California’s Low Cost Car Insurance

There is a program in California geared specifically towards drivers who can’t afford a regular auto insurance policy. These drivers must go through a certain process to be found eligible to participate in this program, so not just anyone who thinks they should deserve it will be given this opportunity. This program, known as the Low Cost Auto Insurance Program, is run by California Legislation through certain car insurance providers. It aims to help drivers who cannot afford the expense of a normal car insurance plan due to low income. With regular auto insurance, policyholders are required to provide certain information to the insurer, such as where they live, how long they’ve been driving, how many traffic incidents they have been involved in, they type of car they drive, and some other things. This information is collected and a rate is determined from this information by the insurance company. Some drivers only make a certain amount of money, which limits their dwelling options. Most often, low paid drivers end up living in lower income areas with higher crime rates. This is one example where a good driver will end up paying higher insurance, due to no bad driving on their part, because insurers charge higher premiums to someone who lives in a higher crime area.