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Published: May 17, 2012
Updated: April 19, 2013
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. Each brochure contains information in all 11 languages.
Publication Series
- This publication is part of the California’s Low Cost Automobile Insurance Program training module.
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Table of Contents
No table of contents, please refer to details below.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 $400 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 good driving record
- Are at least 19 years of age
- Have been continuously licensed to drive for at least three years
- Own a vehicle that is valued at $20,000 or less
- Meet the income eligibility requirements
- Full annual premium
- $125 deposit with balance to be paid within 30 days
- $100 deposit with balance to be paid in 6 bi-monthly installments*
- $125 deposit with balance to be paid in 5 bi-monthly installments*
- 15% deposit with balance to be paid in 6 bi-monthly installments*
- $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 (effective 2013)
| HOUSEHOLD SIZE | MAXIMUM INCOME |
|---|---|
| 1 PERSON | $27,925 |
| 2 PEOPLE | $37,825 |
| 3 PEOPLE | $47,725 |
| 4 PEOPLE | $57,625 |
| 5 PEOPLE | $67,525 |
| 6 PEOPLE | $77,425 |
| 7 PEOPLE | $87,325 |
| 8 PEOPLE | $97,225 |
- Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.
- A “Household” is all persons who occupy a housing unit and who are related by blood, marriage, adoption or guardianship (i.e., members of one family). 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.
If you qualify, here are the items you'll need to enroll:
- A valid driver license
- Current vehicle registration
- The initial deposit for payment
- Proof of income-you just need to provide ONE of the following documents:
a. A copy of applicant’s federal or state income tax return for the last year
b. A 1099 Form
c. A W-2 Form
d. A payroll stub
e. A Medi-Cal card
f. An employer verification letter
g. A Social Security or pension letter
h. A utility company Lifeline verification
County Premiums*
Effective 2013, the annual premium for these 58 counties are:
| County of Residence | Liability Premium | County of Residence | Liability Premium |
|---|---|---|---|
| Alameda | $287.00 | Orange | $347.00 |
| Alpine | $248.00 | Placer | $248.00 |
| Amador | $248.00 | Plumas | $256.00 |
| Butte | $256.00 | Riverside | $248.00 |
| Calaveras | $248.00 | Sacramento | $287.00 |
| Colusa | $256.00 | San Benito | $231.00 |
| Contra Costa | $287.00 | San Bernardino | $248.00 |
| Del Norte | $256.00 | San Diego | $248.00 |
| El Dorado | $248.00 | San Francisco | $287.00 |
| Fresno | $231.00 | San Joaquin | $287.00 |
| Glenn | $256.00 | San Luis Obispo | $231.00 |
| Humboldt | $256.00 | San Mateo | $287.00 |
| Imperial | $248.00 | Santa Barbara | $231.00 |
| Inyo | $248.00 | Santa Clara | $287.00 |
| Kern | $248.00 | Santa Cruz | $231.00 |
| Kings | $231.00 | Shasta | $256.00 |
| Lake | $256.00 | Sierra | $248.00 |
| Lassen | $256.00 | Siskiyou | $256.00 |
| Los Angeles | $347.00 | Solano | $256.00 |
| Madera | $231.00 | Sonoma | $256.00 |
| Marin | $287.00 | Stanislaus | $287.00 |
| Mariposa | $248.00 | Sutter | $287.00 |
| Mendocino | $256.00 | Tehama | $256.00 |
| Merced | $231.00 | Trinity | $256.00 |
| Modoc | $256.00 | Tulare | $231.00 |
| Mono | $248.00 | Tuolumne | $248.00 |
| Monterey | $231.00 | Ventura | $248.00 |
| Napa | $256.00 | Yolo | $256.00 |
| Nevada | $248.00 | Yuba | $248.00 |
*If there is a single male driver in the household who is 19-24 years old the liability rate is surcharged.
Call Today!
1-866-602-8861
mylowcostauto.com
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.
Download File
California’s Low Cost Automobile Insurance Program
File Name: clca_2013_en.pdf
File Size: 0.91MB
For More Information
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Sponsors
California Department of Insurance
Notes
Filed Under
Automobiles ♦ Insurance ♦
Copyright
© 2013 California Department of Insurance.
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