With an estimated 400,000 people in California driving in absence of auto insurance policy, Department of Insurance is planning to launch a major promotional campaign, later this year. It will focus on options that would facilitate lower cost premiums for drivers who struggle to pay the rising insurance costs.
Pat McConahay from the California Department of Insurance said, “We have to have billboards. We hope to have some advertising. We have been doing some outreach on campuses.”
When asked the reasons for a large-scale promotion, she responded:
“If we get pulled into a road accident and hit by somebody who does not own an auto insurance and vice-versa, then either of the parties will be in a big problem. Hence, a cheap insurance on your vehicle is certainly a winning situation for everyone in California.”
Although Bare bones coverage is readily available in California, only a small part of car owners are legible to obtain it. In an effort to change the statistics, low cost auto insurance is to be advertised.
Currently merely 11,000 people in the state of California are enrolled with Bare bones programme. Joe Ridout from Consumer Action hopes to change those figures.
He said, “We presume several thousand drivers are either paying a hefty amount for their liability cover when they could easily avail the benefit of this program or perhaps they are unaware of its existence. It sure is an excellent program that would allow the low income group in California to obtain insurance while saving money which they could utilize for other important purposes.”
What benefits do low-cost auto insurance seeks to promote?
For drivers seeking to obtain low-cost auto insurance should be at least nineteen years and support valid documents for a minimum driving experience of at least three years. The net worth of the car cannot exceed $20,000. Also, you must qualify for the income guidelines. The acceptable income for a four member family would be above $55,000 annually.
California’s Department of Insurance will administer the programme with the sole objective of getting the uninsured insured in the state. Insuring agents participating in the program are responsible for selling the policies. The list of these agents will be sent to you, only if you qualify.
Nancy Lee of San Francisco shared her thoughts on the proposed low-cost insurance programme:
“When your income slashes, you must discover alternatives to afford insurance as it has been necessitated by the law. Luckily, the state’s Low Cost Auto Insurance Program is cost-effective and offers me the liability cover.”
