Low Cost Auto Insurance Goes Statewide
California Insurance Commissioner Steve Poizner has issued an order adding the final 16 counties to the California Low Cost Auto Insurance Program, according to a Central Valley Business Times article published on October 29th. The program, which will make affordable California auto insurance available to the public, is expected to go into effect in the new counties by the end of December.
“Driving without insurance is illegal, and nearly 20,000 motorists in these counties are uninsured,” Poizner said. “Many drivers simply cannot afford insurance, but uninsured drivers put all travelers at risk. The expansion of this program to these 16 counties means that eligible motorists throughout the state will now have an affordable insurance option.”
The low cost auto insurance program has issued over 35,000 policies since its inception. It is designed to provide low-income good drivers with California auto liability coverage, currently for under $400 a year and as little as under $300 a year in many counties. The policies are issued by California licensed insurers and the self-sustaining program is administered by the California Automobile Assigned Risk Plan.
To be eligible for the program, an applicant must be a “good driver” – no more then one at-fault California auto accident or one point for a moving violation in the past three years; and 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 state’s vehicle laws. In addition, family income cannot exceed 250 percent of the federal poverty level ($25,525 for a single person, $34,225 for two persons and $51,625 for a family of four). The value of the insured vehicle must not exceed $20,000.
It is against the law in California to operate a motor vehicle without insurance. However, many Northern California auto accidents occur with uninsured or underinsured motorists behind the wheel. If the driver who hit you has no insurance or is underinsured, you may be able to pursue a claim with your own insurance company. Although the insurance company may have an obligation to pay benefits, the process is often difficult, and claims are frequently underpaid, delayed, or wrongfully denied. Our experienced Northern California Auto Insurance Lawyers have the know-how to fight for your rights and obtain the best result possible for your case.
Do not count on the insurance company to look out for your best interests. It's rare that an accident victim will "come out ahead" in an injury settlement without consulting a lawyer.
If we handle your case, there will be no advance fees or other advance payments required. If you recover nothing, you owe us nothing. Contact us today for a free consultation.
