News: 2007 Press Release

SACRAMENTO - Insurance Commissioner Steve Poizner today announced his final determination of need for the California Low Cost Automobile Insurance program in Alpine, Colusa, Del Norte, Glenn, Inyo, Lassen, Mariposa, Modoc, Mono, Nevada, Plumas, San Luis Obispo, Sierra, Siskiyou, Tehama, and Trinity Counties. With these additional counties, the program will soon be available in every county in California. The program is expected to go into effect in the new counties by the end of December, once rates are set in each of the newly added counties.

Commissioner Poizner's announcement follows a series of community town hall meetings in each of the sixteen counties to examine the need for the program. Based on those meetings and a determination of need analysis conducted by the California Department of Insurance, the Commissioner determined that the program should be expanded to include these sixteen additional counties.

"Driving without insurance is illegal, and nearly 20,000 motorists in these counties are uninsured," said Commissioner Poizner. "Many drivers simply cannot afford insurance, but uninsured drivers put all travelers at risk. The expansion of this program to these sixteen counties means that eligible motorists throughout the state will now have an affordable insurance option. This program will better enable Californians to comply with the law and 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, currently for under $400 a year and as little as under $300 a year in many counties. Since its inception, over 35,000 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 Automobile Insurance Program is 100% unsubsidized 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.

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, 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. On October 1, 2007, Commissioner Poizner also made the program 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, bringing the total to 42 California counties. With the addition of these 16 new counties, the Low Cost Automobile Insurance program will soon be available in every county in California.

To be eligible for the program, 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; and 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.

Additionally, family income cannot exceed 250 percent of the federal poverty level ($25,525 for a single person, $34,225 for two persons and $51,625 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).