Low Income Car Insurance Programs

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low income car insurance programs

Low Income Car Insurance Programs

Several select states offer low income car insurance assistance for those that meet specific financial requirements. However, most states don’t have programs for those struggling to afford auto insurance. This is why it’s so important to shop around for the best rates and carefully choose the coverage that can save you a lot.

Auto insurance is an essential expense that almost all families have. In all but one state, if you operate a motorized vehicle, it must be insured. Basic coverage can cost hundreds of dollars each month. For many individuals and families, this cost can be overwhelming.

State Programs that Offer Assistance to Lower-Income Residents

New Jersey has a Special Automobile Policy known as SAIP. This program is called NJ Dollar a Day Car Insurance because it costs exactly $365 if paid in two installments. If paid upfront in full, it costs just $360 annually. It’s important to note this coverage is minimal. It only covers medical care-related expenses resulting from an accident.

The New Jersey SAIP program does not cover liability or damages to your car. Therefore, you could be responsible for a huge vehicle repair bill with this limited plan. Still, for those NJ residents that cannot afford standard coverage, it can be helpful to get legally insured. Remember that it is “bare bones” coverage and should not be considered unless other options are available.

To be eligible for a $1 dollar New Jersey low income car insurance program, you must be actively enrolled in Federal Medicaid. You can contact a nearby licensed agent and apply for SAIP in just a few minutes. Most local agencies sell NJ low income auto insurance plans. If, for whatever reason, yours does not, contact a representative at the Personal Automobile Insurance Plan, and you will be put in touch with one that does. Their toll-free number is 800-652-2471.

Make sure you present a current Medicaid card to the agent, as you will need proof before implementing your policy. Make sure you have your card with you at all times, inside your car, in a place that’s easy to remember. Be aware that the NJ Dollar-A-Day car insurance program offers limited insurance. It would be best if you got enhanced protection as soon as you can afford better coverage.

California Low-Cost Cost Car Insurance Program

There are more automobiles in California than in any other state. It’s also an area where car insurance rates can be out of reach for many residents. This is where the CLCA or California Low Cost Auto Insurance or CLCA program helps eligible participants with affordable coverage. Created in 1999, this valuable program has helped thousands of individuals and families buy cheap CA car coverage. The California Department of Insurance does not administer the CLCA insurance program. Instead, it is sold through select carriers that work with the California Automobile Assigned Risk program throughout the state.

CLCA insurance provides legal amounts of coverage for good drivers. There are several requirements. These include:

  • Possess a Valid California Driver’s License or have an AB60 license
  • Must be a minimum of 19 Years Old
  • Yearly Income under 250% of the poverty level, and You Must show Proof
  • The Automobile Being Insured Must be Worth Less than $25,000
  • Limitations of Two Automobiles and Two Policies per Person
  • Have no more than One Point from a Moving Violation on Your Driving Record in Three years
  • Have no more than one At-Fault Auto Accident in Three years

Average Annual CLCA Car Insurance Costs

Savings under the California Low Income Car Insurance Program can be significant. Many motorists with a safe driving record and no accidents can get covered for less than $400 annually. Here are some average yearly premiums under the program for several cities.

    • Los Angeles $433
    • San Diego $266
    • San Francisco $309

One way to lower your premium is to maintain a safe driving record and avoid accidents and tickets. You can be banned from these programs for getting a DUI or being found at fault for a reckless accident that resulted in a death or serious injury. Also, if your income exceeds the annual threshold, you must inform the CLCA program.

Find Cheap Car Insurance Online if you Don’t Qualify

Most people will not qualify for state low income car insurance programs. If you don’t, you can still lower your premiums. Start by comparing multiple quotes online.
Also, eliminate wasteful and overlapping coverage and get all the discounts you can. Enter your zip code now and find better coverage at lower rates.