About 20 years ago, in some US states, buying insurance was the arbitrariness, meaning that car owners can buy it or not. But the situation is no longer at present, for vehicle owners, purchasing insurance was enforcement before the car could circulate on the road legally.
To meet that demand, many people buy only the minimum of insurance which US law proposed. However, someone thought that this minimum was still beyond of their abilities.
In this situation, some state governments had intervened to ensure an affordable cost, suitable for the poorest. One of the “lenient” governments was California.
Summary of Cheap Insurance For People in California:
Cheap Insurance Program For People in California had the official name is the California Low Cost Automobile Insurance Program (CLCA), has been applied since 2000, firstly for two large locality Los Angeles County and San Francisco city.
Until 2006, it has been applied to some other counties, including Orange County with the “capital” of the Vietnamese refugees as Little Saigon. More than a year later, in late 2007, the program was expanded to all counties of California.
Although setting up by California Congress, but the CLCA is not a social program funded by money of taxpayer. Its activities were independence, based on the amount of contributions from the insurance buyer, business on a principle of little profit or no profit, but without funding from the public funds. Obviously, with the limited receipts, CLCA can only provide very limited benefits, barely enough to meet the demands of law only.
In addition, car owners have to be a fairly good driver and in some of relatively poor people in America. What is “fairly good” and ” relatively poor “? The program will have specific definitions. But firstly, please talk about the price and benefits of the program:
Insurance rates vary depending on each other county, with a minimum of $ 225/year/car, and the highest was $ 338/year/car. If you lived in Little Saigon, Orange County, you would be the one to bear the highest price, equal to people in Los Angeles. Comparing with 5 years ago (2010), the people of Orange County was upgraded (from $ 295 in the past,up $ 338 at present), and Los Angeles people degraded (from $ 368 to $ 338). Maybe noone likes this upgrading type, and degrading sure nobody has to be sad.
Benefits by CLCA provides very limited. With above rates, you only buy one-way insurance (liability only) to compensate for opponent when you are at fault. What about your car? You must take care. Though you are ready,you can not buy a second dimension (collision): CLCA sells insurance only one way, only to meet the requirements of California law. Want to buy more, only half-way insurance (uninsured Motorist) and a bit of healing money not to exceed $ 1,000. Want tobe insured complete 2-way (full coverage) with all benefits like towing (towing), roadside emergency (Roadside Assistance), you must sign a contract with another company.
When acting on behalf of you to compensate for the opponent when you have errors (liability), CLCA has only one level: up to $ 10,000 if there is a victim, up to $ 20,000 if there are more victims, and compensation for repairing car maximum $ 3,000. Admittedly, this is a very small numbers. If victim has seriously injured, or physical damage is large, exceeding the maximum level of above payments, you will be the one to take care of the rest by your money or borrow money. If not, the opponent lawyer can sue you in court.
Actually it’s just anxiety of those having separately assets. If the driver is poor, working for minimum wage, you probably have nothing to worry about: how much insurance compensate, lawyer will advise your opponents get that amount.
Because of the limited compensation at a minimum level, the insurance companies involved CLCA have not spend large sums of money, so they can keep low premium prices for the poor drivers.