CA's CLCA Program Helping Low Income Drivers Get Insured

The state of California has been struggling to deal with the number of uninsured drivers that are on the road. According to the latest statistics, there are more than four million drivers on the road who lack car insurance coverage. Even though car insurance coverage is mandated, many residents still break the law to save money. The state has a huge deficit and many drivers are living at or below the poverty line.
There is a program in place that will help drivers become insured. It is called the California Low Cost Automobile Insurance Program. It was created in 1999 and allows drivers to get help paying for their liability car insurance coverage. This is a drawback to lower income drivers who have financed vehicles that need collision or comprehensive coverage. This is because it will not help to pay for their insurance premiums for them.
Currently, drivers pay approximately $28-$30 per month for their liability coverage when they participate in the program. This has helped many families be able to follow the law and become insured. Now premiums have dropped nine percent for the participants.
Because the economy is so bad right now, the eligibility requirements for the program have been changed. Now, the income eligibility requirements will increase which will allow more drivers to be added to the program. A single person has to make $27,925 or less to qualify and a family of four needs to make $57,625 or less in order to qualify. This change will help even more people who are struggling just to pay the bills. Each participant will get a temporary insurance card when they sign up for the coverage. Before, drivers had to wait two weeks to be able to get their proof of insurance. Each driver can choose one of five payment plans such as paying their premiums up front or by having a deposit in place for a specified period of time.
States with higher insurance rates such as Michigan and Florida should consider this type of program. In an era where many people have lost their jobs, it is crucial to have programs that can help to lend a hand to those in need. Liability insurance coverage is vital to have when an automobile accident takes place. If the states can find it in their budgets to have this kind of program then it will help to keep the roads much safer.