Low Cost Auto Insurance Gets Another Boost In California

As I have covered here few times California has been in a continuing process of making auto insurance more affordable for ever more and more Californians. Last time, in the spring 2007, the special program has been covering 22 counties including: Alameda, Contra Costa, Fresno, Imperial, Kern, Los Angeles, Merced, Monterey, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Joaquin, San Mateo, Santa Barbara, Santa Clara, Sonoma, Stanislaus, Tulare and Ventura.

Now plans are made ready to expand it to 32 California counties in total. The program called California Low Cost Automobile Insurance Program allows low income drivers to obtain a liability auto insurance coverage for under $400. The names of the California counties being added to this program will be: Napa, Placer, Solano, Yolo, Kings, Lake, Madera, Marin, Mendocino and Santa Cruz.

The minimum requirements of this auto insurance savings program include age of over 19 years old, a 'good driving record' and income of under $25,525 for a single driver and $51,625 for a household made of four people.

To find out more about this program you can call 866-602-8861

New Lower Car Insurance In The California Counties Of Merced and Tulare

Starting today there will be a new lower car insurance available for under $400 in the California counties of Tulare and Merced.

The basic conditions applying to that have to do with the driver's meeting the minimum income requirements and having a clean driving record. This program is viewed as helping those who drive without insurance to get one; California has one of the highest rates of drivers driving without auto insurance in the United States.

For a good low cost auto insurance company you might want to check the 21St Century Insurance available in Arizona, California, Colorado, Florida, Georgia, Illinois, Indiana, Minnesota, Missouri, Nevada, New Jersey, Ohio, Oregon, Pennsylvania, Texas, Washington and Wisconsin US states. Otherwise a noteworthy auto insurance group is 2Insure4Less which operates in all 50 United States states and besides auto insurance also offers insurances for life, annuity, long term care, health, homeowner, auto proffered, auto standard, auto high, renter, disability, cancer, burial, business and benefits. They give you a quick and comprehensive multi quote from Farmers, Kemper, The Hartford, Mercury, Liberty Mutual and Nationwide.

State Farm Lowers Auto Insurance Rates

According to State Farm Insurance spokesperson the company is about to lower its auto insurace rates by 10.1 percent. Also their home insurance is to be lowered by 20 percent in total.

State Farm is is the larges vehicles and homes insurer in California therefore the amounts of savings passed to their customers will be substantial - totalling $489 million and including $259 million paid to vehicle owners and $230 millions to home owners.

According to Insurance comissioner John Garamendi these rate cuts are to start taking effect in April.

California New Low Cost Auto Insurance Program Expanded

California has just passed Senate Bill 20, sponsored by Insurance Commissioner Garamendi. It is to start on April 1 (not a fools joke).

It is a Low Cost Automobile Insurance program allowing low income drivers to opt for the liability auto insurance for under $400 a year. With the new legislation in place it will be expanded to the counties of Alameda, Orange, Riverside, Sand Bernardino and Sand Diego.

Plans are in the workings to also expand the program to the counties of: Contra Costa, Imperial, Kern, Sacramento, Santa Clara, San Jaquin, San Mateo and Stanislaus.

In the words of Senator Martha Escutia "My goal in creating the Low Cost Auto Insurance Program six years ago was to provide an affordable alternative for consumers who are required to have, but simply cannot afford a conventional policy. The expansion of the program to additional California counties is a blessing for many working families who are searching for affordable auto insurance."

This auto insurance program has been created in 1999 and originally applying to the Los Angeles and San Francisco Counties. With the new legislation in place it will encompass 16 counties.

The terms for it are that to qualify for this program the family income must be lower then 2.5 times the Federal poverty level of $24,000 for a single individual, $33,000 for two people and $50,000 for a family of four and the insured vehicle’s total value needs to be under $20,000. There are also some minimum driving record requirements for it. For more information please call 866-602-8861

Here you also read what I wrote about this developing program in January.

New California auto insurance policy proposal

On February 24th there is to be a formal hearing for a new California auto insurance policy that might result in the auto insurance rates rising in some counties as much as 35 percent.

The idea relates to rising rates in urban areas as well as more in relation to personal driving record.

California pilots new auto insurance program

With the turn of the year a new law come into effect in California enabling low-income East Bay residents to buy driver's auto insurance for less then $400 which makes it a pioneering State in that area. The rule is to come into effect April 1 2006 - no April fool's joke :-)

Until now this leading auto insurance program has been limited to San Francisco and Los Angeles county residents. But in April it will expand to include Alarmeda, Fresno, Orange, Riverside, San Beranardino and San Diego counties. If all goes well, it might expand to embrace the rest of California soon after.

To qualify for this insurance discount, a driver needs to be over 19 years old and have income within 250 percent of the statutory poverty line - that being about $23,000 for singles and $47,000 for families of four. Other qualifying requirements include holding licence for at least three consecutive years, no more then one at-fault accident involving bodily injury or death in the past three years or more than one moving violation in three years, or more than
one property-damage wreck that they caused driving within the same time span.

The program, is administered by the California Automobile Assigned Risk Plan and has provided car insurance for low-income San Franciscans at a rate of $314 per year. In Los Angeles, the cost has been $347.

This auto insurance expansion bill has been passed by the Senate on a 21-13 vote and went through the Assembly with a 62-17 margin.