Safe, low-income drivers may get an auto insurance boost

Joe Goldeen
Record Staff Writer
Published Tuesday, Jan 24, 2006

STOCKTON - San Joaquin was added to a list Monday of eight counties targeted for expansion of the California Low Cost Automobile Insurance Program, which provides eligible low-income good drivers with state-required liability coverage for less than $400 a year.

A town-hall meeting conducted by state Insurance Commissioner John Garamendi will be held next Tuesday to gauge the community's interest in the program.

With enough support, the low-cost insurance program could be rolled out in San Joaquin County as soon as June 1, a department spokeswoman said.

To be eligible, a driver must have no more than one at-fault accident or one point for a moving violation in the past three years and have gross annual income no higher than 250 percent of the federal poverty level. Examples include up to $23,275 for a single motorist or $47,125 for a four-person household. The vehicle being insured may not be valued at more than $20,000.

The state's low-cost auto insurance plan was introduced in 1999 as a pilot program in San Francisco and Los Angeles counties, where annual premiums are $314 and $347 respectively. While it's possible to purchase private insurance for about $400 annually in San Joaquin County, the qualifications - such as the ZIP code in which you live - make it far more difficult to obtain low-cost insurance than under the state's program.

Garamendi was given the authority under recent legislation - Senate Bill 20 - to launch the program throughout the state upon his determination of need in each county.

"Every day, more than 3million motorists travel California's roads without auto insurance. This is clearly a recipe for disaster. This program is an affordable option for qualified low-income drivers. Why risk driving without insurance when you can afford it?" Garamendi said.

SB20 specifically expanded the program to Alameda, Fresno, Orange, Riverside, San Bernardino and San Diego counties effective April 1. On Monday, Garamendi targeted Contra Costa, Imperial, Kern, Sacramento, San Mateo, Santa Clara, San Joaquin and Stanislaus counties for possible expansion of the program, for a total of 16 counties statewide.

"Based on a review by my department, I have initially determined the necessity to expand this program to these eight counties this year. I plan to hold town-hall meetings in each of these communities to directly gauge their insurance needs," Garamendi said.

The eight additional counties are being considered based on the number of uninsured motorists and low-income residents. The community meetings will help Garamendi determine where the need is greatest, the spokeswoman said.

Once a county is selected, it will go through a rate-setting process to determine the monthly premium.

The California Low Cost Automobile Insurance Program was created to provide low-income good drivers with access to affordable automobile liability insurance. The program's policies are issued by private insurance companies licensed by the state, and the program is administered by the California Automobile Assigned Risk Plan; it is not subsidized or otherwise supported by government funding.