INSURANCE COMMISSIONER POIZNER URGES DRIVERS NOT TO CANCEL AUTO INSURANCE TO SAVE MONEY, OFFERS AFFORDABLE OPTION FOR SAN DIEGANS
In light
of skyrocketing unemployment rates and harsh economic conditions,
Insurance Commissioner Poizner today offered struggling San Diego
residents an affordable automobile insurance option through the
California Low Cost Automobile Insurance program.
“In
today’s economy, many San Diego drivers are looking for ways to cut
their expenses and some are undoubtedly considering eliminating auto
insurance,” said Commissioner Poizner. “But driving without insurance
is illegal and puts all travelers at risk. I urge all San Diego
motorists to shop around to find the best auto insurance product to fit
their needs. The Low Cost Auto Insurance program is one affordable way
for drivers to comply with the law and protect all motorists from
potential losses.”
Motorists
driving without insurance can have their vehicle registrations
suspended 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 and as little as
under $300 a year in many counties. In San Diego, an LCA policy costs
$265 per year. Since its inception, approximately 45,000 policies have
been issued statewide. In San Diego, 856 policies have been issued
since the LCA program was made available there in 2006. Program
policies are issued by California licensed insurers and the California
Automobile Assigned Risk Plan administers the program.
The
California Low Cost Automobile Insurance Program is 100 percent
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.
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.
-
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 ($26,000
for a single person, $35,000 for two persons and $53,000 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.
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