Calif. Low Cost Auto Program Expanded to 11 Counties
California Insurance Commissioner Steve Poizner has expanded the California Low Cost Automobile Insurance program to Amador, Butte, Calaveras, El Dorado, Humboldt, Placer, San Benito, Shasta, Sutter, Tuolumne and Yuba counties. The program is expected to go into effect in early October, once rates are set in each of the newly added counties.
The expansion announcement followed a series of community town hall meetings and a determination of need analysis conducted by the California Department of Insurance in each of the 11 counties, the DOI said. Poizer expressed that the program expansion should help uninsured drivers to comply with the law and to better protect all motorists from potential losses.
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 for under $400 a year and as little as under $300 a year in many counties. Since its inception, more than 33,000 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 Auto Program is self-sustaining. Rates are set in each county so that premiums are sufficient to cover losses and expenses in each county.
The California Low Cost Automobile Insurance Program initially began in 1999 as a pilot program in Los Angeles and San Francisco. A new law, SB 20, later authorized the Commissioner to launch the program throughout the state upon his determination of need in each county. With the addition of the 20 new counties, the Low Cost Automobile Insurance program will be available in 42 California counties.
For more information call 866-60-AUTO-1 (866-602-8861).
Source: CDI
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