Auto Insurance for the Poor - Do You Really Get What You Pay For?

In the state of California alone, it is estimated that more than 3 million drivers drive without insurance. Some are drivers that have dropped coverage their cars are registered, but most are flouting the law simply because they cannot afford to comply.

If you take even a cursory look at insurance rates in many urban areas, you can get a quick picture of the problems facing many people. Take, as an example, an area of South-Central, Los Angeles, where the annual minimum insurance premium for a driver with a decent record comes to almost 1/7th of their annual income. The situation is not significantly better in many other urban areas.

Unfortunately, some well-meaning legislation to try and address the iniquitous position that many poor drivers find themselves in merely have an adverse effect on other drivers.

For example, in New Jersey, a new programme, know colloquially as 'the dollar-a-day' programme, was instigated in order to afford coverage to low-income motorists. It means that such motorists may drive legally without carry property-damage liability insurance.

The scheme, formally known as the Special Automobile Insurance Policy (SAIP), has allowed more than 22,000 drivers to take to the roads of New Jersey holding policies that cover only hospitalisation for their own injuries. This means that when a SAIP-covered driver hits another car, the accident victim and their insurance company alone are faced with the bill.

The victim can choose to sue, but, as logic would dictate, a driver holding such a policy as the SAIP has very few assets to start with, and such a strategy is unlikely to meet with too much success.

The policy has been heavily criticised for its latent unfairness, placing the financial burden on the few, whilst not significantly helping poor drivers either.

The problem is that, if the victim does decide to pursue litigation, such action can continue for years, thereby possibly mortgaging future earning power. Every action has its consequences. As a result, more insurance professionals are dissuading lower-income motorist from such schemes.

If you're considering on getting new auto insurance or looking to change a plan you are currently on consider these aspects heavily. You may also want to see what options are avaialble to you by using a number of different specialty websites that look at ways to help lower income people achieve coverage. These can help save you time, money and headaches in the long-run.

If you're stuck and need some help finding good information online try using InsureThePoor.com for finding the right local insurance information you need right away to help you fulfill your insurance needs.