Gov. Arnold Schwarzenegger is considering whether to extend the state’s low-cost auto insurance program, which offers bare-bones coverage to motorists who would otherwise drive without insurance — and break the law.
So far, few Sonoma County residents have signed up for the coverage, which costs $251 a year.
“It’s very important that this program be extended,” said Doug Heller, executive director of Consumer Watchdog, a Los Angeles-based nonprofit that tracks insurance issues. “The last thing we want is for people to be uninsured.”
The program will expire at the end of 2010 unless it is extended by lawmakers.
About one in four California drivers lacks auto insurance, according to Steve Poizner, the state’s insurance commissioner. It’s against the law and puts other drivers at risk, he said. Uninsured motorists can have their licenses suspended or revoked.
The low-cost insurance program was launched statewide in 2007, and so far about 45,000 policies have been sold. Premiums vary by county, ranging from $161 to $368.
But only 142 policies have been sold in Sonoma County. where an estimated 28,000 motorists had no insurance in 2007, according to state figures.
That doesn’t mean the program hasn’t been successful, said Molly DeFrank, a spokeswoman for the Department of Insurance. Many uninsured motorists who checked out the program found they could afford better coverage, she said.
The state hasn’t done enough to promote the program and insurance brokers often don’t tell customers about it, Heller said.
“This is bare-bones coverage, but it’s far better than being uninsured,” he said.
The coverage includes $10,000 for bodily injury or death per person in an accident, $20,000 for bodily injury or death per accident, and $3,000 property damage for each accident.
To qualify, motorists can’t earn more than 250 percent of the federal poverty level — $27,075 for a single person, $36,425 for a couple or $55,125 for a family of four.
The value of the insured vehicle can’t be more than $20,000.
An applicant must be a “good driver,” with no more than one at-fault, property-damage-only accident, or one point for a moving violation in the past three years.
An applicant must be at least 19 years old with three years’ driving experience. In addition, a driver must have no at-fault accidents involving injury or death in the past three years and no felony or misdemeanor convictions for a vehicle code violation.
So far, few Sonoma County residents have signed up for the coverage, which costs $251 a year.
“It’s very important that this program be extended,” said Doug Heller, executive director of Consumer Watchdog, a Los Angeles-based nonprofit that tracks insurance issues. “The last thing we want is for people to be uninsured.”
The program will expire at the end of 2010 unless it is extended by lawmakers.
About one in four California drivers lacks auto insurance, according to Steve Poizner, the state’s insurance commissioner. It’s against the law and puts other drivers at risk, he said. Uninsured motorists can have their licenses suspended or revoked.
The low-cost insurance program was launched statewide in 2007, and so far about 45,000 policies have been sold. Premiums vary by county, ranging from $161 to $368.
But only 142 policies have been sold in Sonoma County. where an estimated 28,000 motorists had no insurance in 2007, according to state figures.
That doesn’t mean the program hasn’t been successful, said Molly DeFrank, a spokeswoman for the Department of Insurance. Many uninsured motorists who checked out the program found they could afford better coverage, she said.
The state hasn’t done enough to promote the program and insurance brokers often don’t tell customers about it, Heller said.
“This is bare-bones coverage, but it’s far better than being uninsured,” he said.
The coverage includes $10,000 for bodily injury or death per person in an accident, $20,000 for bodily injury or death per accident, and $3,000 property damage for each accident.
To qualify, motorists can’t earn more than 250 percent of the federal poverty level — $27,075 for a single person, $36,425 for a couple or $55,125 for a family of four.
The value of the insured vehicle can’t be more than $20,000.
An applicant must be a “good driver,” with no more than one at-fault, property-damage-only accident, or one point for a moving violation in the past three years.
An applicant must be at least 19 years old with three years’ driving experience. In addition, a driver must have no at-fault accidents involving injury or death in the past three years and no felony or misdemeanor convictions for a vehicle code violation.
1 comments:
Very surprising post. I wasn't aware of this information and learning about it from this article. Thanks to you for posting about the uncertainty which people might have to face having low cost auto insurance plans.
small business insurance
Post a Comment