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(EMAILWIRE.COM, August 16, 2010 ) Sacramento, CA - The Golden State Legislature on Aug. 11 approved a bill that would extend the life of a car insurance program that has helped thousands of low-income Californians secure coverage. Whether Gov. Arnold Schwarzenegger ultimately signs the bill into law, though, is up in the air, as he vetoed a similar measure in 2009. In his veto, the governor cited concerns regarding the effectiveness of the program and the need to examine its workings in order to pinpoint any room for operational improvement. The bill would change the ending date of the program from from Jan.1, 2011, to Jan. 1, 2016.
The California Low-Cost Automobile Insurance Program assists residents who are unable to secure cheap car insurance in California that can fit into their budgets. Participation in the program is extended to residents who meet the following criteria: household income does not exceed 250 percent of the federal poverty level, driving-record status is considered “good,” the insured is above the age of 19 and has been licensed for the past three years, and the insured car is worth less than $20,000.
The authors of the bill report that some operational areas, per the governorÂ’s suggestion, have been improved since 2009. Since that year, administrators of the program have stepped up targeted advertising and have tweaked the system to make more transactions possible through electronic means. In 2009, the program saw an 18.9-percent up-tick in participation, according to the State Department of Insurance (DOI).
Of the 110 members of the state legislature who voted on the measure, five opposed it. Whether the program becomes extended is now up to the governor.
The program was first implemented in 1999 as a pilot program in Los Angeles and San Francisco and has since expanded to a point where participation is open to all residents of the Golden State. According to the DOI, 50,000 policies have been written through the program, with 70 percent of the policies issued through the program in 2008 going applicants who previously had no insurance coverage. The cost of annual liability policies purchased through the program last year ranged between $161 and $368.
Consumers wishing to learn more about this and other Calif. auto insurance matters can go to http://www.onlineautoinsurance.com/california/, where visitors will also find a fast and free mechanism for generating personalized insurance quote comparisons.
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