Car insurance is mandatory in the state of California, but cheap car insurance, for many would-be drivers, is still too difficult to obtain. California’s Low Cost Auto Insurance plan is intended to help low income drivers afford insurance, but the conditions for participation are too restrictive and severe. Young drivers, new drivers and cars without a clear title don’t qualify for low-cost coverage. Thus, the issue of preventing low-income drivers from operating uninsured, unregistered and sometimes unsafe vehicles remains.
At this time, State Low Cost Auto Insurance is available in California to any low-income driver who is over 19 years old, has a good driving record, and has been licensed for three consecutive years. The insured vehicle cannot be worth more than $20,000, and it must be owned outright by the insured. These rules protect the insurance industry from excess liability. But do they keep Californians safe?
Cheap car insurance should be available to everyone, especially to those who are most in need. (more…)