News: 2007 Press Release

SACRAMENTO - State Insurance Commissioner Steve Poizner announced today plans to complete his expansion of the California Low Cost Automobile Insurance Program (CLCA) to the entire state of California. Commissioner Poizner is working to make the program available to residents in the final 16 California counties - Alpine, Colusa, Del Norte, Glenn, Inyo, Lassen, Mariposa, Modoc, Mono, Nevada, Plumas, San Luis Obispo, Sierra, Siskiyou, Tehama and Trinity. 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 am pleased to announce that expansion of the program into these sixteen counties will provide an affordable insurance option to residents in every county in the State of California."

Senate Bill 20 (Escutia) authorized the Commissioner to launch the program throughout the state upon his determination of need in each county, based on statistical data analysis and local community input.

"Based on a review by my department, I have initially determined the need for this program in these sixteen counties," added Commissioner Poizner. "I plan to hold town hall meetings in each of these communities in September and October to directly gauge their insurance needs."

The program had sold 34,161 policies since its inception. The program is administered by the California Automobile Assigned Risk Plan and the policies are issued by California licensed insurance companies. The program is 100% unsubsidized by government funding. 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. Beginning in April 2006, the department began expanding the program statewide. The program is now available in Los Angeles, San Francisco, Alameda, Fresno, Orange, Riverside, San Bernardino, San Diego, Contra Costa, Imperial, Kern, Sacramento, San Joaquin, San Mateo, Santa Clara, Stanislaus, Merced, Monterey, Santa Barbara, Sonoma, Tulare, and Ventura Counties. This summer, Commissioner Poizner determined that the program should also be made available to Amador, Butte, Calaveras, El Dorado, Humboldt, Kings, Lake, Madera, Marin, Mendocino, Napa, Placer, San Benito, Santa Cruz, Shasta, Solano, Sutter, Tuolumne, Yolo and Yuba Counties. Pending local community feedback and Commissioner Poizner's subsequent determination of need for the newest 16 counties, the CLCA program will be available to every county in the state.

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.)