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With the price of rent, bills, and other goods skyrocketing these days, it can feel hard to prioritize needs. But the high cost of keeping life running should not mean compromising on your or your family’s safety. Insurify makes the car insurance comparison process easy and help you find coverage that won’t break the bank.
- The cheapest insurer we found for low-income drivers is USH&C, with average premiums of $110 per month.
- California, Hawaii, Maryland, and New Jersey offer programs to help low-income drivers pay for car insurance.
- Comparing quotes, applying discounts, and keeping a clean driving record will help drivers find and maintain low insurance premiums.
Cheapest Car Insurance Companies for Low-Income Drivers
We put together a list of the cheapest car insurance companies for low-income drivers. This way, you can be sure you’re getting coverage to protect you and your family at the best rates. Staying safe on the road shouldn’t break the bank. Keep reading to see what the average monthly quote is for some great insurance companies.
Be sure to shop around and keep in mind that these numbers are just averages. Your unique driving history and a number of factors will have a major effect on the cost of your car insurance, so get quotes from several different insurance companies and not just the ones with the lowest rates. The same exact driver can get different quotes from different car insurance companies.
|Insurance Company||Monthly Quote for Federal Employees|
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How much does car insurance cost for low-income drivers?
The cost of insurance premiums varies based on a number of factors. What you drive, whether you’re a good driver, whether you have a poor credit score, and more can all determine how much you pay for an auto insurance policy. Very few insurance providers take your income level into account but usually try to provide insurance options that fit their clients’ budgets.
Unfortunately, insurance providers do consider location when estimating a car insurance premium. Those who live in low-income neighborhoods may see higher insurance premiums because of high-risk factors, like potential theft, greater car usage (and less public transit options or feasibility), greater repair costs, and more.
Some low-income drivers might sacrifice their safety for cost and drive as uninsured motorists, which usually results in them paying more out of pocket for repairs after bodily injury. As a result, insurance providers jack up car insurance rates to make sure that they account for extra risk. Insurance companies might see low-income auto insurance as being in more need of:
- Collision coverage: This covers some of the costs in case you need to replace or repair your car if it’s damaged or destroyed in a car accident, regardless of who is at fault.
- Comprehensive coverage: This covers some of the costs in case you need to replace or repair your car if it’s damaged or stolen in an incident that is not a car crash, for example, vandalism, a fallen object like a tree branch or hail, or fire.
- Liability coverage: This protects drivers from paying for legal costs out of pocket if they find themselves accused of causing injuries or property damage in a filed claim.
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How can low-income drivers get help paying for car insurance?
For low-income families and individuals looking for affordable car insurance, one of the easiest ways to do this is to keep a clean driving record. Regardless of income level, if you are a high-risk driver prone to car accidents and filing claims, then your insurance quotes are more likely to be on the pricier side. Having a good driving record is an easy way to keep costs down.
Some of the top insurance companies, like GEICO, Nationwide, and State Farm, also reward policyholders for things like having a good student who maintains a B average (3.0 GPA) or better on their policy, bundling multiple policies with the same insurance company, or serving in the military. Be sure to shop around and see what discounts are available.
If you need more help, there are some ways to get a special automobile insurance policy. If you are a resident of California, Hawaii, Maryland, or New Jersey and can’t afford a policy, talk to an you may qualify for a special low-income policy. These states’ governments sponsor car insurance programs that have their own set of requirements and benefits:
- California: California’s Low-Cost Auto Insurance Program (CLCA) provides liability and uninsured motorist protection to state residents who are within 250 percent of the federal poverty limit and own a car worth less than $25,000. Applicants also need to show proof of having a good driving history on their California driver’s license.
- Hawaii: The state’s Assistance to the Aged, Blind, and Disabled (AABD) services offers free auto insurance with more specific eligibility requirements. Applicants are eligible if they have a disability or if they are 65 years older and have income below 34 percent of the federal poverty line.
- Maryland: Maryland Auto (formerly known as the Maryland Automobile Insurance Fund, or MAIF) provides car insurance at discounted rates to those who otherwise couldn’t afford it from traditional car insurance companies. All Maryland residents with a valid license are eligible to apply and buy car insurance from Maryland Auto, but there is preference for customers with a canceled policy or those who have been denied coverage from two or more private car insurance companies.
- New Jersey: The Special Automobile Insurance Policy (SAIP) is a state program with more limited benefits but only has one eligibility requirement, which is that applicants be enrolled in Medicaid. SAIP covers emergency medical costs if its low-income state residents are in an accident, providing coverage for federal Medicaid with hospitalization.
- While this is considered a “dollar-a-day” insurance policy, which qualifies as automobile insurance, the state recommends that its residents consider other options beyond this, because this emergency policy only provides absolute minimal protection. It does not cover damage or liability costs to the vehicle.
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Best Car Insurance Discounts for Cheaper Auto Insurance
Many insurance companies offer car insurance discounts to policyholders regardless of income level. Good driver discounts are available for policyholders without traffic violations or accidents on their record from the past three years. Low-mileage discounts can help drivers cut costs if they drive fewer than 10,000 miles a year.
Anti-theft device discounts reward drivers who install alarms and passive disabling systems in their cars for safety purposes. When you compare car insurance quotes on Insurify, you can unlock discounts you’re eligible for to secure the cheapest rates available to you.
Tips for Cheaper Car Insurance
If you’re not a resident of California, Hawaii, or New Jersey and need help affording a car insurance policy, there are other ways to save. First and foremost, be sure to shop around to make sure you’re getting the best rate and taking advantage of any and all of the discounts available.
Keep a Clean Driving Record
Regardless of your income level, if your driving history is clear of collisions and claims, it can mean saving big bucks on your auto insurance policy. Most insurance companies provide discounts for policyholders who show proof of being safe drivers. A good driver discount is one of the easiest ways to keep an annual premium low while also protecting yourself and others.
Take a Defensive Driving Course
Insurance companies will reward policyholders who have gotten a driving education. These courses teach people how to be safe on the road and react to risks like reckless driving from other drivers and poor visibility caused by dangerous weather conditions. A completed course shows that people put in the effort to keep a clean driving record.
Bundle Multiple Policies
You can save by bundling multiple policies, like homeowners or renters insurance, with your auto insurance policy. Insurance companies reward people who buy multiple policies under their brand and can give significant discounts for this. If you’re interested in this, be sure to mention it to an insurance agent when getting an estimate on a potential deductible.
Shop Around for Car Insurance
One of the easiest ways to save money on your car insurance policy is by shopping around for the cheapest rates. Insurify is the number one place to collect and compare multiple quotes to make sure you’re getting full coverage at a good price. Getting low income auto insurance doesn’t need to be daunting—Insurify makes it easy and gives you the best rates in minutes.
The Best Way to Compare and Get Cheaper Car Insurance
Everyone should feel safe behind the wheel, regardless of their income level. For low-income families and individuals, there are options for getting an affordable auto insurance policy to make sure that you and your loved ones are protected on the road. Driving with insurance coverage gives peace of mind and shouldn’t be an option only for those who can afford it.
Even easier, let Insurify do the work for you! We can help you find the best rates by letting you compare auto insurance and connecting you to hundreds of insurers. We tailor policies to your needs and offer personalized discounts and coverage options. Everyone deserves sufficient car insurance, regardless of their profession. Compare quotes to find the best rates today.
Frequently Asked Questions
Definitely! Most car insurance companies offer discounts for things like keeping your driving record free of claims, having a good student on your policy, bundling multiple policies, and more.
There are many options for getting cheaper car insurance coverage! Be sure to shop around, look at available discounts, and see if you’re eligible for a special low-income policy.
Insurify is the easiest and most reliable way to find low-income car insurance. Use our tools to help you find the best rates in a matter of minutes—and all for free.
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The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.