Most states require drivers by law to possess automobile insurance. Typically, this mandated insurance only extends to liability. Nevertheless, this is a significant expense for the average family. In fact, a recent industry study demonstrated that low-income households spend 30 percent of that income on car insurance alone. >Recently, states have begun to recognize the inherent problems in this system. One of the solutions in states like California and New Jersey is government sponsored car insurance. In other words, these states view insurance as a need, just like food and medical care, and provide assistance for it to those families who cannot afford it. Throughout the country, the legal minimum for bodily injury is $10,000. More than 90 percent of all claims, however, are far less than that amount. Since the local governments are trying to break even on these programs, rather than turn a profit like a conventional insurer, they can use this information to limit costs. The average cost of car insurance is $3 per day, but through a government sponsored car insurance program, it is only $1 per day. Early on, there was some concern that such programs could hurt the insurance industry. That hasn't occurred. One reason is that participation in these programs is still low. However, further research has showed that the insurance industry is not losing much money on these low-income customers. In fact, insurance companies tend not to make much profit on liability-only policies despite the different between $1 and $3 per day. This is because states have some advantages that the insurers cannot have. There are 45 states mandating insurance, and after early modest success in California and New Jersey, many of them have begun the process of instituting similar programs. Most states, however, do not have them yet. If a driver believes they would qualify, they should call the department of insurance for their state or visit the website. Even if a state doesn't yet have such a program, it is still worth calling the department of insurance. All states recognize the problem, and many of them do have some temporary resources in place to help families facing the greatest difficulties.