California is one of those states with higher than average unemployment rates. With this in view, families are checking through their monthly expenses a bit more carefully. One of these expenses they are trying to cut back on is car insurance premium payments. As expenses get more difficult to pay there is a chance that people may choose to go without the state minimum car insurance policy.
At one point number of uninsured drivers in California reached nearly thirty percent. Even though it is illegal to drive without the necessary coverage drivers are taking the risk of traffic violations or the suspension of their license. The State of California is aware that drivers are not insuring their vehicles because they simply cannot afford it. Even the California Highway Patrol is aware of the issue.
This is the primary reason the state insurance department and other authorities are working together to teach drivers about low cost options. With the new program more drivers are able to get affordable policies and drive legal. According to officials from the City of San Francisco, California low cost auto insurance program offers lower basic liability vehicle insurance than the state normally requires.
Therefore, it does so at a drastically reduced price. For example, a driver who qualifies for the program would be able to get coverage for their vehicle under $400 dollars a year for $10,000 worth of coverage per individual. Also, they would get $20,000 per accident for bodily injury and $3,000 for property damage liability.
This lower than average coverage helps many drivers to have some sort of protection. However, not all drivers qualify for the program. Under state law, drivers can qualify for cheap auto insurance if they are at least nineteen years of age and have a good driving record. They have to have a vehicle that is priced less than $20,000 too.
Drivers who hope to qualify for these plans must meet certain earnings restrictions based on their yearly tax returns. A family of two cannot make more than $37,825. These figures for qualification and limits offered may change. Please, check the official website.
Previously the earnings where based on a payment stub from their employer. Since the State of California found many where earning more than the amount to qualify through other earnings such as child support payments, earnings from self-employment, or money from dividends, the state changed the policy to a yearly tax return instead of a recent pay-stub.
The low cost car insurance policies are catching on though. The amount of people enrolling for the program tripled in the year 2010. In the city of San Francisco, the amount of uninsured drivers was reduced from twenty-one percent to less than fourteen percent.
The expectation is that by passing on the information about availability of such programs the numbers will continue to fall. The State of California is hopeful about the program too since the costs for uninsured drivers are in the hundreds of millions.
According to statistical data, many states in the US have an increasing number of uninsured drivers. If the economy does not improve soon it is questionable if the numbers will fall nationwide. The good news is there are other states getting programs that are comparable to the State of California’s more affordable car insurance initiative.
Drivers that are considering forsaking insurance to pay other bills should check with their state to determine if there is a low cost auto insurance program available. Quite a few states allow qualified drivers to buy low level of coverage so that it is affordable. It is better than having to deal with the legal situation with drivers who causes accidents without car insurance.