CA Offers Affordable Auto Insurance As Drivers Cancel

In light of skyrocketing unemployment rates and harsh economic conditions, Insurance Commissioner Poizner two days ago offered struggling El Centro residents an affordable auto insurance option through the California Low Cost Automobile Insurance program.

"One out of four Imperial County residents is unemployed, and that means that too many families are having trouble making ends meet," said Commissioner Poizner. "Some families might think about canceling their auto insurance to save a buck, but driving without insurance is illegal and puts all drivers at risk. The California Low Cost Auto Insurance Program is one affordable way for unemployed or low income drivers to get insured. I urge all drivers to shop around for the best product and rate for their individual needs."

Motorists driving without auto insurance can have their vehicle registrations suspended, cancelled or revoked by the Department of Motor Vehicles under SB 1500, which became effective Jan. 1, 2006, as part of legislation 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 good drivers with auto liability coverage, currently for under $400 a year. In Imperial County, an LCA policy costs $161 per year. Since its inception, approximately 45,000 policies have been issued statewide. In Imperial County, 128 policies have been issued since the LCA program was made available there in 2006. 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 not subsidized 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.

There are a number of eligibility requirements for the program, including:

* An applicant must be a "good driver" - no more than one at-fault property damage only accident, or one point for a moving violation in the past three years.

* An applicant must be at least 19 years of age with 3 or more years of continuous driving experience.

* No at-fault accident involving bodily injury or death in the past three years and no felony or misdemeanor conviction for a violation of the Vehicle Code.

* Family income cannot exceed 250 percent of the federal poverty level ($27,075 for a single person, $36,425 for two persons and $55,125 for a family of four).

* The value of an insured vehicle must not exceed $20,000.

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

The California Low Cost Automobile Insurance Program was established in 1999 as a pilot program in Los Angeles and San Francisco. SB 20, passed in 2005, authorized the Commissioner to launch the program throughout the state upon his determination of need in each county. Beginning in April 2006, the department began expanding the program statewide. Commissioner Poizner made the LCA program available to every county in the state in December 2007. For more information please visit the California Department of Insurance Web site at www.insurance.ca.gov.