Calif. Lawmakers Approve Low Income Car Insurance Extension

Governer SchwarzeneggerA bill that would extend the California Low Cost Automobile Insurance Program for another five years is on its way to Gov. Arnold Schwarzenegger’s desk after state lawmakers approved the legislation earlier this week.

All motorists in the state are required to have car insurance, but expenses, coupled with financial constraints, have resulted in some people’s getting behind the wheel without coverage.

The CLCA provides low-income motorists with California car insurance for less than $400 a year. The average California motorist paid $800 for coverage in 2007, according to the National Association of Insurance Commissioners.

Advocate group Consumer Watchdog is encouraging Schwarzenegger to sign the bill into law, stating that the CLCA benefits everyone without burdening taxpayers.

“The low cost auto insurance program is a win-win solution offering real help to low-income Californians without costing the public a dime,” said Consumer Watchdog Executive Director Douglas Heller. “By signing this bill, Gov. Schwarzenegger will allow those who are struggling in this brutal economy to afford car insurance and keep the roads safer.”

In order to qualify for auto insurance through CLCA, a driver must have a relatively clean driving record, meet income requirements, have a car valued under $20,000, be 19 or older and have been continually licensed for the past three years.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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