Low Cost Auto Insurance

Last weekend, the L.A. Times published this article about a state program that helps provide low-income Californians with auto insurance at a reduced cost.

The article pointed out that there are estimated to be millions of California drivers without auto insurance, and the number is growing because of the bad economy. It’s almost impossible to estimate exactly the number of California drivers without insurance, but a 2008 report by the insurance industry estimated about 18% of California drivers at that time did not carry insurance. In addition, since 2008, the unemployment rate in California has more than doubled, so the number of uninsured has most likely risen significantly as families have been forced to choose which expenses to cut.

A lot of drivers are tempted to drop insurance when times get tough. However, getting caught without coverage can result in hundreds of dollars of fines and getting your vehicle impounded.

Many drivers are not aware of a program run by the California Department of Insurance that provides liability coverage for about $400 per year. The California Low Cost Auto Insurance program helps families of four making less than $55,125 per year or individuals making less than $27,075. You can learn more about the program by calling 866-602-8861.