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CAARP Introduction, Part III: CA Low Cost Auto Ins. Program
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History and Background

The California Low Cost Auto Insurance Program (LCA) is for:
  • Low-income applicants
  • California Good Drivers

The California Low Cost Auto Insurance Program (LCA) provides:
  • Minimum liability limits only
  • Optional Medical
  • Optional Uninsured Motorist Bodily Injury

The History and Legislation of the Low Cost Auto Insurance Program (LCA)

The California Low Cost Automobile Insurance Program started with two California Senators each wanting a program to provide insurance for low-income good drivers. Senator Martha Escutia in Norwalk introduced SB171 and Senator Jackie Speier in San Francisco/San Mateo introduced SB527. The two bills were combined into one pilot program and signed into law on October 10, 1999. The Program went into effect on July 1, 2000.The California Automobile Assigned Risk Plan (CAARP) is the administrator of the California Low Cost Automobile Insurance Program. The administrative office for CAARP & LCA Program is located in San Francisco.All companies are required by law to take their share of LCA assignments, same as in CAARP. Only CAARP certified producers can submit applications to the California Low Cost Auto Insurance Program.
The coverages that are available in the LCA Program include Bodily Injury, Property Damage, Medical and Uninsured Motorist Bodily Injury.

Extent of Coverage

The limits of liability for the LCA Program are set lower than the state limits of 15/30/5. These lower limits do meet California's financial responsibility limits.The limits of the LCA Program are 10/20/3

  • $10,000 Bodily Injury per Person*
  • $20,000 Bodily Injury per Accident*
  • $3,000 Property Damage per Accident*
    *Meets California Financial Responsibility Limits

Optional coverages

  • $1,000 Medical Coverage
  • $10/20 Uninsured Motorist Bodily Injury (UMBI)

There is no Uninsured Motorist Property Damage or Physical Damage Coverage (Comp & Collision) available in this Program.


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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation.
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