California is one of those states with higher-than-average unemployment rates. With this in view, families are checking through monthly bills a bit more carefully. One of these expenses they are trying to cut back on is the premium. As they get more difficult to pay there is a chance that people may choose to go without the minimum vehicle insurance policy.
At one point, the number of uninsured drivers in California reached nearly thirty percent. Even though it is illegal to operate a motor vehicle without the necessary coverage, they are taking the risks of traffic violation tickets or license suspensions. Authorities are aware that people cannot afford to pay the premiums and that is why they take chances. Even the Highway Patrol is aware of the issue.
This is the primary reason the state insurance department and other authorities are working together to spread the words about low cost options. With the new program more drivers are able to get affordable policies and stay legal. According to officials from the City of San Francisco, California low cost auto insurance program offers lower basic liability than normally required.
Therefore, they are available at a drastically reduced price. For example, a driver who qualifies for the program would be able to get coverage under $400 dollars a year for $10,000 per person, $20,000 per accident bodily injury and $3,000 property damage liability.
This lower-than-average coverage helps people to have some sort of protection. However, the program has qualification requirements. People can only claim these policies if they are at least nineteen years of age and have a good record. They have to have a vehicle that is priced less than $20,000 too. So, this is different from assigned risk, which is for people who are too risky to find anything in the market.
Also, they must meet certain earnings restrictions based on yearly tax returns. A family of two cannot make more than $37,825. These figures would change in time so you should check the official website.
Previously the earnings were based on a wage stub from an employer. Authorities found many were earning more through other sources such as child support, self-employment or dividends, and therefore they changed the rules to a yearly tax return that takes all of them into account.
The low-cost automobile 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 number 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 offers the numbers will continue to fall. The State of California is hoping to reduce the burden of such drivers, as the costs are in the hundreds of millions. When they choose to contribute to the premium pool there will be more money to pay for the damages they cause.
According to statistical data, many other states have similar problems. If the economy does not improve soon, it is questionable if the numbers will fall nationwide. The good news is similar initiatives across the US will offer more affordable car insurance.
People should check if there is a solution that will help them get affordable policies before forsaking coverage to pay other bills. It is a better solution for everybody. Authorities bring in money to deal with the losses caused and people don’t need to worry about the legal situation.
In general, you shouldn’t give up easily as there are so many companies with different rates that you may be able to find a good deal in the market if you cannot make the cut for this offer. Also, finding a competitive provider may allow you to increase liability limits.