driving record for the past 3 years: no more than one at-fault property-damage accident or one moving-violation point, no at-fault injury accident, and no felony or misdemeanor Vehicle Code conviction.
- Newer drivers with less than 3 years of driving can join, with a surcharge.
Income limits are updated from time to time. Check the current figures on the program's FAQ page or ask Billy.
What it covers
| Coverage | Limit |
|---|---|
| Bodily injury liability | $10,000 per person, $20,000 per accident |
| Property damage liability | $3,000 |
| Medical payments (optional) | $1,000 per person |
| Uninsured motorist bodily injury (optional) | $10,000 per person, $20,000 per accident |
The program does not offer collision or comprehensive (theft, fire, vandalism) coverage. California's general minimum for other policies is 30/60/15, but state law says a Low Cost Auto policy still meets the requirement.
What it costs and how you pay
Example: in Los Angeles County, liability only costs $448 a year for one driver licensed for three or more years (program rate calculator, October 2026). Rates are lower in many other counties, and younger or newer drivers pay more. Prices are set by the program, not by Billy.
- Pay in full, or 20% down and 7 installments, with a small fee per installment.
- No broker fee may be charged on a Low Cost Auto policy.
- The program is permanent: a 2023 law removed its old end date.
What to have ready
- Your California driver's license
- Your car's year, make, model and VIN
- Proof of household income, such as pay stubs or a tax return
- Your current insurance card, if you have one
Common questions
Does a Low Cost Auto policy meet California's insurance law?
Yes. State law says a California Low Cost Auto policy meets the financial responsibility requirement even though the general minimum limits rose in 2025.
Can I apply with an AB 60 driver's license?
Yes. The program accepts valid California driver's licenses, including AB 60 licenses.
I have been driving less than three years. Can I join?
Yes. Newer drivers can join, with a surcharge.
Can someone charge me a broker fee for a Low Cost Auto policy?
No. California rules don't allow a broker fee on a Low Cost Auto policy.
Sources
Checked October 25, 2026. Laws, programs and rates change, so confirm anything important with the source or with Billy.
- California Low Cost Auto Insurance Program: FAQ (opens in a new tab)
- CDI: CLCA 2026 report to the Legislature (PDF) (opens in a new tab)
- California Low Cost Auto Insurance Program: rate calculator (opens in a new tab)
- California Insurance Code section 11629.71 (CLCA limits meet the law) (opens in a new tab)
- CDI: summary of broker fee regulations (opens in a new tab)
- California DMV: insurance requirements (opens in a new tab)