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Aug 30, 2002

CONTACT: Doug Heller - 310-392-0522 x309

Low-Cost Auto Insurance Program Sent to Governor Davis

Santa Monica--The California Senate passed legislation (SB 1427 -- Escutia) this evening that will reduce the price of coverage under California's low-cost auto insurance pilot program to $347 in Los Angeles and $314 in San Francisco. The bill will also expand eligibility requirements for the program to ensure that more low-income drivers can afford insurance. This program, the first of its kind in the U.S., was created by legislation in 1999, and will remain as a pilot program until 2007.

"In California we require every driver to carry auto insurance, so it is essential that a policy is affordable to all drivers," said Doug Heller, senior consumer advocate with The Foundation for Taxpayer and Consumer Rights (FTCR). "With this bill, more Californians will be able to afford insurance, and all drivers will be better protected."


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