California Low Cost

California Low Cost Automobile Insurance Program

Welcome to the California Low Cost Automobile Insurance Program homepage.

The CALIFORNIA LOW COST AUTOMOBILE INSURANCE PROGRAM (LCA) was implemented in 2000 by the California Legislature to address the problem of uninsured motorists in the state.  The purpose of this program is to provide affordable automobile liability insurance to eligible drivers who demonstrate financial need, and meet other program qualification requirements.  California's Low Cost Automobile Insurance program is administered by the California Automobile Assigned Risk Plan (CAARP).  Low Cost Automobile applications are assigned to insurance companies from CAARP's administrative office.  Licensed fire & casualty agents, or producers are certified by CAARP to write the Low Cost Program.  Prospective policyholders will be put in contact with licensed and certified agents/brokers to purchase this coverage.  





Important Notice

The new 2017 Federal Poverty Guidelines are now posted on our website and effective/deployed on EASi 2.0 February 15, 2017.

Please contact the Plan Office Customer Service Toll free number at 866-602-8861 for any inquiries.

Notice to Producers Writing Low Cost Insurance

The California Department of Insurance would like to make all certified CAARP producers writing Low Cost insurance aware of the "Traffic Tickets/Infractions Amnesty Program" that is in place October 1, 2015 through March 31, 2017.  Detail of the program can also be viewed at the link below.  Please reference the link for consumers who apply for Low Cost insurance and are deemed not eligible for the program as a result of MVR violations.  This may or may not change their eligibility depending on their specific violations.         

Primary Online Producer Begins Operations On February 1, 2016

The California Automobile Assigned Risk Plan (CAARP) launched the Primary Online Producer (POP) program on February 1, 2016.  This program, which includes enhancements to the website, will allow consumers to apply for the CLCA (CA Low Cost) automobile insurance product directly online without having to visit a producer’s office.  Working in conjunction with the California Department of Insurance and its vendor RHA, AIPSO launched this program to allow for greater connectivity for consumers with producers, without disruption to a consumer’s workday due to travel to a producer’s office, while providing web access to auto insurance similar to the voluntary market approach.

AIPSO has contracted with Pacific Preferred Insurance as the POP to provide this service to low-income good drivers, in California. will allow consumers to apply for the insurance coverage via a “quick application” or “full application” process, provide a means to upload eligibility documents in a safe and secure manner, and allow for an electronic payment option, if desired.  Pacific Preferred is excited to begin offering this program and provide better access for this product to consumers.  Pacific Preferred is a certified Covered California agency, with extensive experience bringing a wide variety of insurance products to consumers.  The agency’s staff is fluent in both English and Spanish.

Third Party Designee Procedure

To comply with 2013 Cal. Stat. 380 (former AB 1804), CA. Ins Code §396, which requires an insurer to maintain a verifiable process or adopt a procedure that allows the applicant or policyholder of a personal auto policy to designate one additional person to receive notices, termination, expiration, nonrenewal, or cancellation for nonpayment of premium - this new procedure has been added

If the applicant elects a third party designee, producers must do the following:

  • Once you save/validate and print the private passenger or low cost application, the printed pdf form will include a new section (Section 15 on low cost apps, Section 19 on private passenger apps) that must be completed by hand.  If the applicant selects to elect a third party designee, then the producer must go to (either CAARP or Low Cost website) – and print/download the form – under “forms” titled - Third Party Designee.  The form must be completed and submitted with the application.      
  • If the applicant declines the third party designee option, then the producer must decline the box on the form and submit it with the application.  (Refer to Low Cost/Private Passenger section of application)          

The Third Party Designee form can be used if electing a third party designee midterm on the policy.  As of February 1, 2016, the process will be further automated.

Enhancements to California's Low Cost Auto Insurance Program

Click here for an important announcement regarding enhancements to California’s Low Cost Auto Insurance (CLCA) Program that will take effect January 1, 2015 in compliance with California Senate Bill 1273.   The announcement also outlines amendments to the CLCA Program that are effective December 1, 2014 in response to directives from California's Department of Insurance.  Included with the announcement are screenshots of changes that have been made to the CLCA Program’s Electronic Application Submission Interface (EASi), as well as two informational documents concerning CLCA Program eligibility and an Important Note for producers submitting CLCA applications.

Revised Convenience Fee Rates 

Effective 12/1/2014, the convenience fee pricing for use of debit card payments for CAARP Private Passenger and CA Low Cost Auto processed through EASi has been revised and reduced by our vendor, Official Payments:

California Low Cost: $1.95

CAARP: $2.95

(Prior pricing was at $3.99 for California Low Cost and $19.99 for CAARP)

Credit Card convenience fees will remain unchanged:

California Low Cost: $3.99

CAARP: $19.99

The current mailing address for the California Low Cost Automobile (LCA) application, the California Assigned Risk Automobile Plan’s (CAARP’s) private passenger and commercial applications, and other related Plan forms will be:

California Automobile Assigned Risk Plan

P.O. Box 6530

Providence, RI 02940-6530 


General Low Cost Information

California Low Cost Automobile Insurance Program (LCA) Coverages and Eligibility Requirements: Liability limits of $10,000 bodily injury or death per person, $20,000 bodily injury for each accident and $3,000 property damage for each accident have been established by the legislature.  These limits will satisfy the state’s current financial responsibility laws. Optional coverages consist of Medical Payments Coverage at $1,000 per person and Uninsured Motorist Bodily Injury at limits of 10,000/$20,000. Physical Damage (Comprehensive & Collision) coverage IS NOT available under this Program. Low Cost is available to good drivers (as described in the CA Insurance code).  The good driver requirements apply to both the applicant and any licensed driver in their household.  

The cost of this insurance is based on the applicant’s county of residence. No Outside Premium Financing is allowed.

Take the Low Cost Eligibility Test available at the link on the left of this screen.  If you are eligible for the program, you will be asked for your zip code and provided with a list of local agents/brokers.  If you have questions contact CAARP/Low Cost at 866-602-8861.