The laws in 49 states require drivers to carry automobileliability insurance, yet millions of Americans drive without it.Why? Auto insurance is too expensive, at least for low- andmoderate-income drivers. Given the other demands on their financialresources, auto insurance is a luxury they can't afford.

“Uninsured Drivers: A Societal Dilemma in Need of a Solution,”a March 2014 report by the Consumer Federation of America (CFA),quotes an Ohio judge who recites a familiar trope: “If you have tochoose between food on the table and [required auto] insurance,people are going to put food on the table…People live month tomonth and they just don't have the money.”

But there are reasons to be skeptical of the notion that autoliability insurance is unaffordable for low- and moderate-incomeconsumers. First, auto liability insurance isn't that expensive.The National Association of Insurance Commissioners calculates thatin 2010, the average annual liability insurance expenditure pervehicle in the U.S. was $484, with averages for individual statesranging from $805 in New Jersey to $250 in North Dakota. Autoliability coverage can cost considerably more in some urbanareas.

CFA cites a California program in which low- and moderate-incomeresidents with good driving records can purchase liability coveragefor $350 or less as a success. Instead, the California programprovides another reason to think that lack of affordable coverageis not the main reason some drivers don't buy insurance.

Launched in 2000, the California Low Cost Automobile InsuranceProgram (CLCA) has attracted only a handful of customers, despiterates well below the national average and an aggressive $1.4million outreach campaign targeting the roughly three millionuninsured California drivers.

In March, CLCA officials reported that approximately 567,500Californians expressed interest in the program in 2013, but only51,755, or 9%, were eligible. Of those, 28% visited a producer toapply—14,251 individuals, of whom 10,153 actually purchased apolicy.

CLCA officials suggest that the program's “good driver”requirements are too stringent. But you can qualify if you're atleast 19 years old, have been continuously licensed with no morethan one moving violation or at-fault accident during the pastthree years, are not responsible for an accident that killed orinjured someone during the past three years, and haven't beenconvicted of any driving-related felonies or misdemeanors.

And CLCA's income eligibility requirements seem generous:household income must be less than 250% of the federal povertylevel and the vehicle worth less than $20,000. A single L.A. Countyresident with an annual income under $28,725 pays a yearly premiumof $338 for CLCA liability coverage. A driver in a four-personhousehold with annual income of up to $58,875 would pay the sameamount.

Low-cost private insurance is available to good drivers. Thosewith poor driving records will pay more in the private market tocompensate for the heightened risk they present. But drivers whofail to carry minimum auto liability insurance should be encouragedto re-examine their spending priorities.