SACRAMENTO, CA – Governor Newsom has signed Senate Bill 1295 by Senator Rubio (D-Baldwin Park).  SB 1295 will ensure that consumers with auto insurance coverage policies are protected under the law from unfair auto insurance cancellation practices, and clarifies that consumers have 10 days to cure a nonpayment. 

“District offices have received numerous inquiries from constituents who are being dropped from their auto-insurer for being just one day late on their monthly or annual premiums, often due to bank errors or a credit card mishaps.” said Senator Susan Rubio.  “This results in these people having to reapply for insurance, then undergoing a 15 day waiting period before they can legally drive again. In the absence of an opportunity to cure a missed payment, constituents are finding themselves unable to timely secure new policies.”

Auto insurance premiums are at an all-time high for many Californians, and some insurers have reduced options for installment payment plans. People are struggling to stay current. Mailing and e-bill payment errors and delayed payments are common.  This bill will help prevent lapses in coverage and the significant financial repercussions they cause for individuals, families and workers who rely on their cars to earn a living.

"By clarifying that auto insurance consumers have 10 days to cure an overdue unpaid premium, SB 1295 will help people avoid cancellations and stay protected for their own benefit and the benefit of other drivers on the road. Escalating premiums are putting new pressures on consumers, and United Policyholders is pleased that this common sense bill now going to become law." said United Policy Holders Executive Director Amy Bach the sponsor of the bill.

For more information, visit the website of Senator Susan Rubio at https://sd22.senate.ca.gov/

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