News: 2009 Press Release

In light of skyrocketing unemployment rates and harsh economic conditions, Insurance Commissioner Poizner today offered struggling Sacramento residents an affordable automobile insurance option through the California Low Cost Automobile Insurance program. 

"In Sacramento, unemployment is more than eleven percent, and families are really struggling to make ends meet," said Commissioner Poizner.  "As families evaluate ways to cut expenses, some may even consider dropping their auto insurance - but driving without insurance is illegal and puts everyone on the road at risk.  I urge Sacramento drivers to shop around for the best rate and product to fit their needs.  The California Low Cost Auto Insurance Program is just one affordable option for those who have been impacted by the slowing economy."

Motorists driving without insurance can have their vehicle registrations suspended, cancelled or revoked by the Department of Motor Vehicles under SB 1500, which became effective Jan. 1, 2006, as part of legislation designed to reduce the risk of economic losses sustained as the result of collisions involving uninsured motorists.

The low cost auto insurance program provides eligible good drivers with auto liability coverage, currently for under $400 a year and as little as under $300 a year in many counties.  In Sacramento County, an LCA policy costs $361 per year.  Since its inception, approximately 45,000 policies have been issued statewide.  In Sacramento County, 814 policies have been issued since the LCA program was made available there in 2006.  Program policies are issued by California licensed insurers and the program is administered by the California Automobile Assigned Risk Plan. 

The California Low Cost Automobile Insurance Program is 100 percent unsubsidized by taxpayers.  The program is self-sustaining.  Rates are set in each county so that premiums are sufficient to cover losses and expenses in each county.

There are a number of eligibility requirements for the program, including:

• An applicant must be a "good driver" - 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 of age with 3 or more years of continuous driving experience.
• No at-fault accident involving bodily injury or death in the past three years and no felony or misdemeanor conviction for a violation of the Vehicle Code.
• Family income cannot exceed 250 percent of the federal poverty level ($27,075 for a single person, $36,425 for two persons and $55,125 for a family of four).
• The value of an insured vehicle must not exceed $20,000. 

For more information about the program, call 1-866-60-AUTO-1 (1-866-602-8861).

The California Low Cost Automobile Insurance Program was established in 1999 as a pilot program in Los Angeles and San Francisco.  SB 20, passed in 2005, authorized the Commissioner to launch the program throughout the state upon his determination of need in each county.  Beginning in April 2006, the department began expanding the program statewide.  Commissioner Poizner made the LCA program available to every county in the state in December 2007.