ACIC Opposes Low Cost Auto Program

July 11, 2005

The Association of California Insurance Companies remains opposed to legislation that would expand California’s pilot, low-cost auto insurance program from two counties to statewide, according to ACIC President Sam Sorich.

The bill, SB 20 by Sen. Martha Escutia (D-Whittier), was approved this week by the Assembly Insurance Committee and will be considered next by the Assembly Appropriations Committee.

ACIC testified at this week’s committee hearing against SB 20, which would extend the program’s sunset date to 2011 and expand the program to all California counties. The program now exists only in Los Angeles and San Francisco counties.

“ACIC is not opposed to the low-cost auto insurance program,” Sorich said. “However, we believe that more experience is needed to determine whether the program should be continued, let alone expanded.

“Under current law, the program will continue through the remainder of this year and throughout 2006. We believe that the Legislature should examine the program’s 2005 experience and then decide whether the program merits continuation and expansion to other counties.”

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