Yes, California offers a low-income auto insurance program named CLCA to satisfy state requirements for an affordable price. To be eligible, you'll need a valid CA license and registration, your car must be valued at $25,000 or less, meet income requirements, are aged 16 or older, and have a good driving record. Plans cover you up to $10,000 per person and $20,000 per accident for bodily injury or death with up to $3,000 for property damage.
Cheapest Low-Income Car Insurance in California
Updated: February 10, 2025
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Key Takeaways
California offers the CLCA program to help low-income drivers find car insurance that can be as low as $244 yearly on average.
The cheapest options for most low-income drivers from traditional providers include CSAA, AAA, CIG and GEICO.
Low-income drivers can save the most on car insurance by comparing providers and exploring discounts.
Does California Offer Low Income Car Insurance?
How Much Does CLCA Car Insurance Cost?
On average costs for the CLCA program range anywhere from $244 - $966 depending on your county in the state. If you've had a license in the state for over 3 years you'll also receive discounted rates. If you are using a debit card for payment there will be a fee of $1.95 and for a credit card it costs $3.99 for processing.
CLCA Income and Good Driver Elligibility Requirements Explained
The table below summarizes the income and good driver requirements:
CLCA Requirement Category | Requirement Details |
|---|---|
Good Driver Requirements |
|
Income Requirements |
|
*A “household” means all persons listed on a federal or state income tax form.
Applying For CLCA Coverage
You can start the application process for California's CLCA program on www.mylowcostauto.com or by calling 866-602-8861. You'll need your valid drivers license and vehicle registration, an initial deposit, and one of the documents listed on mylowcostauto's website to verify your eligibility.
CONSIDER MORE COVERAGE IF YOU CAN AFFORD IT
While you're offered a decent amount of coverage with California's low-income program, it may not be enough. If you're at-fault in an accident you could be on the hook for damages to your vehicle and others involved, including any legal fees. Research by California law firm Easton and Easton found that the average settlement tends to be anywhere between $20,000 – $30,000, but damages paid out can be more depending on the severity. So while the low purchase price may be enticing, you may save more in the long term with better coverage.
Cheapest Car Insurance Companies for Low-Income Drivers in California
CSAA offers California's cheapest minimum coverage for low-income drivers, regardless of age and driving history.
| CSAA | Young Drivers | $15 |
| CSAA | Adults | $14 |
| CSAA | Seniors | $16 |
| CSAA | Drivers With a Speeding Ticket | $18 |
| CSAA | Drivers With a DUI | $50 |
| CSAA | Drivers With an Accident | $18 |
Drivers in California must meet these minimum car insurance requirements:
- $30,000 in bodily injury liability per person
- $60,000 in bodily injury liability per accident
- $15,000 in property damage liability per accident
However, if you're leasing or financing a vehicle, you'll need liability coverage split at 100/300/100, along with comprehensive and collision protection. However, if you are enrolled in CLCA this does not apply.
Compare Cheap Low-Income Car Insurance Providers
Use the table below to find the most affordable provider for your driver profile.
Data filtered by:Results filtered by:
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Age Range:30-59
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Driving Record:Clean
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Credit Score:Good
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Coverage Level:State Minimum Liability Only
| CSAA | $14 | $173 |
| AAA | $36 | $437 |
| GEICO | $40 | $474 |
| Progressive | $40 | $485 |
| Kemper | $47 | $561 |
Cheapest Car Insurance for Families With Low Income in California
GEICO offers the cheapest monthly car insurance rates for low-income families in California: $75 for married couples with teens, $130 for single parents with teens and $39 for adding a spouse without a teen.
Data filtered by:Results filtered by:
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Family Type:Married Couple with Teen
| GEICO | $903 | $75 |
| Farmers | $1,091 | $91 |
| Travelers | $1,093 | $91 |
| State Farm | $1,094 | $91 |
| Progressive | $1,146 | $96 |
| CIG | $1,233 | $103 |
| Kemper | $1,311 | $109 |
| Allstate | $1,353 | $113 |
| Nationwide | $1,420 | $118 |
*Rates for couples and single parents with teens apply to a 16-year-old driver. Those for a married couple without children are based on a 40-year-old male with a clean driving record.
Tips to Save On Car Insurance for Low-Income Drivers
Here are some tips to help lower your premiums in California:
- 1
Choose minimum coverage
Minimum coverage typically offers the lowest premium to meet legal standards. However, it won’t fully cover expenses if you're at fault in an accident.
- 2
Compare quotes
Gather quotes from various insurance providers to find the most affordable plan. Use resources like provider websites, independent brokers, agents and online comparison tools for a thorough rate assessment.
- 3
Look for discounts
Insurance companies offer discounts for good students, clean driving records, military service members or veterans and completing a defensive driving course.
- 4
Increase your deductible
Setting a higher deductible on collision or comprehensive coverage can decrease premiums. Ensure you can afford the higher cost if you file a claim.
- 5
Consider pay-per-mile insurance
Pay-per-mile insurance is ideal for low-mileage drivers. It reduces costs by combining a low base rate with charges based on miles driven, billing only for actual use.
- 6
Bundle your policies
Drivers can cut costs significantly by bundling home and auto insurance. Allstate, for example, can save you up to 15% on average compared to the California average for bundled policies.
- 7
Get a cheaper car
Your vehicle’s make, model and year affect insurance costs due to repair and replacement expenses. Choosing a cheaper car to insure, like an older, reliable vehicle, can significantly lower annual premiums.
Minimum Car Insurance Requirements in California
Drivers in California must meet these minimum car insurance requirements:
- $15,000 in bodily injury liability per person
- $30,000 in bodily injury liability per accident
- $5,000 in property damage liability per accident
However, if you're leasing or financing a vehicle, you'll need liability coverage split at 100/300/100, along with comprehensive and collision protection.
WHY MINIMUM COVERAGE MAY NOT BE RIGHT FOR YOU
Minimum coverage covers the other driver’s costs if you're at fault in an accident. However, it doesn't pay for your car repairs or legal fees. If you drive frequently and have the budget, consider more coverage for better protection. Accidents can be costly, and extra coverage helps shield you from big bills.
Cheap Low-Income Car Insurance in California: Bottom Line
CSAA offers the most affordable car insurance for most low-income drivers in California, including those with poor driving records. To find the best deal, explore various providers through different methods.
Low-Income Auto Insurance in California: FAQ
Affordable car insurance can be hard to find for low-income drivers in California. Here are answers to common questions about saving money.
What is the cheapest car insurance for low-income drivers in California?
Minimum coverage is typically the most affordable for drivers on a tight budget. However, you'll likely need more comprehensive coverage if you're financing or leasing a vehicle. CSAA has the cheapest monthly rates in California: $14 for minimum coverage and $41 for full coverage.
Does California have a state-supported low-income car insurance program?
California has a program to help low-income drivers secure affordable car insurance.
Does your income affect the cost of car insurance in California?
Income doesn’t directly affect car insurance costs in California. Factors like driving history and vehicle type play a bigger role.
How We Chose the Cheapest Car Insurance for Low-Income Drivers
Study Overview
MoneyGeek analyzed California auto insurance rates using data from the California Department of Insurance and Quadrant Information Services.
Data Acquisition, Depth and Analysis
MoneyGeek analyzed 328,384 quotes from 14 companies across 370 ZIP codes to determine the average cost of car insurance for drivers with low income in California.
Sample Driver Profile
We used a sample driver profile with the following attributes to determine average car insurance rates for low-income drivers in California:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
To determine rates for specific driver profiles, we adjusted factors such as age, family status and driving history.
Our study defines seniors as 60 or older, young drivers as 22 to 29 and adults as 30 to 59. Married couples with a child include 40-year-old male and female drivers with a 16-year-old teen. Single parents with children are 40-year-old male or female drivers with a 16-year-old teen.
Coverage Levels and Deductibles
Our data shows rates for minimum coverage, which follows the requirements set by California law, and offers affordable options for low-income drivers.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.