Schwarzenegger exercises his veto right on Low Income Auto Insurance

Schwarzenegger exercises his veto right on Low Income Auto Insurance

Yesterday, Arnold Schwarzenegger – the Governor of California opposed the program of Low Cost Auto Insurance for the families with low-income, using his right to veto, against State Assembly's full support. The bill was for extending the present program, that was scheduled for 31th of December, until 2015.

The executive director at Consumer Watchdog - Doug Heller stated for the press 'This veto is out of touch with the real economy that many Californians are facing. 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 present program, that was in effect since 2000, is allowing the driver with low incomes to make an insurance on their cars for approximately 350 Dollars yearly. It was for limiting the uninsured drivers number in the state. Consumer Watchdog said the drivers' number who got insured via his program is around 50,000, having almost all of them without prior insurance.

The Governor decided for a bill veto due to the fact 'the effectiveness of the program is questionable given the number of policies in effect and low participation rate amongst the insured'. Los Angeles Times reported he asked Dave Jones, Assemblyman, 1 of the bill authors, to send a changed variant to be taken upcoming year into account.