Short answer: California's Low Cost Auto Insurance Program (CLCA) is a state-sponsored program that sells basic liability coverage to good drivers who meet income limits. You generally need a valid California license, a vehicle worth $25,000 or less, a good driving record or new-driver status, and household income under the program's limits, which are $39,900 for one person in 2026.
Who qualifies
According to the program's qualifications page and FAQ, you must:
- Have a valid California driver's license (the eligibility questionnaire says an AB 60 license is accepted)
- Own a vehicle valued at $25,000 or less
- Be at least 16 (applicants under 18 must be legally emancipated)
- Have a good driving record or be a new driver
- Meet the income limits
The questionnaire adds that the car must be a private passenger vehicle with at least four wheels, garaged at a California address where you live, and that no more than two vehicles can be registered in your name.
2026 income limits
The program FAQ lists these maximum household incomes:
| Household size | Maximum income |
|---|---|
| 1 | $39,900 |
| 2 | $54,100 |
| 3 | $68,300 |
| 4 | $82,500 |
| 5 | $96,700 |
A "household" means everyone listed on a federal or state income tax return. You'll need to prove income, for example with a tax return, W-2, pay stub, or proof of enrollment in a program such as CalFresh or Medi-Cal, according to the California Department of Insurance's 2025 report to the Legislature.
What it covers, and what it doesn't
CLCA is liability coverage that meets California's financial responsibility law. It pays for injuries and damage you cause to others. It doesn't repair your own car. If you have a car loan or lease, your lender will usually require collision and comprehensive coverage, so CLCA alone may not satisfy the loan. See California's minimum car insurance requirements for how the state minimums work.
How to apply
Take the eligibility questionnaire at mylowcostauto.com, apply online, or call the program at 866-602-8861. You can also apply through a licensed agent or broker at no extra cost. The Department of Insurance says a temporary insurance card is issued once payment is processed, and an insurance company is assigned to the policy within 20 days.
Bottom line
If you're a good driver on a tight budget with an older car that's paid off, check CLCA before buying a regular minimum-limits policy. If you don't qualify, a Good Driver Discount policy may still lower your price.
Questions? Contact Alishahi Insurance or call (877) 711-4545.
Frequently asked questions
Who qualifies for California Low Cost Auto Insurance?
Good drivers or new drivers age 16 and up with a valid California license, a vehicle worth $25,000 or less, and household income under the program limits.
What is the CLCA income limit for one person in 2026?
$39,900 for a one-person household, per the program's FAQ.
Does CLCA cover damage to my own car?
No. CLCA is liability coverage for injuries and damage you cause to others.
How do I apply for CLCA?
Take the questionnaire at mylowcostauto.com, call 866-602-8861, or apply through a licensed agent or broker.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.