In his statement released yesterday, California Department of Insurance chief, Commissioner Steve Poizner affirmed that the state government is planning to extend its Low Cost Automobile Insurance program in other areas in California. The said expansion is being arranged to be implemented in the counties of Amador, Butte, Calaveras, El Dorado, Humboldt, Placer, San Benito, Shasta, Sutter, Tuolumne and Yuba. This is expected to take its effect after the new rates have been agreed upon later this October.

Los Angeles, CA -- (SBWIRE) -- 09/05/2007 -- Immediately after this announcement, the California Department of Insurance conducted separate community meetings in each of the eleven counties that included in the list to examine the issue and determine their need of this particular program. The need analysis and meetings resulted into the determination of Commissioner Poizner that such expansion should be applied in these counties.

Poizner added that it is indeed an illegal act to without an insurance plan. He also affirmed that a little below 50,000 motorists are uninsured in these counties due to the unaffordable premium rates offered to them. Hence, the lives of the road user at put in jeopardy. Such program expansion will greatly benefit Californians and make them abide by the law to ensure the protection of all the motorists from possible damages.

As prescribed under the recently enacted law, SB 1500, the authorities may suspend the automobile registrations of motorists who will be caught traveling without an insurance policy. This is intended to warn them of their potential legal liabilities and at least lessen the chances of economic damages resulting from road accidents that involve uninsured drivers.

Obedient drivers with low salaries or earnings are qualified to avail the low cost auto insurance program. They may purchase this for less than $400 or even below $300 yearly depending on the county they are residing. These lower rates allowed more than 33,000 motorists to avail of the program.

This government program is being managed by the California Automobile Risk Plan and policies under such program are distributed by California licensed insurers.

Unlike what other people think, the California Low Cost Auto Insurance Program is a self-sufficient plan. Appropriate rates adjusted in each county to sustain its operation and so that no amount of subsidies should be burdened by the taxpayers.

For further information regarding how to avail this program, you may visit the Department of Insurance web site at http://www.insurance.ca.gov or just dial 1-866-602-886.

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