Schwarzenegger Vetoes Low Income Auto Insurance

California Governor Arnold Schwarzenegger opposed yesterday the Low Cost Auto Insurance program for low-income families, using his veto right, against the full support of the State Assembly. The bill would have extended the current program, scheduled to end by December 31, until 2015.

"This veto is out of touch with the real economy that many Californians are facing," Doug Heller, Consumer Watchdog executive director said in a release. "Why would a program that has allowed nearly 50,000 Californians to buy auto insurance instead of driving uninsured and doesn't cost the taxpayers a dime be on the Governor's chopping block? It's not just low-income families who benefit from this program but all the people who have had their claims paid because another driver was carrying this policy."

The current program, in effect ever since 2000, allows driver who have low incomes to insure their vehicles for some $350 a year. It was set in place in an attempt to limit the number of uninsured drivers in the state. According to Consumer Watchdog, the number of drivers who got an insurance through his program is about 50,000, with nearly all of them having no prior insurance.

On the other hand, the Governor said he decided to veto the bill due to the fact that "the effectiveness of the program is questionable given the number of policies in effect and low participation rate amongst the insured." According to Los Angeles Times, he asked Assemblyman Dave Jones, one of the authors of the bill, to send a revised version to be taken into account next year.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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