San Diego, CA (WiredPRNews.com) A proposal to set up a low-income insurance program like the one currently in place in California gained approval from the Nevada State Assembly on Tuesday. The program would give good, low-income drivers greater access to policies, but those policies would contain coverage levels below the state required minimums.
Eligible participants would have the option of paying the whole year’s premium up front or of setting a low down payment auto insurance plan. Up-front costs in the program could be as small as 15 percent of the total annual cost of the policy.
The legislation that would establish the program is almost identical to that which was used to set up the California program, which has been in place for about a decade.
Drivers would be able to apply for coverage through a state-run program funded by a 50 cent fee tacked on to all personal car insurance policies sold in the state. Program administrators would then place eligible participants with a provider, and premiums would be set by the state insurance commissioner.
The pilot-program legislation outlines the eligibility requirements for the program. Eligible participants must have a household income that is at or less than two-and-a-half times the federal poverty level, have a car worth only $20,000 or less, have been continually licensed for the previous three years and have a relatively clean driving record.
The pilot program would initially be limited to the state’s most populous counties. Only drivers who keep their cars garaged in counties with a population of at least 400,000 would be eligible for the pilot program.
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