Unfortunately there are many individuals who take the risk of driving uninsured simply because they believe that they cannot afford coverage. What these motorists do not realize is that it can be quite dangerous and end up being very expensive if they are caught driving without a policy in place. One thing that a driver may not be aware of is the fact that the state’s Department of Motor Vehicles will suspend their vehicle’s registration once they are notified by an insurer that the policy has been cancel. The fine for being caught without coverage can be quite high, but operating an unregistered automobile in conjunction can put a person in a very bad financial situation.
With a little bit of research and smart shopping, consumers may be able to locate California auto insurance that is affordable and can prevent them from driving illegally. The state’s liability requirements are quite low and if an individual were to take the time to shop around and compare rates of various insurers they may just find the right provider at a price that they can afford. There are many companies licensed to write policies in CA and when an individual starts comparing them they will quickly understand that the prices that they are offered can vary greatly with each company. By obtaining as many quotes as possible a motorist may just be able to find what they are looking for; if they are still unable to find something that they can fit their budget, they need not worry, there are other options available.
The state has developed a what is known as the California Low Cost Automobile Insurance Program (CLCA) to help provide individuals with a good driving record yet have a low-income with an affordable way to obtain coverage. Since it is illegal to operate a motor vehicle without liability policies, the main goal of the program is to help those who may not be able to afford a “standard” policy with a way to abide by the laws with lower costing premiums. It is also intended to help keep uninsured motorists off of the roadways and protect those who occupy the roadways.
There are a few things that residents should understand before they decide to opt for the program. A very important item which should be mentioned is that the program’s liability limits are a bit lower than that of the law. The limit required by the state is 15/30/5, whereas the program will only provide 10/20/3. In the event of an at-fault accident, the policyholder will be responsible for any remaining amount of compensation due to the other party once the policy’s limits have been exceeded. Therefore, although the premium may be cheaper than that of a “standard” policy it offers less protection. One should shop around as much as possible and purchase this type of coverage as a last resort to protect them in future. In addition, not all individuals may be eligible and the following must apply; the applicant must have be considered a good driver, be at least 19 years of age and continuously licensed for the past three years, have a vehicle that does not exceed a value of $20,000 and meet the income requirements. The premium varies within each county and one can easily view the rates that they can expect to pay on the state’s website. This can help with a comparison if they want to shop around and compare prices before deciding to take this option.
Source: http://www.onlineautoinsurance.com/california/
