California New Low Cost Auto Insurance Program Expanded

California has just passed Senate Bill 20, sponsored by Insurance Commissioner Garamendi. It is to start on April 1 (not a fools joke).

It is a Low Cost Automobile Insurance program allowing low income drivers to opt for the liability auto insurance for under $400 a year. With the new legislation in place it will be expanded to the counties of Alameda, Orange, Riverside, Sand Bernardino and Sand Diego.

Plans are in the workings to also expand the program to the counties of: Contra Costa, Imperial, Kern, Sacramento, Santa Clara, San Jaquin, San Mateo and Stanislaus.

In the words of Senator Martha Escutia "My goal in creating the Low Cost Auto Insurance Program six years ago was to provide an affordable alternative for consumers who are required to have, but simply cannot afford a conventional policy. The expansion of the program to additional California counties is a blessing for many working families who are searching for affordable auto insurance."

This auto insurance program has been created in 1999 and originally applying to the Los Angeles and San Francisco Counties. With the new legislation in place it will encompass 16 counties.

The terms for it are that to qualify for this program the family income must be lower then 2.5 times the Federal poverty level of $24,000 for a single individual, $33,000 for two people and $50,000 for a family of four and the insured vehicle’s total value needs to be under $20,000. There are also some minimum driving record requirements for it. For more information please call 866-602-8861

Here you also read what I wrote about this developing program in January.