Assembly passes bill for low-income car insurance program

By Cy Ryan

Tuesday, April 26, 2011 | 10:34 p.m.

CARSON CITY — A bill to create a budget auto insurance program for low-income drivers in Clark County has found new life.

The bill was defeated Monday in the Assembly, but it was resurrected Tuesday and gained a 29-13 favorable vote.

AB 299 would start as a pilot project in Clark County.

The state insurance commissioner would fashion the program and impose a 50-cent levy on all other auto insurance policies to finance the administration of the project.

Now, the law requires minimum coverage of $15,000 per person and $30,000 for two or more people per accident, and property damage coverage of $10,000 per accident.

A reduction under the bill would require $10,000 coverage for bodily injury or death and $20,000 for two or more people per accident. Property damage coverage would be required to $3,000.

The bill stipulates that to qualify for the low-cost insurance program, drivers must fall below the federal poverty line and have cars valued at $20,000 or less.

Assemblyman Kelvin Atkinson, D-North Las Vegas, said California has a similar program that is successful.

The insurance commissioner would set the rates.

The bill required a two-thirds majority to pass. It failed to gain enough support Monday, falling on a 26-16 vote. The vote Tuesday was 29-13, with all the opposition coming from Republicans.