If you haven't caught the news lately, uninsured drivers on the California highways are a problem. A big one. Right now approximately 33.3% of licensed California drivers are out on the streets without any kind of auto insurance, and those are just the ones they know about! With the economy taking dangerous dips as President Obama struggles to find some equilibrium, drivers are desperate for other answers.
They're finding them with the California Low Cost Auto Insurance Program.
The California Low Cost Auto Insurance Program is the first of its kind, an auto insurance program designed exclusively for low income drivers to stamp out the problem of uninsured drivers out on the California freeways. Rather than applying a fixed rate based on circumstances the California Low Cost Auto Insurance program determines auto insurance rates on a sliding scale based on income. While high risk drivers and drivers in high risk areas are still going to pay more for their insurance coverage, regardless of how good or bad their driving happens to be (hey, no insurance program is perfect!) the average cost of an insurance policy is still less than $300 a year.
Unless you live in Sacramento or L.A. But even coverage in those areas is dramatically less than it is using a regular insurance policy!
The CLCA (California Low Cost Insurance Program) only offers mandatory liability coverage to its members. Drivers are able to purchase $10,000 Bodily Injury Liability per person, $20,000 Bodily Injury per accident and $3,000 Property Damage per accident, as well as $1,000 in Medical Payments per person, $10,000 per person Uninsured Motorist Bodily Injury coverage and $20,000 Uninsured Motorist Bodily Injury per accident at an extra charge. Collision and comprehensive insurance are not a standard part of the package, but drivers can and should purchase these policies separately from the insurance company providing their coverage if they're able.
Before you click the little "X" in the right hand corner because you're convinced you make too much to take advantage of this, check out the current income limitations. This isn't one of those "low cost" programs designed to persecute the middle class because they make enough to pay their rent on a fairly regular basis. At the time this article was written a family of four is able to qualify with an income of $50,000 a year or less annually, and while that may change over time it still shows a willingness on the part of this program to work with California drivers to make the roads safer for everybody.
No one should ever be out on the roads without auto insurance, no matter what their income happens to be. It's not smart, and it's just not safe. If you're struggling with your auto insurance rates and thinking about tossing the whole thing to the birds, think again. The California Low Cost Auto Insurance Program is offering you a better solution.
