Finding Low Cost Auto Insurance

September 26th, 2013 Uncategorized

Are you struggling to find affordable car insurance quotes no matter how hard you try? You are not alone and there are many low income families who finds premiums too high for their budget. This problem is highlighted especially when you are living in a city center location. The rates can be a lot more higher in cosmopolitan areas. When you add high rents as well you can see why it would be difficult for families to cope with costs.

In some cities uninsured automobiles can be as high as twenty percent. This is a real problem for authorities who are responsible in setting the minimum liabilities policy requirements. A few states are trying to find a solution for this problem and coming up with new low cost coverage arrangements. The aim is to get more motorists buy insurance cover and reduce the burden of uninsured drivers on the insurance industry and local authorities.

cheap car insuranceWhen a driver is uninsured and cause an accident he cannot pay the damages caused to others and road structure. These costs have to be handled by auto insurers of third party drivers. In a way, insured drivers end up paying for uninsured one. This results in higher premiums for every body else. And the states and local authorities have to face the costs themselves.

The solution offered with low cost policies is seen the way forward. In an attempt to reduce costs and make it more affordable some states agree to reduce the level of minimum coverage and create special types of coverage. The premiums are brought down by way of cutting cover. This is not the ideal solution but it is one that can get more people on board.

These policies are not available to everyone. There are qualification requirements like earning thresholds and location. Your household earnings need to be less than certain amount a year. Then, you can purchase them through your state insurance department or participating insurers. The schemes are usually run by the state and you can find more information from your state insurance commissioner’s website.

One of the states that run these programs is California. They manage these programs for a while now and thank to it they could bring the number of uninsured vehicles down to the levels of national average. In California you can get covered for about $400 if you meet the qualification requirements. The premium cost could be as low as half the cost of a standard basic mandatory coverage that makes them highly desirable.

Generally, states that offer these packages feel they can now go heavy on drivers who fail to provide valid proof of insurance. They believe that they have taken away the obvious excuse of policies being too expensive. For example, California State rolled heavy penalties for being uninsured in conjunction with low cost policy offers. They believe that these two factors were instrumental in bringing the numbers of uninsured drivers down.

So, your first job is to call your state and find out about availability of any special deals for poorer families. They will guide you through their program or tell you where you can find them. You can alternatively search online to see your options.

 


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