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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Written by
Leslie Kasperowicz
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Reviewed by
Daniel Walker
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UPDATED: Nov 24, 2021
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- 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.
Table of Contents
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.
| Companies | Average Annual Auto Insurance Rates for High Coverage | Average Annual Auto Insurance Rates for Low Coverage | Average 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 |
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 | Allstate (%) | American Family (%) | Farmers (%) | GEICO (%) | Liberty Mutual (%) | Nationwide (%) | Progressive (%) | State Farm (%) | Travelers (%) | USAA (%) |
|---|---|---|---|---|---|---|---|---|---|---|
| Adaptive Cruise Control | N/A | N/A | N/A | N/A | 5 | ✗ | ✗ | N/A | N/A | N/A |
| Adaptive Headlights | N/A | N/A | ✗ | N/A | 5 | ✗ | ✗ | N/A | N/A | N/A |
| Anti-lock Brakes | ✗ | ✗ | ✗ | 5 | 5 | 5 | ✗ | 5 | ✗ | ✗ |
| Anti-Theft | ✗ | ✗ | ✗ | 25 | 20 | 25 | ✗ | 15 | ✗ | ✗ |
| Claim Free | ✗ | ✗ | ✗ | 26 | ✗ | 10 | ✗ | 15 | 23 | 12 |
| Continuous Coverage | ✗ | ✗ | ✗ | ✗ | N/A | N/A | ✗ | N/A | 15 | N/A |
| Daytime Running Lights | ✗ | ✗ | ✗ | 1 | 5 | 5 | ✗ | N/A | ✗ | ✗ |
| Defensive Driver | ✗ | ✗ | ✗ | ✗ | 10 | 5 | 10 | 5 | 10 | 3 |
| Distant Student | ✗ | ✗ | ✗ | ✗ | N/A | 10 | ✗ | ✗ | 7 | ✗ |
| Driver's Ed | ✗ | ✗ | ✗ | ✗ | 10 | N/A | 10 | 15 | 8 | 3 |
| Driving Device / App | ✗ | ✗ | N/A | ✗ | 30 | 40 | 20 | 50 | 30 | 5 |
| Early Signing | ✗ | ✗ | ✗ | ✗ | N/A | 8 | ✗ | N/A | 10 | 12 |
| Electronic Stability Control | ✗ | ✗ | ✗ | N/A | 5 | ✗ | ✗ | N/A | N/A | N/A |
| Emergency Deployment | N/A | N/A | N/A | 25 | N/A | N/A | N/A | N/A | N/A | N/A |
| Family Legacy | N/A | ✗ | N/A | ✗ | N/A | N/A | ✗ | N/A | N/A | 10 |
| Family Plan | N/A | ✗ | ✗ | N/A | N/A | 25 | N/A | N/A | N/A | N/A |
| Farm Vehicle | ✗ | N/A | ✗ | ✗ | N/A | N/A | N/A | N/A | N/A | N/A |
| Federal Employee | N/A | N/A | ✗ | 8 | 10 | N/A | N/A | N/A | N/A | N/A |
| Forward Collision Warning | N/A | N/A | N/A | N/A | 5 | ✗ | ✗ | N/A | N/A | N/A |
| Full Payment | N/A | ✗ | ✗ | ✗ | $5 | N/A | ✗ | N/A | 7.5 | N/A |
| Further Education | N/A | N/A | N/A | ✗ | 10 | 15 | N/A | N/A | ✗ | N/A |
| Garaging / Storing | N/A | N/A | ✗ | N/A | N/A | N/A | N/A | N/A | ✗ | 90 |
| Good Credit | ✗ | ✗ | N/A | N/A | N/A | ✗ | ✗ | ✗ | N/A | N/A |
| Good Student | ✗ | ✗ | ✗ | 15 | 22.5 | 10 | ✗ | 25 | 8 | 3 |
| Green Vehicle | ✗ | N/A | 5 | N/A | 10 | N/A | N/A | N/A | 10 | N/A |
| Homeowner | N/A | N/A | x | x | ✗ | 5 | ✗ | 3 | 5 | N/A |
| Lane Departure Warning | N/A | N/A | N/A | N/A | ✗ | ✗ | ✗ | N/A | N/A | N/A |
| Life Insurance | ✗ | N/A | N/A | N/A | N/A | ✗ | N/A | N/A | N/A | N/A |
| Low Mileage | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ | ✗ | 30 | ✗ | ✗ |
| Loyalty | N/A | ✗ | N/A | ✗ | N/A | 5 | ✗ | N/A | N/A | ✗ |
| Married | N/A | N/A | N/A | N/A | ✗ | ✗ | ✗ | ✗ | N/A | ✗ |
| Membership / Group | N/A | N/A | N/A | x | 10 | 7 | N/A | N/A | x | N/A |
| Military | ✗ | N/A | ✗ | 15 | 4 | N/A | N/A | ✗ | N/A | ✗ |
| Military Garaging | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 15 |
| Multiple Policies | 10 | 29 | ✗ | 10 | 20 | 10 | 12 | 17 | 13 | ✗ |
| Multiple Vehicles | ✗ | ✗ | ✗ | 25 | 10 | 20 | 10 | 20 | 8 | ✗ |
| New Address | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
| New Customer / New Plan | N/A | N/A | N/A | N/A | ✗ | N/A | N/A | N/A | N/A | N/A |
| New Graduate | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
| Newer Vehicle | ✗ | N/A | ✗ | ✗ | N/A | ✗ | ✗ | 40 | 10 | 12 |
| Newly Licensed | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
| Newlyweds | N/A | N/A | N/A | N/A | 5 | N/A | N/A | N/A | N/A | N/A |
| Occasional Operator | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ✗ |
| Occupation | ✗ | N/A | ✗ | ✗ | 10 | 15 | N/A | N/A | ✗ | N/A |
| On-Time Payments | ✗ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 15 | N/A |
| Online Shopper | N/A | N/A | N/A | N/A | N/A | N/A | 7 | N/A | N/A | N/A |
| Paperless / Auto Billing | ✗ | ✗ | ✗ | N/A | ✗ | $30 | ✗ | $2 | 3 | 3 |
| Paperless Documents | ✗ | ✗ | ✗ | N/A | N/A | 5 | $50 | N/A | N/A | N/A |
| Passive Restraint | ✗ | ✗ | ✗ | 40 | ✗ | 20 | x | 40 | ✗ | ✗ |
| Recent Retirees | N/A | N/A | N/A | N/A | 4 | N/A | N/A | N/A | N/A | N/A |
| Safe Driver | N/A | N/A | ✗ | 15 | N/A | 35 | 31 | 15 | 23 | 12 |
| Seat Belt Use | N/A | N/A | N/A | 15 | N/A | N/A | N/A | N/A | N/A | N/A |
| Senior Driver | ✗ | N/A | ✗ | N/A | N/A | N/A | N/A | N/A | N/A | ✗ |
| Stable Residence | N/A | N/A | N/A | N/A | N/A | ✗ | ✗ | N/A | N/A | N/A |
| Students & Alumni | N/A | ✗ | N/A | ✗ | 10 | 7 | N/A | N/A | N/A | N/A |
| Switching Provider | N/A | ✗ | ✗ | N/A | 10 | N/A | ✗ | N/A | N/A | N/A |
| Utility Vehicle | ✗ | N/A | ✗ | ✗ | N/A | N/A | N/A | N/A | N/A | N/A |
| Vehicle Recovery | ✗ | ✗ | ✗ | 15 | 35 | 25 | ✗ | 5 | ✗ | ✗ |
| VIN Etching | N/A | N/A | ✗ | N/A | 5 | ✗ | ✗ | N/A | ✗ | ✗ |
| Volunteer | N/A | ✗ | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Young Driver | N/A | N/A | N/A | N/A | ✗ | N/A | ✗ | N/A | N/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.