Low-cost car insurance bill to be considered in California Assembly Thursday

But a bill to expand the program through 2016 will be considered Thursday on the Assembly floor in Sacramento.

State insurance officials estimate 18 percent of drivers will let their car insurance lapse in this tough economy. The state's low-cost automobile insurance program could help some motorists stay legal.

Annual liability premiums run as low as $262 in Riverside County and $274 in San Bernardino County through the program, said Jason Kimbrough, spokesman for the California Department of Insurance.

Use of the low-cost auto insurance program was up 55 percent in San Bernardino and 39 percent in Riverside County for the 12-month period ending in April, Kimbrough said.

Overall, the program saw an 18.9 percent statewide increase last year.
Rates are set and adjusted in each county so annual premiums adequately cover losses and expenses.

All drivers are required by state law to have minimum levels of liability insurance. Penalties range from a suspended license to an impounded car and fines.

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