Posted on 15 Mar 2010
California Insurance Commissioner Steve Poizner announced on Friday that in February, the California Low Cost Auto Insurance Program (CLCA) saw the highest number of enrollees in any one month during the past three years. Poizner urged all Californians affected by the recession to continue considering all other insurance options before dropping auto insurance.
"In the midst of economic downturn, people cut corners everywhere they possibly can, and some even make the ill-advised decision to get rid of auto insurance," said Commissioner Poizner. "During one of the toughest economic times California has been through, I am encouraged to see that drivers are taking advantage of this program that can save them money and keep them from breaking the law. I urge anyone who is thinking about dropping their auto insurance to think again."
The CLCA program received 788 applications in February 2010, more than any other month in three years. The program also saw a 30 percent increase in use year to date in 2010, compared to the same time in 2009. There was an 18.9 percent jump in use in 2009 compared with the year before. An aggressive outreach program and the tough economic conditions are credited with the increase in the program that was established in 1999 and has been available in every California county since 2007.
Approximately 7,500 applications to the CLCA were approved in 2009 compared to 6,306 in 2008. The most active month was April 2009 with 727 applications filed. The monthly average for the year was 624 applications.
The purpose of the CLCA is to provide low-cost automobile liability insurance to good drivers who demonstrate financial need. Rates are set and adjusted annually in each county so that the premiums collected are sufficient to cover losses and expenses in each county.