The state of California requires drivers to have liability insurance. For many drivers, the cost of insurance has become out of reach. The state has implemented a low cost CA auto insurance plan for drivers who qualify.
In order to qualify, you must meet certain eligibility requirements.
Drivers must have a good driving record to qualify. They can not have had more than one accident in the past three years and can not have had more than one moving violation in the same time. They must be at least 19 years of age and have had their driver's license continuously for at least three years. In addition, they can not have had any felony convictions or they do not qualify.
The vehicle that is to be insured must be valued at less than 20, 000 dollars. Additionally, all vehicles in the household must be covered under the plan.
In order to qualify for the program, a family of four must have an income roughly under 45, 000 dollars.
The amount of money you can save on insurance will vary by county. Drivers in some counties will pay less than 200 dollars per year for auto insurance. Other drivers will pay over 300 dollars per year. Los Angeles county is the most expensive for insurance with rates currently being set at 368 dollars per year.
There are several ways the payment can be split up. If you choose to pay in full you save the four dollar per payment service charge. Otherwise you can choose to make an initial payment of either 100 dollars down or 15 percent down and split the remaining cost of the policy over six payments paid every other month or you can make an initial payment of 125 dollars with the reminder of the premium split into five other payments made every other month.
For under 70 dollars in all counts except Los Angeles, where the cost is 123 dollars, you can add medical coverage and uninsured motorist coverage on your vehicle.
This is a great option for drivers who can not afford insurance for their vehicles. The low cost CA auto insurance allows drivers to fulfill their liability under the law to have insurance on their vehicle, but also makes it possible for them to fulfill their other financial obligations.
Other states would do well to follow the example of California in providing a program that allows drivers to have low cost auto insurance that meets the basic obligation of the states laws.