Insurance Code § 11629.75 – Low-Cost Automobile Insurance Program Coverage Limits
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Insurance Code § 11629.75 – Low-Cost Automobile Insurance Program Coverage Limits
California Law
Insurance Code – INS
DIVISION 2. CLASSES OF INSURANCE [1880 – 12880.8]
( Division 2 enacted by Stats. 1935, Ch. 145. )
PART 3. LIABILITY, WORKERS’ COMPENSATION, AND COMMON CARRIER LIABILITY INSURANCE [11550 – 11895]
( Heading of Part 3 amended by Stats. 1979, Ch. 373. )
CHAPTER 1. General Regulations [11550 – 11629.88]
( Chapter 1 enacted by Stats. 1935, Ch. 145. )
ARTICLE 5.5. California Low-Cost Automobile Insurance Program [11629.7 – 11629.88]
( Heading of Article 5.5 amended by Stats. 2005, Ch. 435, Sec. 1. )
11629.75.
(a) A certified producer shall provide to an applicant for a low-cost automobile insurance policy under this article a notice relating to coverage under the policy. The notice shall be provided in a separate document at the time of application and include the following statement in 14-point boldface type:
“Notice
This policy provides liability coverage for injuries or death caused to other persons in the total amount of ten thousand dollars ($10,000) per person in any one accident, and up to a total amount of twenty thousand dollars ($20,000) for all persons in any one accident. The policy also provides up to three thousand dollars ($3,000) in liability coverage for property damage in any one accident.
These limits are very low compared to coverage outside of the low-cost automobile program.
If you are at fault for an accident where the damage exceeds the coverage provided by this policy, you can be held personally responsible for the losses.
If you want higher coverage limits, you must purchase a different policy.
This policy does not cover damage to your own vehicle caused by you or anyone else. The plan offers uninsured motorist coverage as an option. However, comprehensive coverage and collision coverage are only available for purchase outside of the program.
This policy does not cover your bodily injury or your death. You do have the option to purchase uninsured motorist bodily injury coverage in the total amount of ten thousand dollars ($10,000) per person in any one accident and up to a total amount of twenty thousand dollars ($20,000) for all persons in any one accident. You also have the option to purchase medical payments coverage in the amount of one thousand dollars ($1,000) per person in any one accident.
This policy does not cover any other driver in your household who meets any of the following criteria:
(1) Is under 16 years of age.
(2) Has less than three years of continuously licensed driving experience (unless the policy includes a surcharge for this driver).
(3) Has more than one at-fault property damage only accident in which the driver was principally at fault in the last three years.
(4) Has more than one point for a moving violation in the last three years.
(5) Has both one at-fault property damage only accident in which the driver was principally at fault and one point for a moving violation in the last three years.
(6) Has had an at-fault accident in the previous 3 years involving bodily injury or death.
(7) Has a felony or misdemeanor conviction from a violation of the Vehicle Code on their motor vehicle record.”
(b) When the certified producer establishes delivery of the disclosure form specified in subdivision (a) by obtaining the signature of the applicant or insured, there shall be a conclusive presumption that the certified producer has complied with the disclosure requirements of this section.
(Repealed and added by Stats. 2019, Ch. 274, Sec. 5. (SB 570) Effective January 1, 2020.)
California Law Summary
This statute mandates that certified insurance producers provide applicants for California’s Low-Cost Automobile Insurance Program with a clear, written disclosure outlining the policy’s coverage limitations and exclusions. The notice must be presented in a separate document at the time of application and include specific statements in 14-point boldface type.
Key Provisions:
Coverage Limits: The policy offers liability coverage of $10,000 per person and $20,000 per accident for bodily injury or death, and $3,000 for property damage per accident.
Exclusions: The policy does not cover damage to the insured’s own vehicle, nor does it provide comprehensive or collision coverage.
Optional Coverages: Uninsured motorist bodily injury coverage and medical payments coverage are available as optional add-ons.
Household Driver Restrictions: The policy excludes coverage for household members who meet certain criteria, such as being under 16 years of age, having less than three years of continuous driving experience, or having specific driving violations or convictions.
Personal Responsibility: Applicants are warned that if they are at fault in an accident causing damages exceeding the policy limits, they may be held personally responsible for the excess amounts.
Purpose
To ensure that applicants are fully informed about the limitations and exclusions of the low-cost auto insurance policy, enabling them to make educated decisions regarding their insurance coverage needs.
Application
Understanding the coverage limits and exclusions of such policies is crucial in personal injury cases, as it affects the potential compensation available to injured parties. If damages exceed the policy limits, plaintiffs may need to pursue additional legal avenues to recover the full extent of their losses.
