Auto Insurance Program for Low-Income Drivers
The Department of Insurance and the California Highway Patrol are heavily promoting a low-cost auto insurance program. The reason the program is being pushed aggressively is due to fears that high unemployment and concern that more motorists will drive without auto insurance are growing in the San Joaquin Valley, Ca. area.
About the Program
According to 2007 estimates from the state Department of Insurance, roughly 18 percent of Californians did not have automobile insurance. With unemployment at over 14 percent for Fresno County as of Sept. 2009, many assume that the 2007 estimate is much higher now.
As a result, the California Low Cost Automobile Insurance Program was created to help everyone obtain basic liability coverage required under state law to low-income drivers. It provides drivers proof of insurance coverage amount to $10,000 per person, $20,000 per accident, and $3,000 for property damage for a cost of $258 per year. Insurers can also upgrade their coverage for a few dollars each month.
How to Qualify
To qualify for this coverage, you must be at least 19 years old, have a good driving record and own a vehicle valued at less than $20,000. Also, you must earn equal to or less than $36,425 per year for a family of two, or $55,125 for a family of four.
The hope is that with this coverage option, more drivers will be armed with the insurance they need. If you think you qualify for the program, you can learn more by visiting California’s Department of Insurance. However, if you don’t qualify, you could search for other affordable auto insurance to avoid paying too much for your coverage.