Currently, economic conditions across the nation are very tough and it can be very tough for low income drivers to pay auto insurance premiums. In states where they mandate that drivers obtain car insurance, simply going without is not a possibility. Legislators have attempted to rectify this situation somewhat by offering low cost car insurance coverage for low income drivers, as in the states of California and New Jersey.
One such program is the California Low Cost Auto Insurance Program. This program offers basic liability coverage at a regulated rate. The exact car insurance quote varies throughout different counties but is typically less than $400 a year. This program provides $10,000 for each person, $20,000 for bodily injury coverage in an accident, and property damage liability coverage in the amount of $5,000. In order to qualify for these programs a driver must be at least 19 and must not make more than $36,425 in a two-person family, or $55,125 with a four-person family. In addition, the vehicle must not be valued at more than $20,000 and they must possess a good driving record, as well as the fact that the driver must have been continuously licensed for the last three years. New Jersey also has a plan available to help people afford automobile insurance. This plan covers more expenses than the California plan does. It pays up to $15,000 for the majority of medical expenses as a result of an accident. Also, in cases of catastrophic injuries, the plan will pay up to $250,000. In order to qualify for this plan one must be eligible to qualify for Medicaid
This program seems like a great opportunity but it is not without its drawbacks. Some claim, such as the governor of California, Arnold Schwarzenegger, that the participation rate of the program is low, only a fraction of the millions of uninsured motorists in California actually take advantage of it. His detractors claim that while the number of participants taking advantage of this program is low, more benefit from this program than just those who are insured by it. Anyone who is hit by someone with this insurance receives benefits as well.
Another criticism is that the coverage provided may be insufficient to cover all expenses in many accidents. The program will last until at least the end of 2010, when it is scheduled to expire. Auto Insurance remains a costly expense and California and New Jersey have instituted programs to help with the cost. There are limits to the coverage provided, but these plans provide a more affordable way for many people to drive legally. Low income drivers deserve to be on the road as much as anyone, and these problems help.
