California law requires that all drivers be insured. For many however, the cost of insurance is too high to maintain and many low-income drivers simply go without it to the detriment of everyone. Assemblyman Dave Jones’ bill, SB 171, was set to expire but on September 28, 2010, Schwarzenegger signed a five year extension. SB 171 is the first of its kind in the nation and offers low cost basic insurance to qualifying, low-income drivers with good records.
Under SB 171, all insurers in the state of California are required to sell a certain number of low-cost policies to qualifying drivers. Insurance companies and agents are required by law to inform prospective policyholders about the program. With poverty levels rising this program is more important than ever and insurance companies and agents must be held accountable to inform the public.
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