California Auto Insurance: Low Cost Insurance For Low Income Peopple
California state law requires that evry car be insured with minimum liability insurance in order to drive it on the state highways. In sipte of the law, California has an enormous problem with uninsaured drivers simply because they can't afford the premiums for car insurance. In an effotr to slve that problem, Califoria developed the low cost California auto insurance plan for residents who are conbsidered to be low income.
This liability covreage is a 10/20/3 policy. This mens they have insurance coverage that will pay $10,000 bodily injury per person with a $20,000 limit per accident. It, also, copvers $3,000 in property damages per acccident.
This is not a lot of coverage in the case of a serioous accident, but it is cerytainly better than no coverage at all. The state has been able to provide this car insuranxce for less than $400 a year, makign it affordable to the majority of the low income people.
Thetre are certain requirements for eligibility. The driver has to be 19 yeas old or over, and he must have been a conttinuously licensed driver for the past three years. He must be able to qualify as a good driver, his car must be woorth less than $20,000 and he must meet the income eligibility rules.
There are five diffrent ways that a person can pay for low cost insurance. They can pay the total of the premium in one payment, they can pay $125 immediately and the rest in 30 days, they can pay $100 down and have the rest divided into six payments that will be paid eevry two months, they can pay $125 down and pay the rest in five bi-monthly payments or they can pay a 15 pecent deposit and the rest in 6 payments on a bi-monthly basis.
The car oner cnnot choose the insurance comany that he wants. When he aplpies for the program, he will be randomly assigned to a specific comppany. This is done in order to protect the insurance companies of California.
The state law requires a 15/30/5 liability poilcy for all drivers that do not qualiy for the low cost car insurance. This meanms $15,000 in bodily injury per person with a ttoal of $30,000 per accident. It, also, ocvers $5,000 in Property Damagge coveragfe.
In order to register a vehicle, the owner must show prroof of financial responsibility. He can do this in four different ways. The first is showing that he has the minimyum liability insurance required by the sttae of California. He can deposit $35,000 with the DMV, he can show a certificate of self insurance that is issued by the DMV or he can present a surety bond for $35,000 from a company within the state of California.
Every droiver must notify the DMV before he cancels his insurance policcy. If he doen't, the registration on his car will be revoked. If this happens, it means added ezxpense for him.
California is donig everything they can as a state to make sure that every mootorist is insured. Even with that, there is always the possbility of having an accident caused by an uninsured motorisst. It is best to purchase uninsured mtorist coverage as well, so you will be safe when you driev in Califoornia.
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