California Agents Asked to Inform Customers on Auto Financial Responsibility

California Insurance Commissioner Dave Jones and state Sen. Ricardo Lara on Thursday urged Californians to make sure they are meeting their obligation to carry minimum liability insurance coverage on their vehicles and announced resources to help educate motorists and make it easier to get affordable coverage.

Since Jan. 2 when a new law was put in place more than 76,000 new drivers have been issued driver’s licenses under Assembly Bill 60, which enables those who can’t prove they entered the United States legally to get driver’s licenses.

The California Department of Insurance also sent a letter to insurance agents and brokers licensed to sell auto insurance reminding them that new drivers may need help navigating and understanding the financial responsibility law and their obligation to carry auto insurance, and to help watch out for scammers and schemes targeting the new population of drivers.

The next step in reducing the number of uninsured drivers and making California’s roads and highways safer is to reduce the number of uninsured motorists, Jones and Lara, D-Bell Gardens, said.

“Driving in California is a privilege, not a right,” Jones said in a statement. “As newly-licensed drivers hit the road, it’s important that they do so legally, with proper automobile insurance coverage. Properly trained drivers who know and follow California’s rules of the road are safer drivers and are involved in fewer collisions. This makes driving safer for everyone.”

Additionally the two addressed Lara’s Senate Bill 1273, which passed in 2014, that made changes to California’s Low Cost Auto Program that make it easier for new licensed drivers to qualify for the affordable coverage program.

“Getting auto insurance is the law and for some who can’t afford it, we have the Low Cost Auto Program,” Lara said. “Of the roughly 25 million vehicles on California roads, an estimated four million remain without auto insurance coverage due to the high costs of standard insurance premiums. Now, thanks to SB 1273, the Low Cost Auto Program is expanded and affordable auto insurance options remain accessible for many low-income Californians, including those who may newly qualify as a result of AB 60.”

CDI is offering workshops through community based organizations.