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CAARP Introduction, Part III: CA Low Cost Auto Ins. Program
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LCA Applicant Eligibility Requirements

There are 4 basic requirements to be eligible for the LCA Program. They are:
  • The applicant must be a resident of California
  • The applicant must be a "good driver" as defined in the CA Insurance Code
  • Household income requirement
  • Vehicle value requirement

Eligible Counties

The LCA Program is available to persons who are residents of California. Each county in California has its own premium rate. The county is determined by the applicant's zip code.

Good Driver

The applicant must be a good driver as defined by the CA Insurance Code:

  • The applicant must be at least 19 years old.
  • The applicant must be continuously licensed for the past three years with no suspensions or expired licenses during those 3 years.
  • The applicant cannot have any felony or misdemeanor convictions on their motor vehicle record.
  • The applicant can have no at fault accident involving bodily injury or death on their driving record.
  • The applicant cannot have more than 1 point OR 1 at fault accident with property damage only in the past three years.

Household Income

A household consists of all persons related by blood, marriage, registered domestic partnership, adoption or guardianship living under the same roof. Two non-related people living in the same living unit (such as roommates) would be considered to be 2 separate households. The applicant must reside in a household with a gross annual income that does not exceed 250% of the federal poverty level.All people in the household who are 18 years old or older must sign a privacy waver form (part of the application) that can be used by CAARP to verify the income of the individuals.

Note: The chart above will be updated when the Annual Update of the Health and Human Services Poverty Guidelines is published in the Federal Register by the Department of Health and Human Services.

Vehicle Value

The vehicle cannot be worth more than $20,000 at the time of the application as determined by the VLF code on the vehicle registration or by the current Blue Book value.

Other Eligibility Requirements

For the LCA Program eligibility, the applicant cannot be a college student claimed as a dependant on another person's income taxes.The vehicle cannot be used in business. If the vehicle is a pick-up truck or van with a load capacity of over 1,500 pounds, it would not be eligible regardless of how the vehicle is used.There can be no other auto liability insurance in the household. If one car is written though the LCA Program, all owned vehicles in the household must also be insured through the LCA Program.There cannot be any other liability insurance coverage in the household, however the applicant may purchase Physical Damage coverage elsewhere.

Consumers who are interested in obtaining the California Low Cost Automobile Insurance Program (LCA), can first call the toll-free number, 866-602-8861, and will be put through a series of 10 questions to determine their eligibility.
The 10 questions the callers are asked when calling the toll-free number are:

  1. What is your zip code? (To determine eligibility and rates)

  2. Are you at least 19 years old? (To be eligible answer must be yes)

  3. Have you been licensed continuously for the past three years or if new to the United States, licensed in the states for at least 18 months? (To be eligible answer must be yes)

  4. Have you had more than one moving violation or at fault accident with property damage only in the past three years? (To be eligible answer must be no)

  5. Have you had any at fault accident with bodily injury for the past three years? (To be eligible answer must be no)

  6. Do you have any felonies or misdemeanors on your driving record? (To be eligible answer must be no. Felonies and misdemeanors are counted for as long as they are on the applicant's motor vehicle report. Note: A DUI conviction can stay as long as 10 years on one's driving record, and some misdemeanors can stay on for as long as 7 years.)

  7. Is your car worth more than $20,000? (To be eligible answer must be no)

  8. Are you a college student who is declared as a dependant on someone's tax return? (To be eligible answer must be no)

  9. Is your vehicle used in business? (To be eligible answer must be no)

  10. How many people live in your household? (Enter number)
The above questions are asked of the consumer to pre-screen them for the LCA Program. It does not guarantee that they are eligible. If a caller goes through the questions and believes that they are eligible, they will be sent a list of certified producers (insurance agents) in their area.

Other Licensed Drivers

Through the LCA Program all licensed drivers must meet all eligibility requirements or they will not be eligible for coverage through the LCA Program. The LCA Program is not recommended for anyone who has youthful or newly licensed drivers in the household, as they will normally be excluded from coverage on the policy.


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© 2008, LunchTimeCE, Inc and AIPSO. All Rights Reserved.
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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