Calif. Low Cost Auto Program Implemented Statewide

October 29, 2007

California Insurance Commissioner Steve Poizner announced his final determination of need for the California Low Cost Automobile Insurance program in Alpine, Colusa, Del Norte, Glenn, Inyo, Lassen, Mariposa, Modoc, Mono, Nevada, Plumas, San Luis Obispo, Sierra, Siskiyou, Tehama and Trinity Counties. With these additional counties, the program will soon be available in every county in California. The program is expected to go into effect in the new counties by the end of December, once rates are set in each of the newly added counties.

Commissioner Poizner’s announcement follows a series of community town hall meetings in each of the 16 counties to examine the need for the program.

“Driving without insurance is illegal, and nearly 20,000 motorists in these counties are uninsured,” said Commissioner Poizner.

Motorists driving without insurance can have their vehicle registrations suspended as part of SB 1500, a new law designed to reduce the risk of economic losses sustained as the result of collisions involving uninsured motorists.

The low cost auto insurance program provides eligible low-income good drivers with auto liability coverage, currently for under $400 a year and as little as under $300 a year in many counties. Since its inception, more than 35,000 policies have been issued. Program policies are issued by California licensed insurers and the program is administered by the California Automobile Assigned Risk Plan.

The California Low Cost Automobile Insurance Program is 100 percent unsubsidized by taxpayers. The program is self-sustaining. Rates are set in each county so that premiums are sufficient to cover losses and expenses in each county.

For more information about the program, call 866-60-AUTO-1 (866-602-8861).

Source: CDI