Yes, it’s possible to obtain government car insurance.
First of all, what is government car insurance?
In the state of an accident, all parties must be protected by some kind of insurance, it’s the law. Actually, every state in U.S. requires that drivers carry some kind of car insurance.
Moreover, every state has their own laws and ways when it comes to the car insurance, but it is a fact that it is illegal to drive without car insurance. Unfortunately, car insurance can be quite pricey and in order to drive, some people are willing to give some necessities in their life such as better food because having a car is part of the job requirement.
And in fact, most low-income households in U.S spend a large amount of money on car insurance. While, these program for government auto insurance are not widely advertised, they are still available.
Do I qualify for government car insurance?
Well, it all depends on the state you live in. Typically, it should cover all the people who need it the most. For example, if your car insurance rate is abnormally high and you can’t keep up with the rates, you’ll most likely qualify for government car insurance.
One of the metrics used to decide if someone is eligible for government auto insurance is a poverty income statistics that is published each year by the federal government. Second metric they are looking at is the family size. For example, a family of three needs to have a lower income that a family of six to be eligible for the insurance.
As I am writing this, California, Hawaii, and New Jersey have insurance programs for the low-level income families.
New Jersey’s Special Automobile Insurance Policy
If you are living in New Jersey and you are a low-level income citizen, you might be in luck. Their insurance program is called SAIP as Special Automobile Insurance Policy and their main goal is to help provide auto insurance for low-level income citizens.
You can apply for SAIP with most insurance agents in the state of New Jersey.
To apply for SAIP you must:
- be enrolled in Federal Medicaid with Hospitalization.
- valid drivers’s license.
Money talk, so:
- $360 per year if you pay up front.
- $365 per year if you pay in two installments.
If a serious injury occurs (brain or spinal cord injury) you will be covered up to $250,000. On the other hand, SAIP does not provide you with liability insurance coverage or any other medical costs.
California’s Low-Cost Auto Insurance Program
CLCA, California’s Low-Cost Automobile Insurance Program was made part of the law in 1999 and its main goal is to provide with a liability car insurance at rates that are affordable to the low-level income families.
To apply for CLCA, you must:
- meet certain income requirements.
- outstanding driving record.
- at least 19 years of age.
- own a car that is valued at $20,000 or less and with no unpaid loans.
Although annual premiums may vary from country to country, but the highest premium is capped at $388.
Tell me the coverage limits:
- $10,000 for bodily injury or death per person.
- $20,000 for complete body injury or death when multiple people are involved.
- $3,000 for car damage.
Hawaii’s Low-Cost Disability Auto Insurance Program
If you live in the Hawaii and you have any sort of permanent disability you might be eligible for their low-cost auto insurance. Usually, it involves a direct cash payment.
Government car insurance vs. normal auto insurance
Since government sponsored auto insurance is relatively cheap, the government does not provide coverage the way a regular auto insurance company would. For example, in some states they do not provide medical coverage for the driver, just for the passengers.
As I already said, government insurance is cheap and the people qualify for this sort of car insurance have free health insurance as well, there is no need for excess coverage. This also helps keep the premium down to an affordable level.
All in all, if you can afford it, go with the regular car insurance
How can I find afforadble traditional insurance?
If you look around the internet, there are dozens upon dozens of websites that offer affordable insurance policies and they can get a premium that is not too much higher than a government car insurance plan.
Moreover, some insurance companies offer a ton of different discounts depending on the driver’s situation.
For example, an insurer can get a discount if they are buying online, if they are good students and have good grades, if they are a military veteran, if they are a homeowner, etc.
Whatever the case may be, it is important that a person reads all there is about their potential insurance company.
Should I buy government car insurance?
If you are in the low-level income group and you have no other options, then I would recommend you to buy government car insurance. For example, if a person has to pay $200 a month for auto insurance, most people won’t have the money to pay since that money could be spent on food. Unfortunately, it is illegal to drive without some minimal car insurance.
To sum it all up, while government insurance may not be the best insurance policy around, it is still available and a person can save a ton of money, stress and potential headaches in the long run.