Medicaid Auto Insurance [Updated + Discounts]
Medicaid auto insurance coverage is a provision that's offered under standard Medicaid coverage, but it’s not actually car insurance. Medicaid auto insurance only covers medical expenses for injuries that result from an accident. You may also qualify for car insurance discounts or low-income state programs such as Medicaid dollar-a-day insurance, which can save you money.
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UPDATED: Jan 12, 2021
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- There is no Medicaid auto insurance, but your Medicaid insurance may provide coverage for any accident-related injuries.
- If you live in California, Hawaii, or New Jersey, you may qualify for state-sponsored auto insurance programs.
- If you don’t live in one of those states, or you don’t qualify for low-income insurance, there are still things you can do to lower your rates.
Is Medicaid auto insurance a provision within the Medicaid program? Most of the time, the answer is no, but you might be in luck.
Medicaid is the government-run healthcare program for low-income families in the United States. It is funded by both the federal and state governments and managed by each individual state. Both U.S. and non-U.S. citizens can be served by Medicaid.
Eligible groups include low-income adults and their children and people with certain disabilities. Medicaid is the largest source of health insurance for low-income families in the United States.
Read this article for more on Medicaid auto insurance and auto insurance basics. Understanding auto insurance can help you find the best ways to save money and more.
Whether or not you qualify for Medicaid auto insurance, you can lower your rates by using your ZIP code in our free tool. This will let you start comparing auto insurance rates today.
What is Medicaid auto insurance?
Is Medicaid auto insurance an option? Does Medicaid sell auto insurance? What is Medicaid dollar-a-day insurance? Read the next few sections to find out everything you need to know about Medicaid auto insurance options and whether you qualify.
Can you get Medicaid auto insurance?
Medicaid auto insurance doesn’t technically exist, but if you have Medicaid, it may help cover your medical costs if you’re in an accident.
However, because it is a form of health insurance, not auto insurance, this coverage will not extend to anyone else in your vehicle, nor will it pay for any repairs on your vehicle.
Does Medicaid cover auto accidents?
According to the Medicaid website, Medicaid requires certain mandatory benefits to be provided, with optional benefits by state. But does having Medicaid qualify you for any type of auto insurance benefits? Depending on your state, you might be in luck.
In most states, Medicaid alone will not cover injuries sustained in automobile accidents. You will need an additional insurance policy to cover this.
It is most likely that your Medicaid policy WILL NOT cover auto accident injuries.
Also, because Medicaid regulations differ in each state (and are always changing), it’s hard to say if they will pay anything until claims against the auto insurance company have been exhausted.
Please visit the government Medicaid website to see if your state offers any type of auto insurance help for Medicaid policyholders. You may also call the Medicaid headquarters toll-free (877) 267-2323.
Each state has its own requirements for automotive liability requirements. That’s required just about everywhere. You don’t normally have to have full coverage unless the lender you financed your vehicle from requires it.
You may need medical payments coverage on your auto insurance, but that is up to your state. Take a look at this table for a full list of the minimum insurance requirements by state, including those states that require MedPay coverage.
|State||Insurance required in the state||Minimum liability limits|
|Alabama||BI & PD Liab||25/50/25|
|Alaska||BI & PD Liab||50/100/25|
|Arizona||BI & PD Liab||15/30/10|
|Arkansas||BI & PD Liab, PIP||25/50/25|
|California||BI & PD Liab||15/30/5|
|Colorado||BI & PD Liab||25/50/15|
|Connecticut||BI & PD Liab, UM, UIM||25/50/20|
|Delaware||BI & PD Liab, PIP||25/50/10|
|District of Columbia||BI & PD Liab, UM||25/50/10|
|Florida||PD Liab, PIP||10/20/10|
|Georgia||BI & PD Liab||25/50/25|
|Hawaii||BI & PD Liab, PIP||20/40/10|
|Idaho||BI & PD Liab||25/50/15|
|Illinois||BI & PD Liab, UM, UIM||25/50/20|
|Indiana||BI & PD Liab||25/50/25|
|Iowa||BI & PD Liab||20/40/15|
|Kansas||BI & PD Liab, PIP||25/50/25|
|Kentucky||BI & PD Liab, PIP, UM, UIM||25/50/25|
|Louisiana||BI & PD Liab||15/30/25|
|Maine||BI & PD Liab, UM, UIM, Medpay||50/100/25|
|Maryland||BI & PD Liab, PIP, UM, UIM||30/60/15|
|Massachusetts||BI & PD Liab, PIP||20/40/5|
|Michigan||BI & PD Liab, PIP||20/40/10|
|Minnesota||BI & PD Liab, PIP, UM, UIM||30/60/10|
|Mississippi||BI & PD Liab||25/50/25|
|Missouri||BI & PD Liab, UM||25/50/25|
|Montana||BI & PD Liab||25/50/20|
|Nebraska||BI & PD Liab, UM, UIM||25/50/25|
|Nevada||BI & PD Liab||25/50/20|
|New Hampshire||FR only||25/50/25|
|New Jersey||BI & PD Liab, PIP, UM, UIM||15/30/5|
|New Mexico||BI & PD Liab||25/50/10|
|New York||BI & PD Liab, PIP, UM, UIM||25/50/10|
|North Carolina||BI & PD Liab, UM, UIM||30/60/25|
|North Dakota||BI & PD Liab, PIP, UM, UIM||25/50/25|
|Ohio||BI & PD Liab||25/50/25|
|Oklahoma||BI & PD Liab||25/50/25|
|Oregon||BI & PD Liab, PIP, UM, UIM||25/50/20|
|Pennsylvania||BI & PD Liab, PIP||15/30/5|
|Rhode Island||BI & PD Liab||25/50/25|
|South Carolina||BI & PD Liab, UM, UIM||25/50/25|
|South Dakota||BI & PD Liab, UM, UIM||25/50/25|
|Tennessee||BI & PD Liab||25/50/15|
|Texas||BI & PD Liab, PIP||30/60/25|
|Utah||BI & PD Liab, PIP||25/65/15|
|Vermont||BI & PD Liab, UM, UIM||25/50/10|
|Virginia||BI & PD Liab, UM, UIM||25/50/20|
|Washington||BI & PD Liab||25/50/10|
|West Virginia||BI & PD Liab, UM, UIM||25/50/25|
|Wisconsin||BI & PD Liab, UM, Medpay||25/50/10|
|Wyoming||BI & PD Liab||25/50/20|
To better understand this table, we’ve summarized the acronyms and abbreviations here.
|Abbreviation||Auto Insurance Type|
|PD||Property Damage Liability|
|PIP||Personal Injury Protection|
For example, if your state requires 15/30 auto insurance, you’ll need $15,000 to cover bodily injury for one person and $30,000 for all persons in one accident.
What is the difference between Personal Injury Protection (PIP) and MedPay? Both are additional liability requirements for medical expenses.
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What state-sponsored low-income auto insurance programs are available?
While you already know that Medicaid auto insurance isn’t an option, in some states, your Medicaid will qualify you for coverage assistance.
In January 2020, nearly 64 million individuals were enrolled in Medicaid. If your Medicaid policy does not cover automobile accident injuries, a good auto insurance policy will.
Unfortunately, many drivers throughout the country remain uninsured because they simply cannot afford it.
Many states have set up low-cost auto insurance programs (separate from Medicaid) for those who qualify for it.
Read through the next few sections to learn more about these programs.
What is the California low-Cost automobile insurance program?
California, for example, has set up the California Low-Cost Automobile Insurance (CLCA) Program, which helps low-income families obtain affordable auto insurance.
Unlike some of the other state-sponsored insurance programs, CLCA enables qualified drivers to purchase coverage that meets at least the minimum coverage required by the state, along with some optional coverages like uninsured motorist coverage.
What state-sponsored auto insurance is available in Hawaii?
According to the Hawaii Government website, the state offers help through their Aid to the Aged, Blind, and Disabled (AABD) program with supplemental security income (SSI) insurance.
Individuals over the age of 65 and those who are blind or otherwise disabled may qualify for auto insurance offered by the state.
You can reach out to your local government offices to find out if you qualify.
Does Maryland offer a private auto insurance option?
Maryland has a private insurance option, known as Maryland Auto Insurance (formerly MAIF), which is not in any way government-sponsored, that provides specialty coverage.
This provides auto liability insurance to residents of Maryland who aren’t able to get insurance the normal way.
Maryland drivers get at least 30/60/15 coverage, which breaks down to $30,000 in personal bodily liability per person, $60,000 in personal bodily liability per accident, and $15,000 in property damage liability.
They also offer some limited optional coverage, including collision and comprehensive coverage. For information on Medicaid car insurance in New Jersey and other policies, read on.
What is New Jersey dollar-a-day auto insurance coverage?
The Special Auto Insurance Policy (SAIP) for New Jersey auto insurance allows drivers who are eligible for Medicaid and welfare to obtain auto insurance cheaply, but it’s medical-only liability coverage.
What are the requirements for this low-income dollar-a-day car insurance in NJ under SAIP? If you’re on Medicaid, you stand a good chance.
How can you get dollar-a-day auto insurance in New Jersey?
It’s best to contact your local government agency to see what the requirements are. You will have to provide your driver’s licenses and Medicaid cards for all drivers.
It’s also important to note that if your driver’s license has been suspended or revoked, you won’t be eligible for coverage.
Whether you’re looking for dollar-a-day car insurance in East Orange, NJ or Newark, NJ, the SAIP policy may be able to help.
What’s the cost of New Jersey SAIP auto insurance?
New Jersey SAIP insurance costs $365 per year, which works out to a dollar per day. You can pay in a single, annual payment, in which case you’ll save an additional $5, or you can pay half at the beginning of your policy term and the other half six months in.
This policy ONLY covers medical expenses resulting from auto accidents. And this medical coverage is limited to emergencies, critical brain and spinal cord injuries, and death benefits.
Items not covered are any property damage for you and others, bodily injury of others, and any medical issues not related to your brain or spinal cord.
It is not to be confused with liability coverage, collision coverage, comprehensive coverage, or any other auto insurance coverage type.
What are tips for low-income families to get cheap auto insurance?
What if you don’t qualify for low-income coverage options available in some states? There are some ways to lower your insurance rates to make them more affordable for your budget.
For example, you could take a defensive driving class, ask for a higher deductible, ask your insurance agent about any money-saving options, and more.
Read on for more information on ways to save money. This is not a complete list, but in the next few sections, we’ve covered some ways to save on your insurance.
What discounts are available for auto insurance?
Apart from government programs, there are many discounts available through insurance providers. Here are some discounts provided by the major auto insurers in the country.
|Discounts||21st Century Auto Insurance Discounts Offered||AAA Auto Insurance Discounts Offered||Allstate Auto Insurance Discounts Offered||American Family Auto Insurance Discounts Offered||Ameriprise Auto Insurance Discounts Offered||Amica Auto Insurance Discounts Offered||Country Financial Auto Insurance Discounts Offered||Esurance Auto Insurance Discounts Offered||Farmers Auto Insurance Discounts Offered||GEICO Auto Insurance Discounts Offered||Liberty Mutual Auto Insurance Discounts Offered||MetLife Auto Insurance Discounts Offered||Nationwide Auto Insurance Discounts Offered||Progressive Auto Insurance Discounts Offered||Safe Auto Auto Insurance Discounts Offered||Safeco Auto Insurance Discounts Offered||State Farm Auto Insurance Discounts Offered||The General Auto Insurance Discounts Offered||The Hanover Auto Insurance Discounts Offered||The Hartford Auto Insurance Discounts Offered||Travelers Auto Insurance Discounts Offered||USAA Auto Insurance Discounts Offered|
|Adaptive Cruise Control||No||No||No||No||No||No||No||No||No||No||Yes||Yes||Yes||Yes||No||No||No||No||No||No||No|
|Daytime Running Lights||Yes||Yes||Yes||Yes||Yes||No||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes||Yes||No||No||No||Yes||Yes||Yes||Yes|
|Electronic Stability Control||No||No||Yes||Yes||No||Yes||Yes||No||Yes||No||Yes||Yes||Yes||Yes||No||No||No||No||No||No||No||No|
|Lane Departure Warning||No||No||No||No||No||No||No||No||No||No||Yes||Yes||Yes||Yes||No||No||No||No||No||No||No||No|
|Forward Collision Warning||No||No||No||No||No||Yes||Yes||No||No||No||Yes||Yes||Yes||Yes||No||No||No||No||No||Yes||No||No|
|New Customer/New Plan||No||No||No||No||No||No||No||No||No||Yes||Yes||No||No||Yes||No||No||No||No||No||No||No|
|On Time Payments||No||No||Yes||No||No||No||No||No||No||No||No||No||No||Yes||No||No||No||No||Yes||Yes||No|
|Seat Belt Use||No||No||No||No||No||No||No||No||No||Yes||No||No||No||No||No||No||No||No||No||No||No||No|
|Students & Alumni||No||No||No||Yes||No||No||No||Yes||No||Yes||Yes||Yes||Yes||No||No||No||No||No||No||No||No||No|
A lot of times, it just comes down to shopping around and doing your research. Inquire about any discounts or special programs that are available. Often times, the insurance will be much cheaper than you expected.
Should you shop around for auto insurance?
Shopping for insurance and comparing rates can have a significant effect on your auto insurance rates. We recommend getting quotes from at least three insurance companies so you can compare and find the best coverage at a rate you can afford.
Should you change your driving habits?
Reducing how much time you spend driving can mean a reduction in rates. A proven track record for lower mileage can mean a readjustment in your rates because the less time you spend on the road, the lower risk you are to insure.
In addition, with low mileage, you may qualify for discounts based on your driving habits, which can further lower your rates.
It is important to never let your auto insurance lapse. Getting stopped without insurance can result in high fines. Not to mention it is very dangerous to be driving without insurance.
What types of auto insurance are available?
As we noted earlier, every state in the country (except for Virginia and New Hampshire) requires a minimum amount of car insurance coverage, which varies by state.
However, you can purchase a number of other coverage types beyond the minimum required by your state, including liability, collision, comprehensive, medical payments, personal injury protection, and uninsured/underinsured motorist coverage.
There isn’t a direct correlation between standard auto insurance options and what is available through Medicaid auto insurance, but a close comparison is Medpay. However, Medpay covers you and your passengers, while the Medicaid coverage only covers you.
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Medicaid Auto Insurance: The Bottom Line
Medicaid-enabled low-income auto insurance is only available for qualified Medicaid recipients and, in many cases, coverage is extremely limited. However, if you qualify, it may be worth considering if it makes the most financial sense.
California, New Jersey, and Hawaii are the only states that offer government-subsidized or government-aided auto insurance, but if you don’t live in one of those states or you don’t qualify, there are other ways you can lower your insurance rates.
Shopping around, applying for discounts, and driving as little as possible are just a few ways to lower your rates to make your coverage as affordable as possible.
If you don’t qualify for state-sponsored or Medicaid auto insurance (and even if you do), take a few minutes to compare auto insurance quotes to see how affordable your rates can be. Start by entering your ZIP code in our free tool to get your first affordable car insurance quote today.
Frequently Asked Questions: Medicaid Auto Insurance
Still have questions about car insurance through Medicaid that you want to be answered before you buy auto insurance? Read these frequently asked questions for more.
#1 – Will my policy be canceled if my Medicaid benefits are discontinued?
As long as you provide proof of active Medicaid benefits at the beginning of the policy term, your SAIP coverage will not be canceled mid-term. However, when it comes time for renewal, you will no longer qualify for SAIP coverage.
#2 – If more than one driver in the house is on Medicaid, can they all get the SAIP?
Only people with qualified Medicaid can get SAIP, so if other individuals in the home have qualified Medicaid, they may all be insured under the same policy, but only one vehicle is permitted to be on that policy.
#3 – How does SAIP compare to other New Jersey state automobile insurance plans?
SAIP coverage is extremely limited, as you saw earlier. However, it only costs $365 per year, so it may be a good option financially if you qualify.
Basic coverage in New Jersey, on the other hand, will cost you a bit more, but is available to all drivers in the state and offers coverage beyond just emergency and death benefits.