Auto insurance can be quite high for families and individuals
Government car insurance programs for high-risk drivers
As important as insurance coverage is on our roads, the cost of auto insurance can be quite high for families and individuals. When you combine the cost of monthly premiums, deductibles, and mandatory minimum coverage, many motorists struggle to maintain sufficient coverage while driving.
The problem is even worse for high-risk drivers. If you’re a teenager, have a tainted driving record, or have been convicted of a DUI; you’ll be categorized as a high-risk driver. Such drivers are viewed as being more likely to cause accidents on our roads. As a result, auto insurance companies will hike their premiums and coverage limits, making insurance very expensive for those affected.
Government car insurance programs help subsidize this cost and increase accessibility to insurance coverage.
How Government auto insurance programs work
Government car insurance programs are essentially state-run programs that subsidize the cost of coverage for families and individuals. These programs are run at the state level because each state will have differing requirements when it comes to auto insurance. Furthermore, costs vary significantly from one state to another.
The main purpose of a government program is to reduce the number of uninsured persons on the road. Because of skyrocketing auto insurance rates, many people (especially high-risk drivers) are compelled to drive without insurance coverage. This ends up causing significant risks on our roads.
Government insurance programs provide lower rates for low-income families, high-risk drivers, and other persons who express financial need. These programs work by creating a pool of premiums that participants will pay into each month. When a person makes a claim, their compensation will come from this pool of funds to cover the cost of the accident.
Government Auto insurance policies will vary by state
Each state will determine limits of liability for their public auto insurance policies. Eligibility may also vary, so it’s important for high-risk drivers to research available options in the market. For example, Maryland’s public auto insurance program is designed for those who are unable to afford private insurance. It offers liability coverage of at least $20,000 (per person bodily injury) and at least $15,000 for property damage.
Part of the criteria for eligibility will be the value of your vehicle. Most public policies only cover vehicles valued at $20,000 and below. Furthermore, there may be limitations in medical coverage for the driver.