Is government auto insurance an available option for you? There are no two ways about it -- auto insurance premiums can take a big chunk out of your budget. Average annual premiums vary by state, usually between $900 - $2500 per year.
For some people, this presents a serious challenge. Your car is a necessity, and all 50 states require that you are covered by an insurance policy while driving. If a quote from Geico or State Farm has left you feeling frustrated, you may want to look into government or low-income auto insurance.
In the following article, we'll dive into this topic, explain your options, and educate you on how government auto insurance works. Specifically touched on are….
Let's get started….
People living on modest incomes end up paying a comparatively high percentage of their income for insurance coverage. The same premium represents much less of a hurdle for wealthier people. This is where government programs come in.
Government auto insurance is a set of programs/policies sponsored by the federal government to assist lower income families and individuals. These programs attempt to level the playing field.
This assistance generally comes in two formats:
Each state has a slightly different set of insurance laws.
There are some eligibility requirements that one must meet in order to be qualified for these types of policies/plans. These vary state to state and you need to check with local authorities to be sure. But the criteria typically are:
The Americans with Disabilities with Act (ADA) was passed in 1990 and its aim is to fight discrimination against those with disabilities. Unfortunately, the ADA's effect on auto insurance is not terribly straightforward. But If you'd like to learn more check here or speak to an insurance agent.
Let's take a look at some of the states with the best-established government auto insurance programs.
To learn more check the CLCA website .
To learn more and see if you qualify you can check the State of Hawaii's Consumer Affairs website .
SAIP has you covered for emergency treatment after a car crash, and additional medical costs up to a limit of $250,000. While this program may not provide much in terms of comprehensive coverage, it's better than not having any protection. You can apply for SAIP with most insurance agents in New Jersey, and for more details check out the SAIP website .
Most major insurance companies will typically offer discounts to government workers or veterans. Sometimes these discounts can be quite substantial, so this is worth keeping in mind. In addition, there are some low-income insurance policies available from:
Insurance can cost a lot, and if you're on a tight budget you may find it unaffordable. If this is the case for you, it's good to know there are some low-income car insurance options available.
The ones mentioned above are the best known -- if you're not sure where to start give a local insurance agent a call and they should be able to help you. Be aware, however, that they may try to sell you their own policy. Just stick to your guns and remember:
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