To reduce the risk of motorists driving without adequate auto insurance, the government now sponsors auto insurance plans for those who might have difficulty in obtaining sufficient coverage from traditional insurers. While some motorists can be refused insurance because of a poor driving history, multiple accidents or driving under the influence of drugs and alcohol, there are some vehicle users who are penalized just because they fall into a low income bracket.
Studies by the National Association of Independent Insurers showed that some low income families where spending more than 30% of their annual household budget on auto insurance costs. In many instance, it was found that families were sacrificing basic essentials such as food or heating just to keep their vehicles on the road. Almost understandably, some families chose to use their vehicles illegally when budgets were stretched beyond reasonable means.
Government sponsored auto insurance plans are provided to help those who cannot afford or find cover from traditional insurance companies. Although most policies offered will only cover the basic minimum levels of mandatory insurance cover for an individual state, it is still possible for motorists to find affordable cover through these excellent schemes.
The basic levels of coverage are provided as a means of keeping costs to an absolute minimum. Whereas the current national average auto insurance policy costs somewhere in the region of $5 per day, insurance provided on a government sponsored auto insurance plan can work out significantly cheaper and in many states, coverage can be provided for approximately $1 per day.