FACT SHEET

LOW-COST AUTOMOBILE INSURANCE PILOT PROGRAM
(SAN FRANCISCO COUNTY)


What is the Low-Cost Automobile Insurance Pilot Program?
Sponsored by the State of California, this program offers basic coverage for low-income residents with good driving records in San Francisco and Los Angeles counties. The program is the result of landmark legislation signed by Governor Davis in 1999. It provides a low-cost auto insurance option for low-income good drivers who cannot afford the high cost of automobile insurance. Recent figures show that California had 5.3 million uninsured vehicles, and 2.2 to 3 million of these were in regular use.

How much does the Low-Cost Auto Insurance Policy cost?
 In San Francisco County, the initial annual rate is $410 dollars. There is a 25 percent surcharge if the person named on the insurance policy is an unmarried male between the ages of 19 and 24, or if an unmarried male between the ages of 19 and 24 lives in the household of the named insured and will be a driver of the automobile covered by the policy.

What are the limitations for eligibility?
There are several:

  • Age and Driving Experience: the low-cost policy is only available to individuals 19 years of age or older who have been continuously licensed to drive an automobile for the previous three years.

  • Income: the low-cost policy is open to good drivers where the household income is 150% or less of the federal poverty line. This is an annual family income of $25,572 for a family of four.

  • Good Drivers Only: policy holders cannot have more than one of either, but not both, of the following within the previous three years:

    1. A property damage accident in which the driver was principally at fault.
    2. A point for a moving violation

    Additional restrictions:

    • Within the previous three years, no at-fault accidents involving bodily injury or death
    • No felony or misdemeanor convictions for a violation of the Vehicle Code on his or her motor vehicle record
    • No college students claimed as a dependent of another person for federal or state income tax purposes

How much coverage is provided by a Low-Cost Auto Insurance Policy?
The low-cost policy would provide coverage of $10,000 for liability for bodily injury or death to one person, subject to a cumulative limit of $20,000 for all persons, and $3,000 for liability for damage to property. The policy would satisfy the financial responsibility laws.

Can I pay my premium in installments?
There is only one premium financing arrangement permitted. Instead of paying the full premium at the beginning of the policy, an insured can opt to pay $100 dollars upon issuance of the low-cost policy, followed thereafter by six other payments.

How can I buy one of these policies?
Contact the LOW COST AUTO INSURANCE HOTLINE toll free at 1-800- 622-0954 for a list of insurance agents in your neighborhood who are eligible to sell the low cost automobile insurance policies. Then, contact your local agent to sign up.






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