California Low Cost

California Low Cost Automobile Insurance Program

California Low Cost Automobile Insurance Program

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.

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.

Prospective Insureds can take the Low Cost Eligibility Test by clicking here. 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/LCA at (866) 602-8861.

Mailing Address

California Automobile Assigned Risk Plan
P.O. Box 6530
Providence, RI 02940-6530

Office Hours

Monday - Friday 8:00 am - 4:00 pm PT


(866) 602-8861


(415) 421-4013


Street Address

California Automobile Assigned Risk Plan
1111 Broadway, Suite 1670
Oakland, CA 94607



New Street Address

The CAARP office has relocated to Oakland, California. ALL PHONE NUMBERS REMAIN THE SAME. The new street address for the office is:
1111 Broadway, Suite 1670
Oakland, CA 94607

Important Notice

The new 2018 Federal Poverty Guidelines are now posted on our website and effective/deployed on EASi 2.0 February 1, 2018.

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

Low Cost Program eligibility expanded to include applicants and operators 16 to 18 years of age.

Highlights of the program enhancement are as follows:

  • Applicant eligibility is expanded to include persons ages 16 to 18. Applicants include a person age 16 through 17 who is an emancipated minor in accordance with California statues or a person age 18 who is financially independent.
  • A family with an adult driver covered under a Low Cost auto policy that has one or more additional drivers ages 16 to 18 in the household may qualify for coverage subject to a surcharge. The additional drivers can only be added to new policies on or after 2/1/2018 and renewal policies on or after 4/1/2018. Drivers cannot be added to existing policies.

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 took effect January 1, 2015 in compliance with California Senate Bill 1273.   The announcement also outlines amendments to the CLCA Program 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 was 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