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SACRAMENTO ― Assemblymember Liz Ortega (D-San Leandro) announced the official passage of a new law that will lock in low auto insurance rates.
Over the weekend, Governor Gavin Newsom signed AB 917, which makes the California Low Cost Auto Insurance (CLCA) program permanent. CLCA has for more than two decades provided low-income California drivers with auto liability insurance at affordable rates. However, it has required reauthorization every five years, leaving drivers in limbo. This new law authored by Asm. Ortega makes the program permanent.
“Helping working families afford the basics has been a top priority for me this session,” said Asm. Ortega, “So many working parents must drive to work, and auto insurance can be a large and unpredictable cost. By making this program permanent, we are committing to support working families, while also increasing safety for all drivers on our roads.”
“Meeting California’s requirements for auto liability insurance can be challenging for many working families, who are already struggling to keep up with the rising cost of living,” said Asm. Ortega continued. “Many low-income families depend on this program to afford auto insurance.”
Of the 196,589 California drivers who have been provided auto insurance through CLCA, approximately 77% of applicants had been uninsured. A high proportion of uninsured motorists on the road can pose significant financial risks to all motorists on the road.
“Having valid auto insurance is essential for keeping everyone safe on California roads, and participating in CLCA can be the only way for many families to afford it,” said Ortega (D-San Leandro). “For low-income families, the cost of getting into a car accident without insurance can be devastating. Losing their vehicle can mean losing their only mode of transportation, preventing them from pursuing their education, or from keeping their jobs.”
To receive reduced rates through CLCA, motorists must have a valid California Driver’s License, meet income requirements, and have a good driving record. More information can be found at the California Low Cost Auto Insurance website.
Assemblymember Liz Ortega is a member of the Assembly Committees on Higher Education, Insurance, Labor and Employment, Public Safety and Rules. She represents the 20th Assembly District, encompassing all or a portion of the cities of Hayward, San Leandro, Union City, Dublin, Pleasanton and the unincorporated areas of Ashland, Cherryland, Fairview, San Lorenzo, and Castro Valley.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.