Californians Struggling to Afford Auto Insurance Have Options

LOS ANGELES, July 22 /PRNewswire/ -- With money tight and unemployment as high as it is in California, residents are looking to cut costs; even though allowing an auto insurance policy to lapse may seem like a tempting way to knock off a good chunk from the monthly bills, such a move could have dire consequences and may be more costly than automobile coverage itself. Having to pay out-of-pocket for an accident during an uninsured period could wind up being a much more painful financial hit. OnlineAutoInsurance.com would like to advise Californians that options are available that may help avoid the risks of driving uninsured.

One such option is a program made available by the California Department of Insurance (CDI), which could assist some drivers who lack the income to maintain traditional coverage. The California Low Cost Automobile Insurance (CLCA) program, which is now available throughout the state, helps secure California auto insurance for residents who have at least three years of being continuously licensed, live below specified income levels, use a car worth less than $20,000 and maintain a relatively good driving record. Interested drivers can answer a short set of questions on the CDI's website to determine if they are eligible.

Source: http://www.insurance.ca.gov

Drivers who qualify will be able to attain coverage at rates set for their respective counties. As of May 2009, the prices for the program's liability coverage ranged between $161 and $361. That compares pretty well to the most recent data released by the National Association of Insurance Commissioners, which estimated that the average cost for a liability policy in California in 2007 was $465. Drivers considering the program should note, though, that the discounted rates come with coverage levels lower than the already low state-required minimum coverage.

Motorists who may not qualify for this program or wish to get coverage exceeding the states liability limits have another option to find affordable coverage. With the large number of insurers that are available, taking the time to obtain and compare rate quotes from various carriers can lead to finding a cheap policy. Californians can visit http://www.onlineautoinsurance.com/california/ to get a quick, free quote comparison.

SOURCE Online Auto Insurance, LLC