Low-income car insurance in California

Q: Does California have car insurance for low-income individuals?

Yes , California has a car insurance program for low-income individuals. It’s called California’s Low-Cost Auto Insurance Program.

California government car insurance for low-income drivers

Low-income drivers can apply for California’s Low-Cost Auto Insurance Program to get affordable coverage and meet the legal car insurance requirements in California.

To qualify for the California low-income program, you must meet the following requirements:

Hold a valid California driver’s license.
Meet the income eligibility guidelines based on your household size. For example, a family of four can have a
maximum income of $78,000.
Own a vehicle with a value of $25,000 or less.
Be at least 16 years old and legally emancipated if you are under 18.
Have a clean driving record or be a newly licensed driver.

The program’s rates depend on factors like your age and the county you live in. You can buy coverage through any participating insurance agent or apply online.

Here are the minimum car insurance requirements in California:

Minimum liability coverage limits	30/60/15
Average annual premium	$551
Other types of insurance required (if any)	-

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Keep in mind that if you have a loan on your car, you must carry full coverage, which includes both collision and comprehensive coverage.

Best low-income car insurance in California

GEICO ranked as the top choice for low-income car insurance in California.

People on a tight budget still deserve good service from their car insurance company. We collected data on the top car insurance companies in California and compared them based on state minimum coverage rates, financial stability, and customer satisfaction using scores from J.D. Power and the National Association of Insurance Commissioners (NAIC).

Here are the best car insurance companies for low-income drivers in California.

Company	Average annual premium	J.D. Power	AM Best	NAIC	Insurance.com score
GEICO	$367	830	A++	0.91	4.02
Progressive	$433	809	A+	0.65	3.75
State Farm	$569	826	A++	0.7	3.65
CSAA Insurance (AAA)	$457	822	A	0.75	3.62
Travelers	$629	810	A++	0.49	3.51
Mercury Insurance	$458	794	A	0.84	3.36
Nationwide	$712	794	A+	0.64	3.15
Allstate	$717	816	A+	0.65	3.15
Farmers	$774	810	A	0.8	2.91
Auto Club Enterprises (AAA)	$623	832	A+	2.21	2.77
Kemper Insurance	$492	736	A-	2.16	2.18

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Cheapest low-income car insurance in California

Based on state minimum coverage, we found that the cheapest car insurance company in California is GEICO at an average rate of $367 a year.

Price is the number one consideration when working with a tight budget. We gathered rates from car insurance companies in California to find the cheapest options on average.

Company name	Average annual premium	Average monthly premium
GEICO	$367	$31
Progressive	$433	$36
CSAA Insurance (AAA)	$457	$38
Mercury Insurance	$458	$38
Kemper	$492	$41
State Farm	$569	$47
Auto Club Enterprises (AAA)	$623	$52
Travelers	$629	$52
Nationwide	$712	$59
Allstate	$717	$60
Farmers	$774	$64
USAA	$410	$34

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PEOPLE ASK:

What can I do if I can’t afford car insurance in California?

If you can’t find affordable car insurance in California, try working with a local agent who knows the market and some of the smaller insurance companies available. Consider a usage-based program to reduce costs, reduce coverage, drive less and ask about additional discounts.

Car insurance discounts for low-income drivers in California

The best way to lower your car insurance rates is by using discounts. Low-income drivers in California can take advantage of several discounts to get more affordable coverage. The table below lists some common discounts and how much you could save.

Discount type	% Discount
Years Licensed	41%
Lower Annual Mileage	12%
Loyalty - Years Renewal With Company	11%
Years Insured	9%
Primary Use	9%
Multi Policy	9%
Marital Status	9%
Telematics	5%
Safety Devices	3%

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Methodology

170+

insurance companies analyzed

34,000+

ZIP codes examined

53M+

insurance quotes analyzed

National and state average rates are based on state minimum car insurance.

This data set is based on:

Bodily injury liability that matches the state minimum requirement
Property damage liability that matches the state minimum requirement
Any other state-required coverage, which may include personal injury protection, medical payments and
uninsured/underinsured motorist coverage
40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

Source:

California’s Low Cost Auto Insurance. "Who
Qualifies"? Accessed August 2025.

Low-income car insurance in California: Frequently asked questions

What is the cheapest car insurance company for low-income people?

In California, GEICO offers the cheapest car insurance with an average rate of $367. However, since this is based on average rates, your actual cost will vary, so it’s important to shop around.

Does California have car insurance for low-income individuals?

Yes, California has a car insurance program for low-income individuals. It’s called California’s Low-Cost Auto Insurance Program.

What happens if I can’t pay my car insurance?

If you don’t pay your car insurance bill, your policy will be canceled and you won’t have coverage. If you can’t make
a payment, contact your insurance company before the due date to ask about setting up an alternative payment
arrangement.