Auto Insurance for Low-Income Families (2024)
Auto insurance for low-income families can be as low as $48 a month. However, your rates may vary. Several factors determine whether affordable car insurance for low-income families is available. Some states even provide government-sponsored coverage. To secure the cheapest and most reliable auto insurance, shop around and compare multiple companies to get the best rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 13, 2023
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.
UPDATED: Oct 13, 2023
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.
On This Page
- On average, the minimum auto insurance coverage is $48 a month
- Geico auto insurance is the most affordable company across the United States
- Four states have state-sponsored auto insurance
Did you know you can get state-sponsored car insurance for low-income families? A few states have government car insurance (sometimes listed as govt car insurance).
But what if you live in a state where government-issued auto insurance doesn’t exist? Don’t worry — we’re here to help.
Read this guide to learn how to buy affordable auto insurance for low-income families.
Also, we’ll show you the best auto insurance companies that provide low-cost auto insurance quotes and which states sponsor auto insurance.
After you learn more about auto insurance for low-income families, enter your ZIP code in the free online quote tool to compare multiple companies near you.
What are the cheapest auto insurance companies for low-income families?
Technically, you can locate affordable car insurance for low-income drivers anywhere in the United States. However, various factors determine whether cheap auto insurance is available to you.
One of those factors includes what company provides you with car insurance coverage. Let’s examine a list of states to see which company is cheapest per state:
Cheapest Auto Insurance Company by State
| States | Cheapest Company in the State |
|---|---|
| Alabama | Geico |
| Alaska | Geico |
| Arizona | Geico |
| Arkansas | Geico |
| California | Progressive |
| Colorado | Geico |
| Connecticut | Geico |
| Delaware | State Farm |
| Florida | Geico |
| Georgia | Geico |
| Hawaii | Geico |
| Idaho | State Farm |
| Illinois | Geico |
| Indiana | Erie |
| Iowa | Geico |
| Kansas | American Family |
| Kentucky | State Farm |
| Louisiana | Southern Farm Bureau |
| Maine | Geico |
| Maryland | Erie |
| Massachusetts | State Farm |
| Michigan | Nationwide |
| Minnesota | AAA |
| Mississippi | Geico |
| Missouri | State Farm |
| Montana | State Farm |
| Nebraska | Geico |
| Nevada | Geico |
| New Hampshire | Amica Mutual |
| New Jersey | Geico |
| New Mexico | MetLife |
| New York | Geico |
| North Carolina | Nationwide |
| North Dakota | Nodak Mutual |
| Ohio | Erie |
| Oklahoma | Geico |
| Oregon | Geico |
| Pennsylvania | Geico |
| Rhode Island | State Farm |
| South Carolina | Geico |
| South Dakota | Farmers Mutual of Nebraska |
| Tennessee | Geico |
| Texas | Farmers |
| Utah | Geico |
| Vermont | Vermont Mutual |
| Virginia | Progressive |
| Washington | Progressive |
| District of Columbia | Geico |
| West Virginia | Erie |
| Wisconsin | Geico |
| Wyoming | Geico |
The best low-income car insurance company is Geico. States list Geico as the most affordable company. Another good choice would be Progressive or State Farm.
However, the cheapest coverage may not always be best for you. Check out our Where can I compare online auto insurance companies? article to secure low-income car insurance and a reliable policy.
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Which states have the most affordable auto insurance for low-income families?
Where you live plays a significant role in car insurance for low-income single mothers, seniors, and other drivers who have a limited income.
But you can save hundreds of dollars per year if you buy liability-only coverage.
However, you could pay more or less depending on the state where you live. Let’s compare the monthly car insurance rates by state.
Liability Auto Insurance Monthly Rates by State
| State | Rates |
|---|---|
| Alabama | $37 |
| Alaska | $47 |
| Arizona | $48 |
| Arkansas | $36 |
| California | $45 |
| Colorado | $49 |
| Connecticut | $59 |
| Delaware | $69 |
| District of Columbia | $58 |
| Florida | $76 |
| Georgia | $55 |
| Hawaii | $39 |
| Idaho | $32 |
| Illinois | $40 |
| Indiana | $34 |
| Iowa | $27 |
| Kansas | $32 |
| Kentucky | $47 |
| Louisiana | $73 |
| Maine | $30 |
| Maryland | $55 |
| Massachusetts | $52 |
| Michigan | $72 |
| Minnesota | $39 |
| Mississippi | $41 |
| Missouri | $38 |
| Montana | $34 |
| Nebraska | $33 |
| Nevada | $64 |
| New Hampshire | $35 |
| New Jersey | $76 |
| New Mexico | $44 |
| New York | $71 |
| North Carolina | $31 |
| North Dakota | $25 |
| Ohio | $35 |
| Oklahoma | $40 |
| Oregon | $53 |
| Pennsylvania | $43 |
| Rhode Island | $68 |
| South Carolina | $50 |
| South Dakota | $26 |
| Tennessee | $37 |
| Texas | $49 |
| Utah | $45 |
| Vermont | $30 |
| Virginia | $38 |
| Washington | $53 |
| West Virginia | $43 |
| Wisconsin | $33 |
| Wyoming | $29 |
| U.S. Average | $48 |
North Dakota, South Dakota, and Iowa are the cheapest states for liability car insurance. Meanwhile, Florida, New Jersey, and Louisiana are the most expensive states.
Which states have government auto insurance for low-income families?
Four states have government-sponsored car insurance, and they are California, Hawaii, Maryland, and New Jersey.
What is the CLCA?
California’s government auto insurance assistance is called CLCA, or California’s Low-Cost Auto Insurance Program. Monthly rates are based on your county.
However, there’s a limit to how much you can earn per year if you want to qualify for California’s low-income car insurance coverage.
For example, a household of one must earn $30,350 or less to be eligible for California’s auto insurance coverage. The more people in your home, the higher the income limit.
What is the AABD?
Hawaii provides state-sponsored car insurance assistance through the Assistance to the Aged, Blind, and Disabled (AABD) program.
The AABD covers the cost of necessities such as food, clothing, shelter, and even auto insurance for people who qualify for government benefits.
What is the SAIP?
New Jersey’s state-sponsored car insurance coverage is called Special Automobile Insurance Policy (SAIP).
The SAIP targets medical coverage, but it may not provide coverage if a New Jersey resident has Medicaid.
Also, drivers in New Jersey can establish SAIP coverage through companies that have Personal Automobile Insurance Plans (PAIP).
What is the Maryland Automobile Insurance Fund?
The Maryland Automobile Insurance Fund (formerly known as MAIF) was established in 1972. It’s designed to provide coverage for drivers who can’t buy auto insurance at insurance companies.
Also, the Maryland Automobile Insurance Fund provides coverage for people who have canceled their car insurance policy and drivers who’ve been denied coverage.
What factors produce affordable auto insurance for low-income families?
Getting low-cost auto insurance quotes depends on several factors. Low-income auto insurance is possible if your personal factors line up with a low risk of filing claims.
Here’s a list of characteristics that correlate to cheap low income auto insurance:
- You’re older than 24
- You carry the minimum auto insurance requirement (liability coverage)
- Driving less during the policy
- Good credit
- A clean driving record
- High deductible
- Older vehicle make and model year
These factors not only correlate to affordable car insurance for low-income drivers, but they also qualify you for discounts.
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What are the best auto insurance discounts for low-income drivers?
Car insurance discounts save hundreds of dollars for drivers with a limited income. Let’s look at the top auto insurance deals for low-income drivers:
- Multi-Policy Discount
- Safe Driver Discount
- Usage-Based Insurance Discount
- Good Credit Discount
- Low Mileage Discount
- Good Student Discount
You can save up to 40% off when you have a clean driving record at Nationwide. Save even more when you stack a good credit discount to your savings.
Usage-based car insurance provides a discount based on your driving habits. However, discount values vary for each company.
If you’re a student, try to pick up as many student bargains from auto insurance companies.
Do seniors have cheaper auto insurance rates?
The answer is yes — affordable low-income auto insurance for seniors is more likely than any other age group in the United States.
Seniors are low-risk drivers. In other words, people who are 60 and older are less likely to file a car insurance claim. On average, seniors pay $50-$120 less than younger drivers.
Why should I avoid letting my auto insurance policy lapse?
A lapse in coverage means you’ve lost your car insurance at some point. Gaps in auto insurance coverage appear on your insurance record, and it increases your risk.
An increase in overall risk means more expensive auto insurance rates in the future.
Even if you went to get auto insurance quotes from different companies, your lapse in coverage drives up your rates. It’s more profitable to decrease your coverage than to have a coverage gap.
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Auto Insurance For Low-Income Families: The Bottom Line
The best thing for your car insurance budget is selecting affordable coverage. However, cheap auto insurance depends on where you live and what company has your auto insurance policy.
Other factors that determine car insurance generate discounts. Qualifying for multiple auto insurance deals can help budget while you’re insured.
Now that you know how to buy auto insurance for low-income families, use our free online quote tool to compare multiple insurance companies in your area.
Frequently Asked Questions
Can low-income families afford auto insurance?
Affordability can be a concern for low-income families, but there are options available to help make auto insurance more accessible.
What are the pros of auto insurance for low-income families?
- Financial protection: Auto insurance provides coverage for accidents, repairs, and theft, reducing the financial burden on low-income families.
- Legal compliance: Owning auto insurance ensures compliance with state or country laws, avoiding potential fines or legal issues.
- Peace of mind: Having insurance coverage offers peace of mind, knowing that any unforeseen accidents or damages will be taken care of.
What are the cons of auto insurance for low-income families?
- Cost: The cost of auto insurance premiums can be a burden for low-income families, especially if their budget is already stretched thin.
- Limited coverage options: Some low-cost insurance options may provide limited coverage, which could leave families vulnerable in certain situations.
- Difficulty finding affordable options: Finding affordable auto insurance tailored for low-income families can be challenging, as many insurance providers may have higher premiums.
Are there any options for low-income families to find affordable auto insurance?
Yes, there are several options available:
- State assistance programs: Some states offer auto insurance assistance programs specifically for low-income individuals and families.
- Low-cost auto insurance providers: Some insurance companies specialize in providing coverage options for low-income families at reduced rates.
- Discounts and flexible payment plans: Many insurance providers offer discounts or flexible payment plans to help reduce the financial burden for low-income families.
How can low-income families save on auto insurance?
- Shop around: Compare quotes from multiple insurance providers to find the most affordable option.
- Choose a higher deductible: Opting for a higher deductible can lower monthly premiums, but it means paying more out of pocket in case of an accident.
- Take advantage of discounts: Inquire about available discounts such as multi-policy, good driver, or low mileage discounts.
- Maintain a clean driving record: A good driving record can help lower insurance premiums over time.
- Consider usage-based insurance: Some insurance providers offer usage-based insurance programs where premiums are based on actual driving habits, potentially reducing costs for safe drivers.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
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.