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CA Department of Insurance

California's Low Cost Auto Insurance

031924 CA Consumer Alert

California's Low Cost Auto Insurance

July 23, 2024 - As required by Senate Bill 1107, beginning in 2025, the mandatory limits for liability coverage for private passenger automobiles will increase. The California Low Cost Auto (CLCA) Insurance Program's limits will remain unchanged. The increase in state-wide insurance has already impacted the program, as proven by the 83% increase in active policies shown in 2023. Here's a closer look at what this means for consumers:

Impact of Increased Liability Limits on Standard Policies

Starting in 2025, all standard auto insurance policies in California will see higher minimum liability limits:

  • $30,000 for bodily injury or death per person (up from $15,000)
  • $60,000 for bodily injury or death per accident (up from $30,000)
  • $25,000 for property damage per accident (up from $5,000)

Potential Implications for Consumers

  1. Higher Premiums for Standard Policies: With these increased liability limits, premiums for standard auto insurance policies are expected to rise. This increase reflects the higher coverage amounts those insurers must provide.
  2. Potential Shift to CLCA: As standard policy premiums increase, low-income drivers who find the higher costs unaffordable may seek alternatives. The CLCA program, with its lower coverage limits and more affordable premiums, could become the only viable option.

Things to Consider

The upcoming increase in liability limits for standard auto insurance policies in California will likely lead to higher premiums. As a result, the California Low Cost Auto Insurance Program may see a surge in interest from drivers priced out of standard policies.

Maintained CLCA Eligibility and Coverage:

  • Up to $10,000 per person in case of bodily injury or death
  • Up to $20,000 per accident in case of bodily injury or death
  • Up to $3,000 for property damage

While these limits are lower, the program is designed to provide a basic level of coverage for those who cannot afford higher premiums.

To Qualify for this Program, You Must:

  • Have a Valid California Driver’s License
  • Meet Income Eligibility Guidelines
  • Own a Vehicle Valued at $25,000 or Less
  • Be at Least 16 Years of Age *Applicants under 18 must be legally emancipated
  • Have a Good Driving Record or are a New Driver

This shift highlights the importance of balancing affordability with adequate protection on the road. Overall, the Department of Insurance always recommends staying protected by being insured at all times. Speak to a local agent today to discuss your options.

To learn more about CLCA, visit www.mylowcostauto.com or call 866-602-8861 to speak to an expert.


Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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