The State of California developed the California Low Cost Auto Insurance Program (CLCA program) to provide income eligible, good drivers with access to affordable automobile liability insurance. Each policy provides liability coverage for the vehicle's primary driver and eligible secondary drivers. The CLCA policies are limited to no more than two policies per person. The Program provides affordable liability only auto insurance that meets the state's financial responsibility laws.
The California Compulsory Financial Responsibility Law requires every driver and every owner of a motor vehicle to maintain financial responsibility (liability coverage) at all times. Notwithstanding the coverage amounts required by section 16056 of the vehicle Code, a low-cost automobile policy issued under the program shall satisfy the financial responsibility requirements of Sections 4000.37, 16021, and 16431 of the Vehicle Code.