California’s low-cost auto insurance program is the subject of a proposed overall average 15.4% rate increase for 2027, and consumers have a scheduled opportunity to comment. The California Department of Insurance’s notice published October 9, 2026 sets a December 2 hearing in Los Angeles and a written-comment deadline at the end of that day. The verified notice describes a proposal. It does not establish an approved increase, a 2027 effective date or a change to any particular driver’s bill.
For a household considering California Low Cost Automobile Insurance, or CLCA, the immediate questions are practical: Does the household qualify? What protection would the policy provide? How can the household ask CDI to consider affordability before a rate decision?
Who the proposal concerns
CLCA is a liability-insurance program for people who meet its income and other eligibility requirements. CDI’s program explanation, which is undated, identifies the California Automobile Assigned Risk Plan, or CAARP, as its administrator and directs consumers to the official program website and certified agents.
The October notice says CAARP submitted the rate recommendation. Its proposed overall average is a program-level figure, not a verified increase for every CLCA policy. It also does not describe a statewide increase for every California auto insurance policy. A reader cannot use the average alone to calculate a renewal premium or determine what a different insurer would charge.
The consumer implication is to keep two decisions separate: evaluating whether CLCA fits the household’s needs and evaluating the proposed rate change. Eligibility and coverage guidance help with the first decision; the filing and the public comment process are relevant to the second.
When and where consumers can speak
According to CDI’s October 9 hearing notice, printed pages 1345–1346, the hearing is scheduled for December 2, 2026, at 10:00 a.m. in the Department of Insurance Hearing Room, 300 South Spring Street, Los Angeles, CA 90013. The notice says it will continue until everyone present who wishes to comment has commented, or until 11:30 a.m., whichever comes first.
Interested people may present oral or written testimony. Someone planning to speak should account for the stated ending rule rather than assume the hearing will run throughout the day. The written-comment route offers another way to put concerns before the department without attending in Los Angeles.
The notice describes facilities accessible to people with mobility impairments and asks people with sight or hearing impairments to contact the proceeding’s contact person about special arrangements. The verified evidence provides no remote-attendance link or confirmation of Spanish interpretation at this hearing. Contact CDI directly to clarify an access need before making plans.
Send written comments to the proceeding contact
The notice’s contact and deadline sections identify Michael Riordan, an attorney with CDI, at riordanm@insurance.ca.gov and (415) 538-4226. His mailing address is 1901 Harrison Street, Oakland, CA 94612.
Written materials submitted outside the hearing must be received by the end of December 2, 2026. Email is expressly permitted. The notice does not specify a clock hour for that deadline; it also says late materials will not be considered. For mailed comments, plan around receipt by CDI, rather than the date an envelope is sent.
A useful consumer comment could describe how the household uses its vehicle, explain a concern about keeping coverage affordable, and ask how the proposal would apply to its circumstances. Identify the proceeding as LC 26–04 so the concern is tied to the proposal described in the notice. These are suggested ways to frame a comment, not evidence that the proposal will produce a particular household outcome.
CDI warns that comments and associated contact information become part of the public record and may be released. Review personal information before including it in a submission.
Ask for the records behind the recommendation
The notice provides a route to examine the proposal beyond its headline percentage. On printed page 1348, CDI says the initial statement of reasons, notice of proposed action and proposed regulation text are available without charge on request to the contact person. The application and supplemental rulemaking information can be inspected by prior appointment at 1901 Harrison Street, Oakland, between 9:00 a.m. and 4:30 p.m., Monday through Friday.
Consumers can ask which proposed charges would apply to their policy and what explanation supports them. The underlying actuarial application and exhibits were not obtained for this report, so the evidence does not establish a cause for the requested increase or support a county-by-county premium calculation.
CDI describes the governing process in the same notice: Insurance Code section 11629.72(c) calls for CAARP to submit an annual proposed rate and surcharge schedule for Commissioner approval. The notice also describes a hearing before rate amendments and a Commissioner-approved Plan of Operations referenced by Title 10, section 2498.6 of the California Code of Regulations. This legal summary is attributed to CDI’s notice; separate current statutory and regulatory texts were not independently verified.
Check eligibility before treating CLCA as an option
The official program’s undated “Who Qualifies?” guidance lists a valid California driver’s license, income eligibility, a vehicle valued at $25,000 or less, and a good driving record or new-driver status. Applicants must be at least 16; those younger than 18 must be legally emancipated.
Those conditions identify the intended applicants without deciding whether an individual reader qualifies. The verified evidence does not establish a current household-income dollar table, so this report does not reproduce one. Use the official eligibility process and a certified agent for a determination based on the household’s circumstances.
The proposal notice does not establish a change to those eligibility conditions. A proposed rate increase alone is insufficient evidence that an applicant has gained or lost eligibility.
Understand the limits and the coverage tradeoff
California’s standard minimum-liability guidance remains 30/60/15. The California DMV’s undated insurance requirements page lists $30,000 for injury or death to one person, $60,000 for injury or death to multiple people in an accident, and $15,000 for property damage.
CLCA has a specific, lower-limit exception. CDI’s auto insurance guide, revised February 5, 2025, distinguishes CLCA’s 10/20/3 limits from the standard minimums and says the CLCA policy satisfies California financial-responsibility requirements. The October notice describes that exception as well. This is an attributed statement of regulator guidance, rather than a separate verification of the operative statute.
The program’s undated coverage explanation specifies $10,000 for bodily injury per person, $20,000 per accident and $3,000 for property damage. Those are coverage limits, not premium prices.
Basic liability protects against covered injury or damage to others. The program says basic coverage does not pay the policyholder’s own medical or vehicle-repair costs, and CLCA policies do not cover theft or physical damage to the insured vehicle. It describes optional medical-payment and uninsured-motorist bodily-injury coverage, without establishing their prices for 2027.
For consumers, meeting financial-responsibility requirements and protecting their own vehicle are separate questions. Ask an agent to explain the actual policy and any optional coverage before deciding whether it addresses the household’s risks.
Use Spanish guidance and ask about participation help
The official, undated Spanish FAQ explains eligibility, basic coverage and the application process. It provides the program’s help number, 1-866-602-8861. Spanish-speaking households can use that resource to prepare questions about eligibility and coverage; it does not confirm Spanish-language services for the December hearing.
CDI’s undated consumer intervenor guidance describes the Public Advisor’s role in helping people participate in department proceedings. It distinguishes public participation from compensation, which depends on eligibility and a substantial contribution to a rate decision. The CLCA notice separately describes a Petition to Participate for qualifying advocacy or witness fees. Ordinary comments are invited separately; reimbursement is not automatic.
What to do with the proposal now
Keep the current policy’s coverage information available, review the official eligibility and coverage descriptions, and write down the questions the proposed change raises for your household. If you want CDI to consider those concerns, use the hearing or the written-comment route documented in its notice.
This report relies on official notice and consumer guidance. No final approval, operative 2027 schedule, independent event-specific reporting or underlying actuarial exhibits were verified. The next document needed to assess an individual premium would be an applicable approved schedule or policy-specific information, rather than the proposed average alone.
Read CDI’s hearing notice, check the official CLCA eligibility and coverage pages, and send any written comments so CDI receives them by the end of December 2, 2026.