Guides
State low-cost auto insurance programs
Which states run low-cost car insurance programs, who qualifies for California's CLCA and New Jersey's dollar-a-day SAIP, and what to do if your state has none.
Only a few states run subsidized or reduced-benefit car insurance programs for low-income drivers. The best known are California's Low Cost Automobile Insurance Program (CLCA), for income-eligible drivers with good records, and New Jersey's Special Automobile Insurance Policy (SAIP), a $365-a-year medical-only policy for Medicaid recipients. Everywhere else, the fallback for drivers who cannot find affordable coverage is the state's assigned risk plan or residual market insurer, which guarantees access but not a low price.
California Low Cost Automobile Insurance Program (CLCA)
The California Department of Insurance describes the CLCA, created in 1999, as liability coverage at affordable rates for income-eligible drivers. It is administered by the California Automobile Assigned Risk Plan and sold through certified agents.
Who qualifies (California Insurance Code 11629.73 and the CDI):
- Annual gross household income no higher than 250% of the federal poverty level.
- A good driving record: no more than one property-damage-only accident where you were principally at fault, or one point for a moving violation, in the past three years, and no at-fault accident causing injury or death in that time.
- A vehicle worth $25,000 or less (11629.71).
- A valid California license. Since January 1, 2015, drivers with less than three years of driving experience can participate, with a surcharge; licenses issued under AB 60 are accepted.
What it covers. The statute sets liability limits of $10,000 per person and $20,000 per accident for injuries and $3,000 for property damage, and says the coverage satisfies the state's financial responsibility requirements. Insurers must make uninsured motorist and medical payments coverage available for an extra premium. Those limits are well below the 30/60/15 required on ordinary California policies since January 1, 2025, so the policy protects you far less if you cause a serious crash.
Price and how to apply. Premiums vary by county, and there is no broker fee. Check eligibility at mylowcostauto.com or 866-602-8861. See the California state guide for the state's other rules.
New Jersey: SAIP and the Basic Policy
New Jersey offers two lower-cost alternatives to its standard policy.
Special Automobile Insurance Policy (SAIP)
Often called "dollar-a-day" insurance, SAIP is for drivers enrolled in federal Medicaid with hospitalization, according to the New Jersey Department of Banking and Insurance. It costs $365 a year, or $360 if paid up front. It covers emergency treatment right after a crash and treatment of serious brain and spinal cord injuries up to $250,000, plus a $10,000 death benefit.
SAIP is unusual in what it leaves out: it has no liability coverage, no collision and no comprehensive. It satisfies New Jersey's insurance requirement for eligible drivers, but if you cause a crash, nothing pays the other people's damages.
Basic Policy
Any New Jersey driver can choose the Basic Policy instead of a standard policy. It includes $15,000 of personal injury protection per person (up to $250,000 for certain severe injuries) and $5,000 of property damage liability. Bodily injury liability of $10,000 is optional, uninsured motorist coverage is not included, and it comes with the limited right to sue. The department describes it as suited to people with few family responsibilities and few assets. By comparison, the standard policy minimum rose to 35/70/25 on January 1, 2026. See New Jersey.
Maryland Automobile Insurance Fund
Maryland created its own insurer of last resort, the Maryland Automobile Insurance Fund (MAIF), which does business as Maryland Auto. It is not an income-based discount program; it insures Maryland drivers who cannot get coverage in the private market. Its prices reflect higher-risk drivers, but it gives them a legal way to insure.
Every state: assigned risk plans and residual markets
Every state has a residual market mechanism, most often an assigned risk plan, that guarantees coverage to drivers that insurers in the voluntary market turn down. Insurers licensed in the state share those drivers. These plans usually offer coverage at or near the minimum, and prices are often higher than the regular market because the drivers are higher risk. See assigned risk plans: insurance of last resort.
Comparing the options
| Program | Who it is for | Liability coverage | Notable limits |
|---|---|---|---|
| California CLCA | Income up to 250% of poverty level, good record, car worth $25,000 or less | 10/20/3 | Much lower limits than a regular policy |
| New Jersey SAIP | Medicaid recipients with hospitalization | None | Medical coverage only, $365 a year |
| New Jersey Basic Policy | Any NJ driver | $5,000 property damage; $10,000 injury optional | No UM; limited right to sue |
| Maryland Auto (MAIF) | Drivers private insurers decline | Standard limits available | Not income-based |
| Assigned risk plans (all states) | Drivers declined in the voluntary market | Usually minimum limits | Often priced above the regular market |
If your state has no low-cost program
Most drivers live in states without a subsidized program. These steps usually do more than searching for one:
- Get quotes from nonstandard and regional insurers as well as national brands. Prices for the same driver vary widely. See how to find cheap car insurance without dangerous gaps and nonstandard auto insurers: who they serve and what to watch.
- Drop collision and comprehensive on a low-value car you own outright, but keep liability. state minimum vs full coverage: which do you need? explains the trade-off.
- Ask about payment plans with low down payments and compare installment fees (paying in full vs monthly: installment fees and discounts).
- Ask an agent about the assigned risk plan only after the voluntary market has turned you down; it is a safety net, not usually the cheapest choice.
- Do not drive uninsured. Penalties can include fines, license and registration suspension and an SR-22 requirement that makes future insurance more expensive (penalties for driving without insurance).
Program rules change; confirm details with your state insurance department or the state car insurance requirements lookup before you buy.
Key takeaways
- California's CLCA offers 10/20/3 liability coverage to good drivers with household income up to 250% of the federal poverty level and a car worth $25,000 or less.
- New Jersey's SAIP costs $365 a year for Medicaid recipients but provides no liability coverage; its Basic Policy is another reduced-coverage option.
- Maryland runs a state-created insurer of last resort, Maryland Auto, for drivers the private market declines.
- Every state has an assigned risk plan or similar residual market, which guarantees coverage but not a low price.
- Low-cost programs trade price for protection; understand what you are not covered for before you buy.