CONSUMER ADVOCATES BELIEVE THAT THE NEW EXTENSION LEGISLATION PROPOSAL FOR LOWER COST AUTO INSURANCE SHOULD BE SIGNED BY GOVERNOR SCHWARZENEGGER
Those in favor of protecting consumer’s rights are putting pressure on Governor Schwarzenegger to sign the AB 1597 bill which will allow low income drivers to benefit from cheaper automobile insurance. This Low Cost Auto Insurance program, which will not increase taxpayer’s bills, was already approved in California in August 2010 yet it needs the Governor’s signature to give it longevity.
Several prominent members of non-profit organizations such as Consumer Watchdog have spoken out in favor the bill. Their Executive Director, Douglas Heller, said that it should be an easy choice for the governor because of the assistance it will give to low income motorists. He was also adamant that the fact that it wouldn’t prove to be an extra financial burden on taxpayers and the likelihood that it would keep the roads safe should influence the Governor’s decision.
If signed, the AB 1597 bill will add a minimum of five years to the program. The Low Cost Auto Insurance Program only set back motorists around $400 a year and offers basic coverage but only to drivers with near spotless records. The reason why taxpayers don’t have to shell out extra for the program is because any claims that will be paid come from the premiums paid by the lower income motorists. The Consumer Watchdog group paid for a low cost insurance program in 1999 but it didn’t last the distance. This bill is overseen and funded by the Department of Insurance with an Assemblyman by the name of Dave Jones accredited with the bill on this occasion.
Voters said no to Proposition 17 in June as it was the polar opposite to AB 1597
Mercury Insurance funded Proposition 17 which was designed to seriously punish Californian motorists who had a coverage lapse in the previous five years. These people would have been forced to pay a large sum in order to be allowed to purchase insurance again. This is the antithesis of the Low Cost Auto Insurance program which was designed with the motorist’s finances in mind.
Douglas Heller explained the rejection of Proposition 17 by noting that voters were not interested in halting their fellow motorists in terms of getting new insurance. He also feels that the low cost program is so popular because it lowers the number of uninsured motorists on Californian highways and only drivers with good records can
benefit.
A quick review of the Low Cost Auto Insurance program
If you hope to be eligible for the program, here are some of the principle criteria. Your driver’s license needs to be almost spotless with no more than one point on it. You have to be over 19 years old and your income needs to be below the $27,000 barrier annual. If you are in a family of four, then this income should be less than $55,000. Drivers will be covered for $20,000 maximum in the event of an accident, $3,000 for property damage and $10,000 if you sustain physical injury. A vehicle with a value of more than $20,000 also excludes you from the program.
Over 50,000 people can thank this program for helping them get back on the road with 12,000 of these driving today. The program has also lowered the rate of accidents involving uninsured drivers and has paid over $8 million in the last three years. This has been as a result of approximately 3,000 accidents involving at least one member of the program.
Low income drivers need to become more aware of this plan because there are still far too many uninsured drivers on Californian roads. Visit Insurewish.com for tips on car insurance as well as a comparison of insurance company’s quotations.
