Auto Insurance for Low-Income Individuals (How to Save)

Auto insurance for low-income individuals offers the same coverage and rates as for other drivers. Income isn’t a factor used to calculate auto insurance, although three states do offer low-income coverage for drivers who qualify. Find cheap car insurance for low-income individuals by shopping around, taking advantage of discounts, and lowering coverage.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Nov 24, 2021

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Things to Remember

  • Most states and companies don’t offer special car insurance for low-income drivers
  • Three states offer low-income auto insurance
  • Drivers can lower coverage and take advantage of discounts to lower auto insurance rates

Auto insurance can be very expensive, and the best auto insurance companies out there offer drivers ways to save on coverage.

While special auto insurance for low-income individuals isn’t generally available, a few states offer low-income car insurance if drivers meet certain requirements.

Before you buy auto insurance for low-income individuals, shop around to find the best deal. The best low-income car insurance will vary since each company will offer different rates.

Enter your ZIP code for free auto insurance quotes for low-income individuals from companies in your area.

Is auto insurance available for low-income individuals?

Can you get low-income auto insurance for seniors? What about cheap car insurance for low-income single mothers?

Unfortunately, your income isn’t a factor when it comes to auto insurance. As a result, car insurance companies don’t offer lower rates based on your income.

However, low-income drivers can save money in several ways. One way to save is to re-evaluate how much coverage you need.

Low or liability-only coverage is cheaper than full coverage. If your car isn’t worth much money or you can afford to pay for repairs yourself, consider reducing your coverage.

This table shows the average auto insurance rates based on coverage type.

CompaniesAverage Annual Auto Insurance Rates for High CoverageAverage Annual Auto Insurance Rates for Low CoverageAverage Annual Auto Insurance Rates for Medium Coverage
Allstate$5,139.02$4,628.03$4,896.81
American Family$3,416.40$3,368.49$3,544.37
Farmers$4,494.13$3,922.47$4,166.22
GEICO$3,429.14$3,001.91$3,213.97
Liberty Mutual$6,356.04$5,805.75$6,058.57
Nationwide$3,505.37$3,394.83$3,449.80
Progressive$4,350.96$3,737.13$4,018.46
State Farm$3,454.80$3,055.40$3,269.80
Travelers$4,619.07$4,223.63$4,462.02
USAA$2,667.92$2,404.11$2,539.87
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Most states require drivers to carry at least a minimum amount of liability auto insurance to drive legally.

While it might be tempting for low-income drivers to skip those insurance payments, it can wind up costing you more in the long run.

According to the Insurance Information Institute, uninsured drivers can face fines, driver’s license suspension, jail time, and even higher rates when they do decide to get auto insurance.

Is there special government auto insurance for low-income drivers?

Even though auto insurance companies don’t offer breaks for low-income drivers, some states do.

What is government auto insurance? Hawaii, New Jersey, and California offer state-funded auto insurance for certain drivers.

However, coverage is usually extremely low, and may not give you the insurance you need. Drivers also have to meet the requirements to qualify for the program.

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What are other ways low-income drivers can save on auto insurance?

Drivers are always looking for ways to save money on auto insurance. Other than lowering your coverage, there are some other ways for you to lower your rates.

First, take advantage of car insurance discounts. Insurance companies offer many discounts based on your driving record, policy type, and safety features on your car.

This table shows you common auto insurance discounts from top companies. If the discount amount is known, it is listed.

Auto Insurance Discounts By Company
Auto Insurance DiscountsAllstate (%)American Family (%)Farmers (%)GEICO (%)Liberty Mutual (%)Nationwide (%)Progressive (%)State Farm (%)Travelers (%)USAA (%)
Adaptive Cruise ControlN/AN/AN/AN/A5N/AN/AN/A
Adaptive HeadlightsN/AN/AN/A5N/AN/AN/A
Anti-lock Brakes5555
Anti-Theft25202515
Claim Free2610152312
Continuous CoverageN/AN/AN/A15N/A
Daytime Running Lights155N/A
Defensive Driver105105103
Distant StudentN/A107
Driver's Ed10N/A101583
Driving Device / AppN/A30402050305
Early SigningN/A8N/A1012
Electronic Stability ControlN/A5N/AN/AN/A
Emergency DeploymentN/AN/AN/A25N/AN/AN/AN/AN/AN/A
Family LegacyN/AN/AN/AN/AN/AN/A10
Family PlanN/AN/AN/A25N/AN/AN/AN/A
Farm VehicleN/AN/AN/AN/AN/AN/AN/A
Federal EmployeeN/AN/A810N/AN/AN/AN/AN/A
Forward Collision WarningN/AN/AN/AN/A5N/AN/AN/A
Full PaymentN/A$5N/AN/A7.5N/A
Further EducationN/AN/AN/A1015N/AN/AN/A
Garaging / StoringN/AN/AN/AN/AN/AN/AN/A90
Good CreditN/AN/AN/AN/AN/A
Good Student1522.5102583
Green VehicleN/A5N/A10N/AN/AN/A10N/A
HomeownerN/AN/Axx535N/A
Lane Departure WarningN/AN/AN/AN/AN/AN/AN/A
Life InsuranceN/AN/AN/AN/AN/AN/AN/AN/A
Low Mileage30
LoyaltyN/AN/AN/A5N/AN/A
MarriedN/AN/AN/AN/AN/A
Membership / GroupN/AN/AN/Ax107N/AN/AxN/A
MilitaryN/A154N/AN/AN/A
Military GaragingN/AN/AN/AN/AN/AN/AN/AN/AN/A15
Multiple Policies1029102010121713
Multiple Vehicles25102010208
New AddressN/AN/AN/AN/A5N/AN/AN/AN/AN/A
New Customer / New PlanN/AN/AN/AN/AN/AN/AN/AN/AN/A
New GraduateN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Newer VehicleN/AN/A401012
Newly LicensedN/AN/AN/AN/A5N/AN/AN/AN/AN/A
NewlywedsN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Occasional OperatorN/AN/AN/AN/AN/AN/AN/AN/AN/A
OccupationN/A1015N/AN/AN/A
On-Time PaymentsN/AN/AN/AN/AN/AN/AN/A15N/A
Online ShopperN/AN/AN/AN/AN/AN/A7N/AN/AN/A
Paperless / Auto BillingN/A$30$233
Paperless DocumentsN/AN/A5$50N/AN/AN/A
Passive Restraint4020x40
Recent RetireesN/AN/AN/AN/A4N/AN/AN/AN/AN/A
Safe DriverN/AN/A15N/A3531152312
Seat Belt UseN/AN/AN/A15N/AN/AN/AN/AN/AN/A
Senior DriverN/AN/AN/AN/AN/AN/AN/A
Stable ResidenceN/AN/AN/AN/AN/AN/AN/AN/A
Students & AlumniN/AN/A107N/AN/AN/AN/A
Switching ProviderN/AN/A10N/AN/AN/AN/A
Utility VehicleN/AN/AN/AN/AN/AN/AN/A
Vehicle Recovery1535255
VIN EtchingN/AN/AN/A5N/A
VolunteerN/AN/AN/AN/AN/AN/AN/AN/AN/A
Young DriverN/AN/AN/AN/AN/AN/AN/A$75
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Bundle your discounts for even great savings.

Drivers can also save money on auto insurance by keeping a clean driving record. Drivers with accidents, tickets, and DUIs on their driving record will pay much higher rates than drivers with a clean record.

You can also consider participating in a telematics program. Telematics monitors your driving behaviors, and many auto insurance companies offer discounts based on how well you score.

Auto Insurance for Low-Income Individuals: The Bottom Line

Although auto insurance companies for low-income individuals don’t exist, drivers can save money by comparing low-cost auto insurance quotes and using discounts to lower rates.

For drivers in certain states, government car insurance is also available if drivers meet certain requirements.

Shop around to find the most affordable auto insurance for low-income individuals. Compare quotes from multiple companies to find the best coverage with the lowest rates.

Enter your ZIP code now to compare auto insurance rates for low-income individuals from companies near you for free.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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