UPDATED: Dec 5, 2019

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Written By: Sara RouthierReviewed By: Joel OhmanUPDATED: Dec 5, 2019Fact Checked

As the economy in the United States continues to claim unemployment at eight percent nationwide the percentage of people unemployed in the State of California is much higher. According to statistics the unemployment rate in the state is as high as fifteen percent.

With the state’s high rate of unemployment people are looking in more detail at the monthly expenses and one of the expenses that people are trying to cut back on is their cheap car insurance. As expenses get more difficult to pay there is an increasing number of drivers in the State of California going without insurance. California is one of many states that has uninsured drivers which reached a staggering thirty percent at one point.

Even though it is illegal to drive without cheap car insurance more drivers are taking the risk of traffic violations or the suspension of their license. The State of California is aware of this and has realized that drivers are not driving with cheap auto insurance because they simply cannot afford it. Even the California Highway Patrol is aware of the issue.

This is the primary reason the department of insurance in the State along with local and state-wide authorities are working together to teach drivers about cheap auto insurance. With the new program more drivers are able to get affordable car insurance and drive legal.

According to officials from the City of San Francisco, California’s cheap auto insurance plan supplies basic liability insurance the state requires. However, it does so at a drastically reduced price. For example, a driver who qualifies for the program would be able to get coverage for their vehicle at $234 dollars a year for $15,000 worth of coverage per individual.

Also, they would get $20,000 per accident for bodily injury and $4,000 for property damage liability. Although the figures are lower than your average coverage this help many drivers to have cheap car insurance and be legal at the same time.

However, not all drivers qualify for the program. Under state law drivers can qualify for cheap auto insurance if they are at least eighteen years of age and have a good driving record. They have to have a vehicle that is priced less than $22,000 too.

Drivers who hope to qualify for the cheap auto insurance plan must meet certain earnings restrictions based on their yearly tax returns. A family of two cannot make more than $38,225 and a family of four cannot earn more than $58,625.

Previously the earnings where based on a payment stub from their employer. Since the State of California found many where earning more than the amount to qualify through other earnings such as child support payments, earnings from self employment, or money from dividends, the state changed the policy to a yearly tax return instead of a recent pay-stub.

The cheap auto insurance plan is catching on though. The amount of people enrolling for the vehicle protection tripled in the year 2010. In the city of San Francisco the amount of uninsured drivers was reduced from twenty-one percent to less than fourteen percent.

The hope for the state is that by passing on the information about the cheap car insurance plan is the numbers will continue to fall. The State of California is hopeful about the program too since the costs for uninsured drivers is in the hundreds of millions for the state.

California is not the only state trying to deal with the issue of uninsured drivers. According to statistical data, each state across the US has many drivers without cheap automobile insurance increasing each year.

As long as the economy does not improve soon it is questionable if the numbers will fall nationwide. The good news is there are other states which are getting programs that is comparable to the State of California’s cheap car insurance program.

Drivers that are considering to forsake insurance to pay other bills should check with their state to determine if there is a cheap auto insurance program available. The majority of states view offering cheap auto insurance for qualified drivers as a more sensible choice.

It is better than having to deal with the legal situation with a driver with no car insurance that get into an accident. And the result is higher costs for the state which officials in states today are trying to find ways to balance the budget.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Written by Sara Routhier
Director of Outreach

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florid...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Dec 5, 2019

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.