Low cost liability insurance could give low-income individuals a break

OLYMPIA – In Washington, automobile drivers are required to carry standard liability insurance. Although drivers need this protection in case of a fender-bender or worse, many people don’t have automobile liability insurance simply because they can’t afford it.

Sen. Rosa Franklin, D-Tacoma, said there are many uninsured motorists in our state and it’s typically low-wage earners who fall into that category.

“Low-income individuals want to be responsible citizens like everybody else,” said Franklin, sponsor of Senate Bill 6024. “However, when you make minimum wage, you frequently have to make hard choices: Do I pay the rent, buy my children clothes or pay my car liability insurance? Nine times out of 10, paying for car insurance is the first off the list. Nobody should have to make that choice. And I’m hoping we can help those folks with this bill.”

Currently, Washington law says that drivers who injure another person or their property must provide compensation. For riskier drivers, the state created the Washington Automobile Insurance Plan, which provides insurance to drivers who can’t otherwise qualify for automobile insurance.

Franklin’s bill, modeled after the California Low Cost Automobile Insurance Plan, would allow qualified, low-income drivers to obtain liability coverage that is lower than required for standard coverage.

Key provisions of SB 6024 are that it would:

• set required liability limits for $10,000 for bodily injury or death of a person in one accident; $20,000 for bodily injury or death of any two persons in one accident; and $3,000 for property damage to others in any one accident;
• allow drivers with household income up to the 200 percent of the federal poverty level to qualify;
• give the Office of the Insurance Commissioner the authority to assess a driver for risk factors; and
• provide coverage for one year, but would be renewable as long as the policyholder meets the criteria.

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