California Low Cost Program
What is the California Low Cost Automobile Insurance Program (CLCA)?
The primary goal of the California Low Cost Automobile Insurance Program (CLCA) is to provide an affordable auto insurance option to low-income good drivers.
California Law requires that all drivers be insured. However, too many low-income drivers remain uninsured because the costs of standard insurance premiums are beyond their financial reach. The California Low Cost Automobile Insurance Program provides affordable liability only auto insurance that meets the state’s financial responsibility laws.
What is the maximum limits this CLCA liability policy will cover?
Basic Liability Policy
- Bodily Injury liability per person – $10,000
- Bodily Injury liability per accident – $20,000
- Property Damage liability per accident – $3,000
(See annual cost for liability coverage – rates effective 5/11/2009)
What Is The California Low Cost Automobile Program?
The purpose of this Program is to provide low cost automobile liability insurance to good drivers who demonstrate 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 CALIFORNIA LOW COST AUTOMOBILE INSURANCE PROGRAM (CLCA) began as a pilot program in 2000 for residents of Los Angeles County and the City and County of San Francisco only. The California Legislature wanted to address the problem of uninsured motorists in the state, proposing the theory that most uninsured drivers in California go without liability insurance because of the cost, and that if affordable coverage was available, many drivers would purchase it.
In 2005, the California Legislature passed Senate Bill 20, which expanded the Program to the counties of Alameda, Fresno, Orange, Riverside, San Bernardino and San Diego, effective April 1, 2006. This legislation also authorized the Insurance Commissioner to launch the Program throughout the state upon determination of need in each county.
- Effective June 1, 2006, eight additional counties were introduced into the Program: Contra Costa, Imperial, Kern, Sacramento, San Joaquin, San Mateo, Santa Clara and Stanislaus.
- On March 30, 2007, the six additional counties of Merced, Monterey, Santa Barbara, Sonoma, Tulare and Ventura were added.
- On October 1, 2007, twenty more counties were added: Amador, Butte, Calaveras, El Dorado, Humboldt, Kings, Lake, Madera, Marin, Mendocino, Napa, Placer, San Benito, Santa Cruz, Shasta, Solano, Sutter, Tuolumne, Yolo and Yuba.
- On December 10, 2007, the final 16 counties of Alpine, Colusa, Del Norte, Glenn, Inyo, Lassen, Mariposa, Modoc, Mono, Nevada, Plumas, San Luis Obispo, Sierra, Siskiyou, Tehama and Trinity were added, making it a statewide Program.
The program is administered by the California Automobile Assigned Risk Plan and policies are written by California Licensed Insurance Companies.
The CLCA program is not subsidized by taxpayers. Rates are set and adjusted annually in each county so that the premiums collected are sufficient to cover losses and expenses in each county.
The California Low Cost Automobile Insurance Program is available statewide.