Calif. Commissioner Wants to Expand Low Cost Auto Program to 8 Counties

January 23, 2006

California Insurance Commissioner John Garamendi announced plans to expand the California Low Cost Automobile Insurance Program CLCA) to eight counties in 2006.

Recent legislation — Senate Bill 20 — recently expanded the program to six counties, effective April 1, 2006. SB 20 also allowed the Commissioner to launch the program statewide if he determined it was necessary in each county.

Thus, the Commissioner plans to add Sacramento, Imperial, Kern, Contra Costa, San Mateo, Santa Clara, San Joaquin and Stanislaus counties to the program.

The low-cost auto program was created in 1999 to provide low-income drivers with state-required liability coverage for less than $400 per year. The program is administered by the California Automobile Assigned Risk Plan. Los Angeles and San Francisco were the first counties included in the pilot program.

Town hall meetings are scheduled in the latest eight counties to assist the public. For more information about the meetings, visit www.insurance.ca.gov.

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