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Understanding California Car Insurance for Low Income Program

In order to ensure that all California residents have minimum liability insurance in the event of a car accident, the state came up with the low cost auto insurance plan for all those who are deemed as low income earners under the insurance law. This has become a problem in California since it is one of the most densely populated states in the US. The minimum liability coverage required by law to all residents under the low cost auto insurance program is $3,000 for property damage for every accident, $10,000 for bodily harm to one individual for each accident and $20,000 for bodily harm per accident for multiple persons.

It may not be much considering the exorbitant cost of medical expenses and other expenses like car repair. It is however better than having no California car insurance coverage at all. If you have a low income, you can get cheap California car insurance for as low as $400 annually. This is very affordable to the majority of low income earners living in the state. However to qualify for the program there are a few requirements you need to fulfill. You must be 19 years old and above and must also have driving experience for three consecutive years. He or she must have maintained a good driving record. They must also prove that the car they intend to insure is worth less than $20,000.

After fulfilling the requirements, there are a few ways to go about paying for the low cost California car insurance. If the resources are available at the time, you can pay for the whole amount for the year upfront as a single payment. Pay a partial amount of $125 and the rest in the next 30 days and pay a partial amount of $100 with the rest being spread over a period of 6 months payable after every 2 months. They can also provide a down payment of $125 and the balance be paid in 5 bi-monthly installments. One can also pay an amount totaling 15% of the total amount and the rest in 6 bi-monthly installments.

The disadvantage is that you do not have the freedom to choose which California car insurance company will provide the coverage. The state assigns you a company helping to protect the auto insurance companies in the process.

Despite the good effort by the state of California to ensure that all motorists are insured, there are still instances of accidents by uninsured motorists and it may be advisable to dig a bit deeper into your pocket and buy uninsured motorist coverage in addition to the auto insurance cover you already have.

California cheap car insurance for people within the bracket of low income earners is a very convenient and an affordable way to be insured. You may compare the auto insurance prices offered by the program against those of auto insurance companies and see the difference. You can start right on this page by entering your zip code in the provided space above.