Public Auto Insurance

Public auto insurance is a viable alternative for those individuals who can not afford private auto insurance. There are many people who have vehicles that try to get by without purchasing auto insurance. If you own your own car need to know about the different kinds of car insurance policies that are available. Also, when you buy a car you should consider your auto insurance policy needs. Every state in the United States requires the owner of an automobile have some kind of liability car insurance. Some states now offer public auto insurance as do some provinces in Canada. Having basic auto insurance is also mandatory in Canada except for in Newfoundland and Labrador. Some provinces in Canada have a public auto insurance program while other provinces only offer private car insurance. The provinces that offer the public auto insurance are Manitoba, Quebec, British Columbia and Saskatchewan. Public auto insurance is the type that is a government owned and operated auto insurance program. Saskatchewan was the first province to have a public auto insurance program since 1945. Other provinces later created public auto insurance companies in Canada in 1971, 1973 and 1977.

In the United States the California Low-cost Automobile Insurance (CLCA) program first became available to the public in Los Angeles and San Francisco in the year 2000. By 2006 the public auto insurance program was expanded to San Bernardino, Orange, Fresno, San Diego and Alameda and has since been extended to other parts of the state. The California public auto insurance program (CLCA) insures drivers for up to $10,000 bodily injury and up to $20,000 property damage per accident and the state of California also provides up to $3,000 additional property damage per accident. The rates for public auto insurance are generally a lot less than for private auto insurance. In California the driver must be at least 19 years old and have had a driver’s license for at least 3 years before they can qualify for the CLCA public auto insurance program. The vehicle that the driver has can not be worth more than $20,000 to qualify for the insurance program and they can not have any convictions on their driving record. There are also certain income requirements that must be met. If you do not have auto insurance in California your vehicle registration is revoked.

The states of New Jersey and Maryland also have a type of public auto insurance program. In New Jersey, their state-run program is SAIP. To qualify for this public auto insurance program the individual has to first qualify for Federal Medicaid with hospitalization coverage. The state public auto insurance costs $365 a year to buy. The coverage is $250,000 in medical care coverage costs and $10,000 in death benefits. In Maryland the public auto insurance program is called MAIF. It has been in existence since 1972 and they began their public auto insurance program for residents who can not afford private auto insurance. The premium amount depends on certain factors that are determined by a questionnaire. There public auto insurance program provides a minimum of $20,000 per person who is injured with a maximum of $40,000 per accident with an injury. The property damage coverage is $15,000 per accident.

Some form of auto insurance is compulsory in almost every state in the United States. For instance, in New Hampshire they drivers must have liability insurance. In Virginia the residents are required to pay a $500 annual fee for each vehicle they own if they do not buy liability insurance. The penalties for not having auto insurance are different for each state and can include such things as being required to pay a substantial fine, having your license or registration revoked and in some states there is a penalty of possible jail time. In some states the license plates are removed from the vehicle if there is no insurance. Public auto insurance can help those who do not make enough money to purchase private auto insurance.

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