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.
Free Auto Insurance Comparison
Secured with SHA-256 Encryption
UPDATED: Nov 24, 2021
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
- 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.
|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|
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.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
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|
|Daytime Running Lights||✗||✗||✗||1||5||5||✗||N/A||✗||✗|
|Driving Device / App||✗||✗||N/A||✗||30||40||20||50||30||5|
|Electronic Stability Control||✗||✗||✗||N/A||5||✗||✗||N/A||N/A||N/A|
|Forward Collision Warning||N/A||N/A||N/A||N/A||5||✗||✗||N/A||N/A||N/A|
|Garaging / Storing||N/A||N/A||✗||N/A||N/A||N/A||N/A||N/A||✗||90|
|Lane Departure Warning||N/A||N/A||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|
|New Customer / New Plan||N/A||N/A||N/A||N/A||✗||N/A||N/A||N/A||N/A||N/A|
|Paperless / Auto Billing||✗||✗||✗||N/A||✗||$30||✗||$2||3||3|
|Seat Belt Use||N/A||N/A||N/A||15||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|
Get Your Rates Quote Now
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.