The Low Cost Automobile Insurance Program (termed LCA or LCAIP) began in 2000 for only the residents of Los Angeles County and the City and County of San Francisco. In 2005, the California Legislature passed Senate Bill 20. Effective April 1, 2006 this legislation expanded the LCAIP to the counties of Alameda Fresno, Orange, Riverside, San Bernardino and San Diego.

This bill also authorized the CA Insurance Commissioner to launch the Program throughout the state as need is determined. California Automobile Assigned Risk Plan (CAARP) administers the program but program policies can by issued by California licensed insurers.

To qualify for the LCAIP, the insurance applicant must reside in an eligible county; have financial needs as well show they are a good driver. A good driver means in part within the last 3 years you can have no more than 1 at-fault accident and no at-fault accident involving injury or death. Also you cannot have a felony or misdemeanor conviction for a violation of the vehicle code.

The current program has limits such that the family income cannot exceed 250 percent of the federal poverty level ($24,500 for a single person, $33,000 for 2 persons and $50,000 for a family of 4). Other restrictions might also apply, such as the current value of the vehicle to be insured cannot be more than $20,000.

The liability limits under the LCAIP are 10/20/3, which are less than the state mandatory limits of 15/30/5, but these lower limits will satisfy the state's current financial responsibility law.

No Physical Damage Coverages are offered through the program but other optional coverages are such as medical payments. Without any optional coverages, auto insurance under this program can cost as little as $268 a year, but rates vary since they are set by each county.