Drivers that cannot afford current Nevada car insurance rates may soon find themselves with a new option. The state’s assembly has decided to implement a new pilot auto insurance program that would only be available to individuals that are at or below 250 percent of the federal poverty line, according to the Insurance Journal.
To qualify, a household’s annual income would be around $27,000, according to the Department of Health and Human Services. That level would be raised by approximately $9,500 for additional household members.
Current state laws require drivers to have minimum insurance coverage of $15,000 per person and $30,000 for two or more people per accident for bodily injury. They are also required to carry another $10,000 in property damage coverage.
Changes to current requirements
Under the new bill, all three of these amounts would be lowered significantly, possibly resulting in car insurance low cost quotes to those that are eligible for the plan. In addition to the poverty requirement, anyone who wants to enroll in the program cannot have a vehicle valued at more than $20,000.
Participants would have the option of paying the premium for the entire year up-front, or simply putting a low down payment and making follow-up payments throughout the year. The up-front cost may be as low as 15 percent of the total policy.
Participants must also have three consecutive years of licensed driving experience and have a relatively clean driving record.
The state of California has been running a similar program for close to a decade and the Nevada legislation is almost identical. In 2009, close to 7,500 Golden State drivers were covered under this program.
How it will be paid for
The new Nevada insurance plan would be funded through a 50-cent fee that will be attached to all car insurance policies in the entire state. Participants would then be matched up with a provider and the state insurance commissioner would determine the premiums for each driver.
Where it will be offered
In its initial roll-out, the program would only be offered in the state’s most populated counties. Drivers must keep their cars in a garage and the county’s population must be at least 400,000 people.