Getting your Low Cost Auto Insurance

There are some drivers who know the value of car insurance and also that it is required by law, but due to financial hardship they cannot afford to purchase even the minimum coverage. Luckily for Californians who fall into this category, there is a program called the Low Cost Auto Insurance Program, which makes coverage available to safe drivers who meet the standard requirements. These drivers have access to an acceptable insurance policy for a price that can fit their budget. It’s a program that is monitored closely, and there are heavy penalties for trying to commit fraud by providing false information in order to use the program.

Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.

Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.

Who Can Participate?
According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.

The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”

What Is The Coverage?
The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it.

What Companies Offer It?
As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.

Are There Other Limitations?
The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.

Not Eligible?
For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.