With the developments and the rise of industrialization there has been a massive increase in the number of cars on the roads, the number of cars in the United States has been much higher than the other countries as the lack of support from the government for public transportation. This changed the importance of driving from a privilege for the rich, wealthy and well-off families, and has moved towards the necessity for all the people of the country. This has made it very difficult for these people as the distance from residence and workplace are increasing as each year’s passes by, the average distance used to be in the single distance digits during the 1960s and have now crossed the 100 miles in this decade. Covering these distances on private taxis are very expensive as sometimes may lead to the loss of more than half of monthly payments on transportation. To increase the lifestyle of low-income families, many state governments in the United States decided to start car insurance low income under their new schemes to develop the backwards people of the community.
There are currently only three states providing low cost Auto insurance for low income families, these states are California, New Jersey and Hawaii. Let’s discuss about this policy for Auto insurance for low income families
All the people who don’t make it to the average amount set for basic needs by the governors are eligible for the program. This is about 33,000$ for most of the Californian cities and has the highest amount at 60,000$ for some areas of Los Angeles. People with good and clean driving records are always given priority first, so it is better to have a clean record. This policy is also not applicable to younger drivers; only drivers who are aged above 18 years can apply. The applicant needs to have a valid license and also should own a car which is cheaper than 25,000$.
Applicants who fall into the mentioned category can have their insurance bill capped at 388$ maximum. With this program, the user can get up to a maximum of 30, 3000$ under different categories based on the conditions.
The state of Hawaii
Hawaii doesn’t have a policy for car insurance for bad driving records, but their insurance amount has always been in the range of 300-460$ per year from the start. But people with permanent disability have a free insurance policy which covers almost all the auto insurances.
New Jersey and its policy for Auto insurance for low income families
Almost all the people with low income can apply for this policy if you own a car and doesn’t make it to the amount set by the government. People qualified for this can pay up to 360$ per year and receive benefits that are better than the other two states, the new jersey policy for Auto insurance for low income families covers up to 250,000$ in damages and health payments caused from a crash.