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The Importance Of Understanding Low Cost Auto Insurance For Low Income Earners

Low income earning citizens according to American standards have had a hard time accessing Low Cost Auto Insurance for a while but the federal government has come up with some form of reprieve. The minimum liability auto insurance laws implemented in states all over America is aimed at making sure that low income earners are able to access auto insurance. The minimum liability law dictates the lowest possible auto insurance cover that an individual can purchase in order to travel on the road.

Sometimes referred to as third party insurance, minimum liability policy is meant to cover physical injury and damage to property in the event of an accident to which the individual is at fault. In order to reduce the cost of auto insurance, personal injury cover is removed from this cover and is set as optional for the driver. This is however not the case in every state. Some states have personal injury cover as mandatory for every driver on the road. The minimum liability insurance cover is also not the same in every state though it is entrenched in the law in all. What is different is the rates set for individual physical injury, physical injury per accident and property damage.

The Low Cost Insurance Program imposed in most states is not just available to anyone who chooses to take it up. There are a number of factors that must be evident in order for you to qualify. The common factors among the states are:

* Must be above 19 years of age.

* Must have a minimum driving experience of 3 consecutive years.

* In that time you must have a stainless driving record. This means no traffic violations of any kind.

* Must qualify for the income requirements for the state that should rate you as a low income earning citizen.

* Lastly, the vehicle that is to be insured should meet the maximum requirements set by the state. For instance if you are in California, you will not qualify if the value of your vehicle is above $2,000.

Once you are seen to fit the requirements for the Low Cost Auto Insurance program of the state, you can move on to paying for the auto insurance cover. Depending on the availability of your resources, you can either pay for the whole year upfront or abide to the payment plan set by the state. For instance in California you can either pay $125 and settle the rest within 30 days. Another option in the same state is to pay a down payment of $100 and pay a set amount every 2 months over a 6 months period. There are various other options available when it comes to payment of this insurance since it is meant to be comfortable for a low income earner. The biggest drawback to the insured in this program is that they do not have the liberty to select the insurance firm to provide them with these services. The state does this for you. The best thing is that you have Low Cost Auto Insurance.

If you are looking to enlist in this program, enter your Zip at the top of this page and we will direct you to where you can receive these services in your area.