You Need to Know About Low Cost California Auto Insurance if You've Been Laid Off

You Need to Know About Low Cost California Auto Insurance if You've Been Laid Off

We all know how important a good auto insurance policy is. For many drivers

suffering from the massive layoffs that have swept the west coast this year the choice is between paying for their auto insurance and paying for the food on the table, however. When given the choice between eating and insuring their car, you know which way they're going to go! That's why 33.3 percent (give or take) of California drivers on the road today are either driving uninsured or driving without enough insurance to actually cover their back if they're in an accident.

California's taking care of that with their California Low Cost Auto Insurance Program.

How It Works

The Low Cost Auto Insurance program is designed especially for low income drivers. Premiums are determined on a sliding scale based on income rather than a flat rate based on the multiple tiny factors that work together to form your auto insurance rates. This isn't your usual, unrealistic low income program (like oh, say, Head Start?). Drivers with a family of four are allowed to make up to $50,000, proving that someone finally figured out that even middle class families are having trouble paying their bills these days.

If you've been laid off and you're having a hard time keeping up with the payments on your California auto insurance policy it might be worth it to look into the Low Cost Auto Insurance Program (CLCA). To apply for the CLCA all you have to do is fill out a questionnaire that deals with where you live and what your income happens to be, then submit it. You'll be matched with an insurance company that will use your income, your location and your driving history to establish how much you can afford to pay.

This is not a tax subsidized program. Auto insurance rates are adjusted annually to continue to offer low prices while still bringing in more than it pays out every year. Even with the annual adjustment most premiums continue to be lower than $300 per year. Unless you live in L.A. and Sacramento. Then it's anything goes..although as of 5/11/09 both of these counties were still under $400 per year.

What It Covers

As you might imagine, a required program is only going to offer you enough coverage to keep the state happy. Actually, in this case it offers a little less but someone somewhere was happy with it so we're good to go!

When you enroll in the California Low Cost Auto Insurance Program you're going to be given liability insurance to the tune of:

· $10,000 Bodily Injury Liability per person.

· $20,000 Bodily Injury per accident.

· $3,000 Property Damage per accident.

California auto insurance minimum limits are ordinarily higher than these, but the state has agreed to start making exceptions to make sure everyone's insured. You also have the option to purchase an extra $1,000 in Medical Payments per person, $10,000 per person Uninsured Motorist Bodily Injury coverage and $20,000 Uninsured Motorist Bodily Injury per accident at an extra charge. Collision and comprehensive are not included at all. You're going to have to pay for that up front through their regular policy, although it is possible to maintain this coverage and still be eligible for the CLCA.

Right now there are over 3.5 million drivers driving uninsured on the California highways. If this is you, pick up the phone. You're not alone, and there's a low cost auto insurance program out there just waiting to help.