California Low Cost Car Insurance
Finding low cost car insurance is a priority for drivers with low budgets. The state of California has decided to help its drivers afford insurance for the purpose of reducing the number of uninsured motorists. The result of its decision is the California Low Cost Car Insurance Program that was especially designed for low-income drivers.
This program began in 2000 as a pilot program meant to help Los Angeles County and San Francisco County and City drivers afford car insurance. The results registered determined the authorities to expand the range. Nowadays, the program which offers low cost car insurance for less fortunate drivers covers the entire California state. The program focuses on offering lower liability limits for drivers that meet certain standards. The limits involved by this source of California low cost car insurance are of $10,000 in case a single person is injured as a result of an accident, of $20,000 in case of a multiple victim accident and of $3,000 for property damages. There is also available additional coverage. For an extra charge you can benefit from medical insurance per person in value of $1,000, uninsured motorist insurance per person of $10,000 and uninsured motorist insurance per accident of $20,000.
To be eligible for this California low cost car insurance, a driver must be at least 19 years old and the owner of a driver license at least three years old, must own a vehicle estimated at $20,000 or less, must qualify as a good driver and must also meet the income standards. To be considered a good driver, the applicant must not have been involved in more than one property damage only accident and must not have a vehicle record that includes a felony or misdemeanor conviction that was the result of a Vehicle Code violation. The income eligibility depends on the household’s gross annual income. The amount is compared with the federal poverty level and must represent maximum 250% of its value. The definition of a household includes all the persons that live in the same house as long as they are related by marriage, blood or guardianship. For example, to be eligible for this program a 1 person household needs to have a maximum gross income of $27,075 per year. As the number of family members grows, the minimum amount of gross income required also increases. Another restriction imposed by this program states that no other household vehicle can be covered by a policy other than the one provided by this California low cost car insurance program.
If you want to know how you can apply for this program, you should know that an online questionnaire is available and by answering the questions it contains you will find out if you are eligible or not. If the answer is yes, you will automatically receive a list of certified producers available in the area where you live. You will only have to enter the accurate zip code. By contacting the producer you will apply for the low cost car insurance offered through this program. The producer will help you fill the necessary application and will also require you to pay a deposit and provide a number of documents. You shouldn’t be worried about extra fees, because by law, the producers aren’t aloud to charge additional fees for such applications.
If you decide to take advantage of this California low cost car insurance, you should keep in mind that you don’t get to choose the car insurance company you have faith in. Your application will end up to an insurance company after a random assignment process.
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