News: 2007 Press Release
For Release: June 13, 2007
Media Calls Only: 916-492-3566
Commissioner Steve Poizner Announces Expansion of State's Low Cost Auto Insurance Program
Program Provides Eligible Motorists with Coverage for under $400 a year; Ten Additional Counties to be Targeted in Statewide Effort
SACRAMENTO - State Insurance Commissioner Steve Poizner announced today plans to further expand the California Low Cost Automobile Insurance Program (CLCA) to ten additional counties -Santa Cruz, Solano, Marin, Madera, Placer, Napa, Yolo, Mendocino, Kings, and Lake. The affordable program provides eligible low income, good drivers with state-required liability coverage for under $400 a year.
"More than 3 million motorists travel California's roads without auto insurance," said Commissioner Poizner. "This is a recipe for disaster. This program is an affordable option for qualified low income drivers. I hope to expand the program to every county in California."
Senate Bill 20 (Escutia) authorized the Commissioner to launch the program throughout the state upon his determination of need in each county. A town hall meeting will be held this Friday in Santa Cruz County to determine the county's need for the program.
"Based on a review by my department, I have initially determined the need for this program in these ten counties," added Commissioner Poizner. "I plan to hold town hall meetings in each of these communities to directly gauge their insurance needs."
The California Low Cost Automobile Insurance program was created in 1999 to provide low-income good drivers with access to affordable liability automobile insurance. With recent additions allowed by legislation, the program is now available to eligible motorists in 22 counties: Alameda, Contra Costa, Fresno, Imperial, Kern, Los Angeles, Merced, Monterey, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Francisco, San Joaquin, San Mateo, Santa Barbara, Santa Clara, Sonoma, Stanislaus, Tulare, and Ventura counties. The program is administered by the California Automobile Assigned Risk Plan and the policies are issued by California licensed insurance companies; the program is not subsidized or otherwise supported by government funding. As of May 31, 2007, the program had sold 32,803 policies since its inception.
To be eligible for CLCA, applicants 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; or at-fault accident involving bodily injury or death in the past three years; and no felony or misdemeanor conviction for a Vehicle Code violation) and gross annual household income may not exceed 250 percent of the federal poverty level ($25,525 for a single motorist; $34,225 for a family of two; $51,625 for a household of four.) The value of the insured vehicle must not exceed $20,000.
For more information about the CLCA Program consumers may call 1-866-60-AUTO-1 or (1-866-602-8861).
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