Tuesday, 09 August 2022

Gov. Newsom signs bill extending and expanding low cost auto insurance

SACRAMENTO – Gov. Gavin Newsom signed legislation on Friday that continues a statewide affordable auto insurance program for low-income individuals as well as opens it up to more students.

Sen. Susan Rubio (D-Baldwin Park) and California Insurance Commissioner Ricardo Lara partnered on SB 570, which changes the sunset deadline for the California Low Cost Auto Insurance Program to Jan. 1, 2025.

In addition, the bill aligns statute with current practice to allow eligible emancipated 16 and 17 year olds to access the program.

“The Low Cost Auto Insurance program has helped low-income consumers get and maintain insurance coverage for 20 years,” Sen. Rubio said. “I am proud to have worked with Commissioner Lara to extend the program so that it remains an option for our most vulnerable communities and expands access to eligible young people and students.”

“Over the past 20 years, thousands of Californians have signed up for low-cost automobile insurance to protect themselves and their families,” said Commissioner Lara. “Thank you to Senator Rubio for expanding this important program to include more students and young people and to Governor Newsom for extending it for another five years.”

The California Low Cost Automobile Insurance Program was established in 1999 and is administered by the California Department of Insurance to provide income-eligible consumers with liability insurance protection at affordable rates.

Nearly 20,000 drivers are currently enrolled in the program, and the program has served over 150,000 consumers since its inception. Many vulnerable consumers depend on it for coverage so that they may go to work or drive children to school. Without the program, many of these consumers will be unable to obtain insurance and lawfully drive their vehicles.

For more information about the California Low Cost Auto Program, visit https://www.mylowcostauto.com.

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