Elizabeth Wilson — Staff writer
LAKE COUNTY — In Lake County, about one in 10 drivers doesn”t have car insurance, a problem the state Department of Insurance is trying to remedy through a liability coverage program that offers low-cost insurance ? at $270 per year ? to low-income drivers. The policies are being written by insurers in 22 counties so far, with goals of eventually covering the entire state. The department is tentatively set to expand the program to Lake County by the end of the summer.
A meeting to determine need in the county was held June 27 at the California Human Development Corporation in Lakeport. Eight local non-profit agency representatives were present, and their statements of support are popping up in the department”s e-mail faster than you can brake to avoid crashing into an uninsured driver.
Department spokesperson Jason Kimbrough said there has been little publicity for the program, which is why sales have been sluggish in nearby counties that already have the policies in place, including Sonoma County, where the amount of people signing up per month can sometimes be counted on your fingers and toes. Statewide, there are still 3 million uninsured drivers, and so far 32,836 of the low-cost policies have been sold largely to a previously uninsured population, according to Kimbrough.
“We need community participation to make this happen, and reduce the numbers of uninsured drivers to make the roads safer,” said Kimbrough, noting there will be a meeting in Lake County to explain the program to the public, so long as Insurance Commissioner Steve Poizner issues a final determination of need for the county in the next 30 days. “There are people in Lake County who are struggling over whether to choose medical insurance or liability insurance, so this policy can make choosing auto insurance an option for those on a fixed income,” said Kimbrough, adding that those who drive without insurance usually can”t pay for damages they cause in accidents, and also face having their licenses taken away, heavy fines, and impoundment of their vehicles, under the state”s financial responsibility law.
Nanette Dutcher of Lakeport”s State Farm Insurance said that information about the policy is easily misconstrued and people need to know that the low-cost auto insurance is liability coverage only. “The basic package the Insurance Department is proposing offers no coverage for their own car, and there are certain parameters based on income and driving record. We”re kinda waiting to see when Lake County gets approved and what it will mean for us,” said Dutcher.
To be eligible, drivers must also have been licensed at least three years and drive a car worth no more than $20,000, be at least 19 years old and make no more than $25,525 per year for a single person, $34,225 for a couple or $51,625 for a family of four. A 25 percent surcharge is added for unmarried male motorists under the age of 25. The $270 basic liability coverage is $10,000 per person for injury or death, $20,000 for bodily injury per accident, and $3,000 in property damage per accident, and can be upgraded to include optional medical coverage for $26 per year and uninsured motorist coverage for $31 annually.
Sandra Zapata with the California Human Development Corporation in Lakeport said she got a good impression of the program at the Wednesday meeting, which her non-profit hosted. “It is very cheap and even though it”s only liability insurance at least it will mean that people can drive, because under the new law if you cancel your insurance they call the DMV and they take away your license. So this will mean that low-income people will be able to drive legally,” said Zapata.
Georgina Lehne of the Lake Community Action Agency, who plans to e-mail her statement of support for the program, said it is “a tremendous benefit for people who are low income,” but that for some, the $270 to $400 minimal coverage policies are too much to pay. “There are people who don”t even have that amount as a monthly income, so it”s a benefit for some but not for all,” said Lehne.
Contact Elizabeth Wilson at ewilson@record-bee.com.
