California's Lifeline Auto Insurance Program
An Effective Practice
Description
Since 1999, California has operated a Lifeline Auto Insurance Program that seeks to provide low-income drivers with access to affordable automobile insurance. The program is the result of a California law (SB 171) sponsored by the Foundation for Taxpayer and Consumer Rights. Under SB 171, all insurance companies selling auto insurance in the state are required to sell a certain percentage of Lifeline policies. The Lifeline policies cost approximately $400 per year and are available to families whose household income is less than 250 percent of the federal poverty level--$24,500 for a single person, $33,000 for two people, and $50,000 for a family of four.
Goal / Mission
The goal of this program is to provide affordable auto insurance to low-income drivers in California.
Results / Accomplishments
The program started on a pilot basis in Los Angeles and San Francisco Counties. It has subsequently been expanded to a total of 16 counties in the state. Since the program's inception, more than 25,000 auto insurance policies have been issued to qualifying, low-income families.
About this Promising Practice
Organization(s)
State of California
Primary Contact
Lifeline Auto Insurance
(800) 622-0954
(800) 622-0954
Topics
Economy / Poverty
Community / Transportation
Community / Governance
Community / Transportation
Community / Governance
Organization(s)
State of California
Source
Finance Project
Date of publication
Dec 2006
Date of implementation
1999
Location
California
Target Audience
Families