Bill would extend coverage
Low income motorists with good driving record Riverside and San Bernardino Counties able to buy auto insurance cheap spring, when Dir Schwarzenegger sign a law on his desk.
The measure, which the legislature adopted last week, eight countries to broaden the circles a programme of State has proposed that the Low-Cost-auto insurance Los Angeles and San Francisco counties in the past five years.
Supporters say the bill by state Sen. Martha Escutia, D-Whittier, reducing the number of uninsured vehicles and more than 1997 people for a law requires proof of insurance.
“For most low-income workers, no road is not an option,” said Doug Heller of the Foundation for Taxpayer and Consumer Rights, a group of Santa Monica in charge of the bill. “Tant we ask that people buy car insurance, we have a means for people. ”
Prices paid by participants in the program, it is expected that all claims. After examining state, other customers of insurance premiums can not subsidize low-cost strategies.
But the insurance industry, who tried to block in 1999, the legislation establishing these two countries in the pilot circle, remains sceptical about the Low-Cost programme.
Some industry officials question their effectiveness. The two circuits of the test project 17000 politics - a tiny fraction of the number of vehicles registered in Los Angeles and San Francisco counties.
There are also concerns about the extent of insurance, provided by the program.
Currently, state law requires that drivers of at least $ 15000 to cover personal injury or death of a person, $ 30000 on the cover injuries or death of more than one person, and 5000 $ Damage.
For participants in the Low-Cost programme, but the three requirements of coverage would be $ 10000 $ 20000 $ 3000 “I think it is a question of law and order that the case an adequate level of coverage for consumers, “said Saturday Sorich, president of the Association of California Insurance Companies.
“On the one hand, it has the potential to reduce the number of uninsured drivers, but on the other hand, the increase in the number of drivers under-insured,” he said.
Schwarzenegger has until Oct. 9 to act on the bills.
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