Calif. Low Cost Auto Program Expanded to 20 Counties

October 3, 2007

California Insurance Commissioner Steve Poizner has expanded the California Low Cost Automobile Insurance program (CLCA) in 20 additional California counties: Amador, Butte, Calaveras, El Dorado, Humboldt, Kings, Lake, Madera, Marin, Mendocino, Napa, Placer, San Benito, Santa Cruz, Shasta, Solano, Sutter, Tuolumne, Yolo and Yuba Counties. As of October 1, the CLCA program is accessible and available to eligible residents in these 20 counties.

In 42 counties throughout California, the CLCA program provides eligible low-income, good drivers with state-required liability coverage for under $400 a year. Since its inception, 34,161 policies have been issued. 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 program is not subsidized 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.

The California Low Cost Automobile Insurance Program initially began in 1999 as a pilot program in Los Angeles and San Francisco. Senate Bill 20 (Escutia) authorized the Commissioner to launch the program throughout the state upon his determination of need in each county, based on statistical data analysis and local community input.

Beginning in April 2006, the department began expanding the program statewide.

Source: CDI

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