California Poizner’s Low-Cost Auto Insurance plan

As the economy continues to weaken, there is news each week of people losing their jobs and homes. Most of us, however, don’t realize just how far the trickle-down effect of this reaches, including an area that is scary for every driver on the road: auto insurance.
Estimates are that hundreds of thousands of people across the country cancelled their auto insurance in 2008. In fact, according to the Insurance Research Council, roughly eighteen percent of drivers in California are uninsured, and this number is expected to sharply increase, along with the number of people having financial difficulties.

Suggested Solution
In an effort to combat this problem, Steve Poizner, the insurance commissioner of California, has urged the public not to cancel their auto insurance. Instead, he has suggested that they opt for insurance through the California Low-Cost Automobile Insurance Program.

The Plan and More
The California Low-Cost Automobile Insurance Program is available to those with good driving records who have had no more than one at-fault accident or moving violation in the past three years. Applicants must also be 19 years or older, have a vehicle valued under twenty thousand dollars, and meet low-income requirements for the number of people in their family. The plan is slated to cost around $400 per year, with some people able to pay as little as $300 per year, depending on the county in which they live.
While this may not be the answer to the economic troubles the country faces, it could come as a big relief for millions of drivers. Whatever you do, don’t just cancel your insurance. Driving without insurance can lead to a suspension of vehicle registration and can lead to economic loss if there is an accident. Instead, check out the California Low-Cost Automobile Insurance Program, and see if it’s a good fit for you.