California Low Cost Automobile Insurance Program

California Low Cost Automobile Insurance Program

The CALIFORNIA LOW COST AUTOMOBILE INSURANCE PROGRAM (LCA) was implemented in 2000 by the California Legislature to address the problem of uninsured motorists in the state. The purpose of this program is to provide affordable automobile liability insurance to eligible drivers who demonstrate financial need, and meet other program qualification requirements. California's Low Cost Automobile Insurance program is administered by the California Automobile Assigned Risk Plan (CAARP). Low Cost Automobile applications are assigned to insurance companies from CAARP's administrative office. Licensed fire & casualty agents, or producers are certified by CAARP to write the Low Cost Program. Prospective policyholders will be put in contact with licensed and certified agents/brokers to purchase this coverage.

California Low Cost Automobile Insurance Program (LCA) Coverages and Eligibility Requirements: Liability limits of $10,000 bodily injury or death per person, $20,000 bodily injury for each accident and $3,000 property damage for each accident have been established by the legislature. These limits will satisfy the state’s current financial responsibility laws. Optional coverages consist of Medical Payments Coverage at $1,000 per person and Uninsured Motorist Bodily Injury at limits of 10,000/$20,000. Physical Damage (Comprehensive & Collision) coverage IS NOT available under this Program. Low Cost is available to good drivers (as described in the CA Insurance code). The good driver requirements apply to both the applicant and any licensed driver in their household.

The cost of this insurance is based on the applicant’s county of residence. No Outside Premium Financing is allowed.

Prospective Insureds can take the Low Cost Eligibility Test by clicking here. If you are eligible for the program, you will be asked for your zip code and provided with a list of local agents/brokers. If you have questions, contact CAARP/LCA at (866) 602-8861.

Mailing Address

California Automobile Assigned Risk Plan
P.O. Box 6530
Providence, RI 02940-6530

Office Hours

Monday - Friday 8:00 am - 4:30 pm PT

Phone

(866) 602-8861

Fax

(415) 421-4013

Email

caarp@aipso.com

California Low Cost Automobile Insurance Program

IF YOU ARE A PROSPECTIVE INSURED, CLICK THE LOGO ABOVE TO SEE IF YOU ARE ELIGIBLE.
PROVIDING YOUR ZIP CODE WILL DISPLAY A LIST OF INSURANCE AGENTS IN YOUR AREA.

AIPSO's Office Schedule: November 28-29

All AIPSO offices - the Johnston RI home office, Mayfield Heights OH office, regional offices, and remote offices - will be closed on Thursday, November 28 and Friday, November 29 in observance of the Thanksgiving holiday.

All AIPSO offices will open and resume regular business hours on Monday, December 2.

Announcements

Effective January 1, 2022 CAARP will be implementing a new Private Passenger Pool (PPP). Twenty percent of the Low Cost applications will be assigned to the PPP and will be issued by CAARP on policies in the name of CAARP. All policy processing services will be performed by AIPSO. All other aspects will remain the same. The assignment notice you receive will inform you if the application was assigned to the PPP or was assigned to a designated company. 

Low Cost Program Enhancements

Certification of Income Eligibility Form:

In instances when an applicant for a California Low Cost automobile insurance policy is unable to provide documentation required to prove income eligibility, the Certification of Income Eligibility form can be used.

This form can be used in the timeframe of one year after the expiration of the current State of Emergency declaration. 

The form is posted on the Forms section of this page and should be included with the completed and signed application.

E-Signature:

Certified producers may now utilize their own e-signature product/process to secure the necessary signatures at the application process. 

If you have any questions please email the Plan at caarp@aipso.com and we will provide assistance. 

Revised Convenience Fee Rates 

Effective 12/1/2014, the convenience fee pricing for use of debit card payments for CAARP Private Passenger and CA Low Cost Auto processed through EASi was revised and reduced by our vendor, Official Payments:

California Low Cost: $1.95

CAARP: $2.95

(Prior pricing was at $3.99 for California Low Cost and $19.99 for CAARP)

Credit Card convenience fees will remain unchanged:

California Low Cost: $3.99

CAARP: $19.99

California Low Cost
PO Box 6530   Providence, RI 02940
Monday - Friday  8:00 am - 4:30 pm PT
Phone: (866) 602-8861  Fax: (415) 421-4013  Email: caarp@aipso.com