California's Low Cost Automobile Insurance program recently took effect throughout several areas in the state, meaning low-income, good drivers are eligible for liability insurance at an affordable rate. Insurance Commissioner John Garamendi expanded the program to Alameda, Fresno, Orange, Riverside, San Bernardino, San Diego, Kern, and Stanislaus counties. A $400-per-year rate was necessary in those areas, due to their nearly half a million uninsured drivers.
According to the California Department of Insurance, there are more than three million motorists who drive throughout the state on a daily basis without auto insurance.
“It's a disaster waiting to happen every mile they travel,” said Garamendi.
The system was created in 1999 as a pilot program to provide low-income, good drivers in Los Angeles and San Francisco counties with access to affordable auto insurance. Over 24,000 policies have been issued since the inception of the program through March 2006.
Good drivers are defined as having no more than one at-fault, property-damage-only accident, or one point for a moving violation in the past three years. They also cannot have an at-fault accident involving bodily injury or death in the past three years and no felony or misdemeanor convictions for a violation of the vehicle code. Family income cannot exceed 250 percent of the federal poverty level and the value of an insured vehicle must not exceed $20,000.
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