Low-Income Car Insurance (2023): Most Affordable Providers

In the United States, you’re considered low-income if you’re a single individual making less than $50,050 per year or a family of four making less than $71,500 per year.^[1] While your household income may determine what type of vehicle you can afford to purchase, your income doesn’t directly affect your car insurance rate.

To help you find the cheapest car insurance for low-income individuals, Insurify analyzed recent rate data for dozens of car insurance companies. Here’s what you need to know about the cheapest car insurance companies for low-income drivers and state-sponsored and non-state-sponsored car insurance programs.

How much does car insurance cost for low-income drivers?

A variety of different factors affect the cost of car insurance, like your location, age, credit score, driving record, and claim history.^[2] For minimum-coverage insurance, national average rates range from $98 (Mile Auto) to $517 (Everest National), and $107 (Mile Auto) to $746 (Everest National) for full coverage.

Cheapest car insurance companies for low-income drivers

When shopping for cheap low-income car insurance, you should pay attention to a few criteria like average rates, discounts, and the type of coverage.

Insurify’s data shows that liability-only coverage is cheaper than a full-coverage policy from the same insurer. However, a liability-only policy may not offer enough protection for you and your vehicle if you cause an accident. For more protection, you might consider upgrading to a full-coverage car insurance policy.^[3]

The table below shows the 15 cheapest car insurance companies for low-income individuals based on Insurify’s recent quote data, as well as their average premiums for minimum coverage and full coverage:

Affordable car insurance providers for low-income drivers by state

Car insurance is a legal requirement in almost every state, but the specific requirements and average car insurance premiums vary based on your location.

One way to find the cheapest low-income car insurance in your state is to shop around and compare personalized quotes.^[4] To help you get started, Insurify found the most affordable car insurance company in each of the 15 most-populated states.

Affordable car insurance companies for low-income seniors

Car insurance rates are typically the highest for young drivers who are newly licensed. ^[2] As drivers get older, their car insurance rates start to decrease, assuming they maintain a clean driving record and avoid claims.

In the table below, you can see the five cheapest car insurance companies for low-income seniors, as well as the average monthly premium for minimum-coverage insurance. 

Cheap car insurance for drivers with disabilities

If you or someone in your family lives with disabilities, it’s important to understand how it can affect your car insurance premium and your coverage needs. Here are a few things to keep in mind as you shop for auto insurance. 

Disabilities can affect your premium

Under the American Disabilities Act (ADA), it’s illegal for insurance companies to charge higher auto insurance rates simply because you have a disability. However, insurance providers can increase your rate if they believe your disability could increase your risk of an accident, or if your vehicle has accessibility modifications.^[5]

Vehicle modifications for accessibility can be insured

You can insure accessibility modifications to your vehicle, such as a wheelchair lift or transfer seat. But liability-only car insurance doesn’t provide any protection for your vehicle or its modifications when you cause an accident.^[6] If you want to fully insure your modified vehicle, you need to purchase a full-coverage policy.

Understand your options for getting cheap insurance with Social Security Income

Social Security Income (SSI) provides supplemental income to low-income individuals and families, and people with disabilities or blindness.^[7] Because SSI is a low fixed income, it can make it difficult to afford a traditional car insurance premium. If you receive SSI benefits, you might be able to qualify for certain low-income car insurance programs.

How to find affordable coverage for drivers with disabilities

Drivers with disabilities can potentially get a lower car insurance premium in several ways, including: 

• Look for discounts. Some car insurance companies offer discounts that can help you save money on your policy. You can often find discounts for taking a defensive driving course, having no recent claims, having a clean driving record, and having certain safety features in your car, like anti-lock brakes or an anti-theft device.

• Bundle two or more policies. If you purchase two or more insurance policies from the same insurer, like auto insurance and home insurance, you can usually qualify for a discount on your combined premium.

• Research low-income insurance programs. Depending on your exact income, location, and coverage requirements, you might be able to qualify for a government insurance program for low-income individuals. 

• Compare quotes. To find cheap car insurance for low-income drivers with disabilities, use a quote-comparison platform to compare car insurance quotes from multiple companies.^[4]

Top factors that determine car insurance premiums

Many factors affect your personalized car insurance premium, including:

• Vehicle: Your vehicle’s make, model, and year affect the cost of your car insurance. In general, newer vehicles are more expensive to insure, while used models or older cars are less expensive to insure.

• State and ZIP code: Your location has a big impact on the cost of your car insurance. For example, areas that have a high risk of severe weather, or ZIP codes with a high rate of car theft, often have more expensive car insurance premiums.

• Age: Young drivers usually pay the highest rates for car insurance. Premiums drop consistently during adulthood and start getting more expensive in older age.

• Gender: Because males are more likely to get into accidents and drive recklessly, women tend to pay lower rates than men.^[2]

• Marital status: Married drivers often pay slightly less for car insurance than single drivers. 

• Driving history: If you have an excellent driving record with no recent accidents or speeding tickets, you’ll probably pay less for car insurance. People with a history of traffic violations often pay more expensive rates.^[8]

• Previous insurance coverage: Drivers who have been continuously insured, with no lapses in coverage, typically pay lower car insurance rates. 

• Claims history: Insurance companies review your personal claim history when calculating your car insurance rate. If you’ve filed multiple insurance claims in the past, expect that to affect your car insurance rate.

• Credit score: In every state except California, Massachusetts, Washington, and Hawaii, car insurance companies are allowed to run your credit when you apply for coverage. Drivers with poor credit scores are more likely to experience insured losses, so they generally pay higher premiums than drivers with good credit.^[9]

• Average mileage: The less frequently you drive, the lower your car insurance rate will be. That’s because driving infrequently reduces your risk of getting into an accident.

• Coverage type and deductibles: Minimum-coverage car insurance policies are cheaper than full-coverage policies, and if you purchase endorsements, that will cause your rate to increase. Some policies also require a deductible, like collision or comprehensive insurance. Choosing a high deductible will lower your premium and vice versa. 

How to get a special auto insurance policy for low-income drivers

Low-income individuals and families can take advantage of some state-sponsored and non-state-sponsored car insurance programs. While every program is unique, most have a series of eligibility requirements you must meet. 

Low-income auto insurance programs can make it easier to find cost-effective coverage. However, there are some downsides to consider. For example, some programs only offer minimum-coverage policies, which may not offer enough protection for your needs.

Government insurance programs

A handful of states offer government insurance programs for low-income drivers. 

“Currently, California, Hawaii, and New Jersey have state programs to help low-income drivers with their insurance bills,” says Nick Schrader, an insurance agent with Texas General Insurance. “However, there is no national, federal program to help low-income individuals pay for car insurance.”

California

California’s Low-Cost Auto (CLCA) Insurance is a state-funded program that provides more affordable coverage to eligible drivers. It only provides state minimum liability insurance for the vehicle’s primary driver and one additional driver. You can also add medical payments and uninsured/underinsured motorist insurance for an additional fee.

Here are the requirements for the CLCA program:

• Have a valid California driver’s license

• Meet the income requirements

• Own a vehicle valued at less than $25,000

• Be at least 16 years old

• Have a good driving record or be a newly licensed driver

Hawaii

Hawaii’s Assistance to the Aged, Blind, and Disabled (AABD) program provides car insurance and other essential benefits to qualifying individuals. To learn more about what types of car insurance are available and how to secure coverage, reach out to Hawaii’s Department of Human Services.

To qualify, you must meet the following requirements:

• Be a Hawaii resident

• Have a valid Hawaii driver’s license

• Must be older than 65 or meet the Social Security Administration (SSA) definition of disabled or blind

• Meet the income requirements

New Jersey

New Jersey has two low-income car insurance programs.

The New Jersey Special Automobile Insurance Policy (SAIP) allows low-income New Jersey residents to secure medical payments coverage if they receive federal Medicaid with hospitalization benefits. Drivers who qualify for this policy can get a medical coverage-only policy for $365 per year, which is about $30 per month.

There’s also the Basic Policy, which only provides a small amount of personal injury protection (PIP) and property damage liability coverage. Drivers can also add bodily injury liability, collision, and comprehensive insurance for an added fee.

If you’re eligible, you can purchase both policies through New Jersey auto insurance companies. 

Non-state-affiliated programs

If your state doesn’t offer a state-sponsored car insurance program, you might look into non-state-affiliated programs. These programs aim to help low-income drivers get car insurance if they can’t afford a traditional policy. To qualify for these programs, you generally must meet certain income requirements. 

Maryland Auto

The Maryland Auto Insurance program provides guaranteed car insurance if you’ve been denied coverage or had your policy canceled in the past. To participate in the program, you must be a Maryland resident and have a valid Maryland driver’s license.

In addition to liability-only insurance, you can get collision, comprehensive, rental car, and towing coverage through the Maryland Auto program. 

CURE

CURE (Citizens United Reciprocal Exchange) is a car insurance company that specializes in insuring low-income individuals, as well as high-risk drivers who may not be able to get approved for a traditional policy. CURE doesn’t use your education, occupation, or credit score to calculate your car insurance rates, so those factors won’t affect your premium.

CURE offers a variety of coverages, including liability-only insurance, uninsured/underinsured motorist coverage, personal injury protection (PIP), collision insurance, and comprehensive insurance, as well as 24/7 roadside assistance. But CURE only sells policies in New Jersey, Pennsylvania, and Michigan.

Type of employment

The type of job you have can affect your car insurance premium. If your job requires long-distance commutes, for example, you might pay a higher car insurance premium due to the increased risk of an accident or other claim.^[10]

But your employment could also get you discounts on car insurance. For example, GEICO offers military and educator discounts to help people in those professions get lower rates.

Education

When you apply for a car insurance policy, you might see a question about your education on the application. In general, the more educated you are, the less you’ll pay for car insurance. Based on Insurify’s analysis of recent rate data, drivers who only completed high school pay the highest average rates, whereas drivers with a doctorate pay the lowest rates.

In the table below, you can see the average cost of full-coverage car insurance based on education level:

Credit score

In most states, insurance companies can check your credit when you apply for car insurance.^[7] Drivers with poor credit are more likely to file insurance claims, so they often face higher rates for coverage.^[11] Excellent credit can help you get the most affordable premium for your situation.

To help you gauge the cost of car insurance based on credit score, Insurify collected average full-coverage premiums for drivers with excellent credit, good credit, and poor credit. 

Homeownership

If you own a home, buying your homeowners and auto insurance policies from the same insurance company could help you save money. Many insurers offer “bundling discounts” to drivers who also insure their homes with the company. But keep in mind not all car insurance companies also sell homeowners insurance. 

9 ways low-income drivers can save on car insurance

Low-income drivers can save money on their car insurance policy using these nine tips. 

1. Apply for auto insurance discounts

Discounts can reduce the cost of a low-income car insurance policy and help you get the best deal. As you’re shopping for car insurance, pay attention to the discounts each provider offers, and try to choose a company that offers multiple discounts you can qualify for.  

• Defensive driving course: If you take an approved defensive driving course and show the certificate of completion to your insurance company, you can often get a discount on your premium. 

• Clear driving record: Drivers with a clear record get rewarded with a lower premium. Usually, you can automatically get this discount if your insurer reviews your record and determines that you have no recent accidents or traffic violations. 

• Pay in full: Paying your annual premium in full may help you get a small discount on your car insurance. But you should only choose this option if you can afford to pay your entire premium up front in one lump sum. 

• Job-related discounts: Some insurance companies offer job-related discounts. For example, you might find a company that offers special discounts for first responders, medical professionals, or teachers.

• Good student discounts: High school and college students who get good grades in school or maintain a minimum GPA can often qualify for a discounted car insurance premium. To claim this discount, you’ll need to send a copy of your transcript or another official document from the school with your GPA and enrollment status.

• Bundling discounts: Many car insurance providers provide discounts if you purchase an auto and home insurance policy together. The discount is reflected in your combined premium.

• Vehicle option discounts: If your vehicle is equipped with advanced features or safety equipment, you could qualify for a discount. For example, many insurers offer savings if your car has anti-lock brakes, an anti-theft device, or factory-installed airbags.^[4]

2. Pay on a month-to-month basis

While some car insurance companies provide a pay-in-full discount, you don’t necessarily need to pay your annual premium in full to save money. Paying your premium monthly reduces the amount you owe at a given time, which could put less strain on your budget.

3. Sign up for telematics-powered auto insurance

Some of the largest car insurance providers offer telematics programs for low-income drivers. To participate in these programs, you install a device in your vehicle or use a mobile app that tracks your driving behaviors, like acceleration and brake force. If you practice safe driving habits, you can get rewarded with a discounted premium.

You can only enroll in a telematics-powered auto insurance program if you have a car insurance policy from a company that offers one. Here are some of the most popular telematics programs:

• State Farm Drive Safe and Save: Save up to 30%

• Progressive Snapshot: Save an average of $156 a year

• Liberty Mutual RightTrack: Save up to 30%

• USAA SafePilot: Save up to 30%

4. Reduce the number of cars you own

If you own multiple vehicles, you’re probably spending a lot of money to insure them all. To save money, consider selling some of the vehicles you currently own. Not only will you spend less on insurance, but you can also save money on gas and maintenance costs.

5. Use a vehicle that’s cheaper to insure

The make and model of your vehicle are factors that affect the cost of low-income car insurance.^[2] Some vehicles are more expensive to insure than others, so choosing a car that’s cheaper to insure could help you save money on your policy.

In the table below, you can see which vehicle makes and models have the cheapest average insurance premiums, based on recent rate data.

6. Pay claims out of your pocket

If you get into an accident or something happens to your vehicle, it’s important to assess the damage immediately. But if the damage is minor, you should think about paying for the repairs out of pocket, rather than filing a claim with your car insurance company.

Filing insurance claims typically causes your premium to increase.^[8] If you get a repair estimate from a local auto body shop and you can afford to pay for the repairs out of pocket, it could help you avoid a rate increase in the future.

To give you an idea of how much your rate might increase after a claim, you can see below for average premiums after an at-fault accident from 15 different insurance companies.

7. Consider buying pay-per-mile car insurance

Some infrequent drivers can save money by choosing pay-per-mile car insurance. These policies are designed for people who drive infrequently (usually 10,000 miles per year or less). Rather than paying a flat monthly premium, you pay a monthly fee plus a fixed rate for each mile you drive. At the end of the payment period, your premium is calculated based on the distance you drove.

If you only use your car occasionally, opting for a pay-per-mile car insurance policy could be a cheaper option than traditional car insurance. But keep in mind that pay-per-mile insurance could be more expensive if you use your car for daily commutes or errands. It’s worth getting multiple quotes to see what type of policy is the cheapest for you. 

8. Don’t let your coverage expire

If your car insurance expires, you’ll have a lapse in coverage on your driving record. When you apply for coverage in the future, having a lapse in insurance could cause your premium to be more expensive.^[12] Avoid letting your car insurance expire, and if you can’t afford the payments, talk to your car insurance company to see what options you might have.

9. Shop around

One of the best ways to get affordable car insurance as a low-income driver is to shop around and compare providers.^[4] Quote-comparison platforms make it easy to get personalized car insurance quotes from multiple insurers with a single application.

To compare quotes with Insurify, you’ll need to submit some information about yourself and your vehicle. Then, you’ll get matched with top-rated companies in your area that offer the type and amount of coverage you want. You can choose the company with the most affordable quote and purchase a policy online or by calling an agent.

Low-income car insurance FAQs