Low Cost Auto Insurance for Californians
June 7, 2010 – 10:27 am
It’s not the kind of thought that will comfort you as you drive on California’s streets. But the fact is that millions of Californians are believed to be driving without auto insurance. Insurance can be expensive, and experts estimate that the numbers of Californians who possess minimum auto insurance, dropped when the recession hit.
However, Los Angeles personal injury attorneys would recommend that motorists who can’t afford to buy regular auto insurance, at least opt to buy a low-cost insurance that covers basic needs in case of an accident. The California Department of Insurance oversees a low-cost auto insurance program for those who can’t afford extensive insurance. The program provides liability coverage for costs as low as $400 a year.
According to the Insurance Research Council, about 18% of Californians are likely driving around without insurance. There’s no way of knowing exactly how many drivers are out there motoring without insurance, but considering the number of Uninsured Motorist coverage claims that Los Angeles personal injury lawyers come across, the numbers are likely very high. With a low-cost insurance program, those who can’t afford regular insurance, can achieve at least the bare minimum coverage, and stay on the safe side of the law.
The California Low Cost Auto Insurance program was established in 2007. The program is available to persons residing in the state of California. It is available to those people who make a maximum of $55,125 annually. That estimate is for a family of four. If it is an individual motorist, the maximum earnings per year must be $27,075 in order to be eligible for cover under the program. Candidates must be at least 19 years of age, and they must have been licensed continuously for the past three years. It goes without saying that driving records must be fairly clean. Also, it’s important that the value of the vehicle be a maximum of $20,000.
These insurance policies provide cover of up to $3,000 in property damage, $10,000 for bodily injury per person, and $20,000 per accident. Obviously, this amount may not be sufficient if you’re involved in a major accident, but it can cover the costs of a minor fender bender-accident related damage.
You must be logged in to post a comment.