The California Low Cost Auto Insurance Program
The California Low Cost Auto Insurance Program
As with most states, California Law requires drivers to maintain basic liability insurance when driving or parking on a public road. Despite these regulations, the State of California continues to see record uninsured driver rates; with some figures as high as 20%. Recent increases to auto insurance rates, combined with high unemployment rates, have created an environment where many drivers simply cannot afford to pay their insurance premiums.
The State has long been aware of these issues and in 2001 began to pilot the California Low Cost Auto Insurance Program. While California law requires drivers to maintain basic liability limits for bodily injury ($15,000 per person / $30,000 per accident) and property damage of $5,000, the California Low Cost Automobile Insurance Program offers reduced limits with bodily injury at ($10,000 per person / $20,000 per accident) and property damage at $3,000.
The basic policy is available statewide, to qualified drivers, for under $400 a year and drivers are able to add uninsured motorist bodily injury coverage ($10,000 per person / $20,000 per accident) and medical payments ($1,000) for an additional premium.
The program seeks to help low-income and unemployed drivers get coverage and has the following requirements to qualify:
Driver's gross annual income needs to be less than 250% of the federal poverty level; currently $27,075 for individuals and $55,125 for a family of four (see full list here),
Drivers may cannot be a college student claimed as a dependent on some else's State or Federal tax return,
All drivers on the policy need to have a good driving record and cannot have more than 1 at fault property damage claim or moving violation during the last 3 years,
Applicants must be at least 19 years old and have been driving for the last 3 consecutive years,
Male applicants who are unmarried and under the age of 25 will see a 25% surcharge on premium,
Only one vehicle per policy and no more than two vehicles per person,
Vehicle cannot be worth more than $20,000, and
Drivers cannot have other liability insurance covering the insured vehicle or other vehicles they own.
The program is not right for everyone, but can be a great solution for those needing a little help through these tough economic times. Uses of Used Trucks Bad Credit Auto Dealers and Their Partnerships Auto Loan Tips in Georgia Diy Automobile Fix Troubleshooting Austin Auto Insurance, Why Pick Local? Auto Loan Calculators Aurora Types And Risks of Dump Trucks Car Refinance Loans - Trimming Those Auto Loan Payments Acquire Many Auto Car Insurance Quotes and Acquire Great Rates and Protection New Jersey Car Insurance - Enjoy A Pleasant Ride Pennsylvania Car Insurance - Drive Your Way To Safety What Are The Requirements For Texas Car Insurance? The Benefits Of Auto Insurance