How California’s Low-Cost Auto Insurance Program Can Help Low-Income Drivers in 2025

By Eugene Bruno on January 10, 2025

Auto insurance in California is already expensive, and with California increasing minimum coverage limits in 2025, costs are only going up. This will make it even harder for many drivers to afford the insurance required to drive legally.

For low-income drivers, California’s Low-Cost Auto Insurance Program (CLCA) offers affordable coverage that meets the state’s mandatory insurance requirements but at lower limits. By making auto insurance accessible, CLCA helps ensure that more Californians can drive legally and responsibly, thereby reducing the number of uninsured drivers on the road.

Why CLCA Matters More Than Ever

California already has the highest rate of uninsured drivers in the U.S., with 16.6 percent of drivers lacking coverage—far above the national average of around 12 percent. The rising cost of insurance due to increased minimum limits will likely push this number even higher, making programs like CLCA crucial in preventing an even greater surge of uninsured motorists. CLCA offers lower-cost insurance options for qualifying drivers, providing them with a basic level of coverage at a more affordable rate.

The current coverage limits for CLCA are:

• $10,000 per person for injury or death
• $20,000 per accident for injury or death
• $3,000 for property damage

While these limits are lower than standard policies, they allow low-income drivers to comply with the law and avoid harsh penalties for driving uninsured.

Understanding Proposition 213: The Penalty for Driving Uninsured

Uninsured drivers should be aware of Proposition 213. Passed in 1996, Prop 213 significantly limits the legal rights of uninsured drivers involved in accidents even if they are not at fault. Specifically, the law prevents uninsured drivers from recovering non-economic damages, also known as pain and suffering. This means that if you’re hurt by a negligent driver but don’t have auto insurance, you can only get your bills paid, but you will not be compensated for your pain and suffering, which is a large portion of a settlement.

Prop 213 means that, without insurance, you may face significant financial hardship because you will not be fully compensated by the at-fault driver. Thus, CLCA helps to avoid that problem by allowing eligible drivers to obtain affordable coverage and avoid being uninsured.

Who Qualifies for CLCA?

To be eligible for CLCA, drivers must:

• Have a valid California driver’s license
• Meet income eligibility requirements (e.g., 250% of the federal poverty level)
• Own a vehicle valued at less than $25,000
• Have a good driving record or be a new driver

How to Apply

Applying for CLCA is simple. To find out if you qualify, visit mylowcostauto.com or call 866-602-8861. The program ensures that responsible drivers who may struggle with high premiums still have access to legal insurance coverage.

Contact Eugene Bruno & Associates for Help

With rising insurance costs in 2025, programs like CLCA will become even more vital for low-income drivers. At the same time, Proposition 213 remains a critical reminder of why maintaining coverage is essential. By taking advantage of CLCA, eligible drivers can stay on the road legally, protect themselves from financial risks, and avoid the harsh consequences of driving uninsured.

If you’ve been involved in an accident and the driver was uninsured, there are steps you can take. For legal guidance, reach out to the San Diego auto accident lawyers at Eugene Bruno & Associates by calling 1-888-BRUNO-88 (1-888-278-6688). Our law firm has been listed in The National Trial Lawyers Top 100, and lead attorney and firm founder Eugene Bruno has been recognized by Expertise as one of the Best Car Accident Lawyers in San Diego. We can help.