Best Auto Insurance for Low-Income Families (2021)
Those who are looking to buy auto insurance for low-income families have some things to be aware of. You can find auto insurance rates for low-income families in New Jersey, Hawaii, and California. In other states, drivers will need to procure a standard auto insurance policy, but can consult with insurance agents to gain insight on how many discounts they are applicable for. Always make sure to compare rates from at least three companies.
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UPDATED: Sep 9, 2021
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- Low-income auto insurance is available in only three states
- Even low-income drivers or families must have an insurance policy behind the wheel
- Discounts are ultimately the best way to decrease your premiums to a manageable level
Need help with auto insurance payments? By the end of this article, you will know how to find the best auto insurance for low-income families.
We are going to go over policy availability, how much the best income-based auto insurance policies are, and the best companies from which to procure them.
Before we dive into finding affordable auto insurance for low-income families, type your ZIP code into our free and helpful tool above to find the most affordable auto insurance quotes for low-income families in your area.
What states offer auto insurance for low-income families?
How does your income affect your insurance rates? Unfortunately, the lower one’s income, the higher their rates will probably be. For this reason, it is important to gain every advantage you can.
One option is government-sponsored auto insurance. There are currently but three states that offer government-sponsored auto insurance. These are:
- New Jersey
Government assistance for low-income car insurance in Washington State or low-income car insurance in Florida, for example, doesn’t exist.
California has the California Low-Cost Automobile (CLCA) insurance program. What does this offer its insured? Base coverage in the form of liability and underinsured motorist protection.
How does a driver attain CLCA eligibility? First, their vehicle must be valued at less than $25,000. They must also have a clean driving record and be within 250% of the federal poverty limit.
Hawaii’s program has a far more limited availability than CLCA. Its program is part of its Assistance to the Aged, Blind and Disabled (AABD) services.
What does AABD do? In terms of auto insurance, it outright provides a free policy to those with a disability.
Is there anyone else who can receive this free coverage? Those who are 65 or older and those with an income level 34% below the established federal poverty line.
New Jersey has the Special Automobile Insurance Policy (SAIP), which covers medical costs if you get into an accident that is not your fault.
However, it doesn’t cover any cost for which you are liable. Furthermore, SAIP only pays for your medical bills, not any damage to your vehicle. To enroll, the insured must be currently enrolled in Medicaid.
Let’s move on to the cost of low-income auto insurance in other states.
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How much is auto insurance for low-income families?
If you do not live in one of those three aforementioned states, you’re going to need to procure a standard policy. Before we go into how you can save on these expensive policies, let’s see just how costly they are.
For the sake of simplicity, the figures shown are for a policy that provides only minimum coverage.
|Company||Average Annual Rates for Minimum Coverage|
As you can see, it is possible to obtain coverage for less than $1,000 per year. However, keep in mind that this is just basic liability coverage and will not do much to protect you in the case of an accident.
Now, let’s look at a table that shows what these companies charge for the level of coverage that’s needed to operate a motor vehicle legally and safely.
|Company||Average Annual Auto Insurance Rates|
The unfortunate reality is that an auto insurance company isn’t going to decrease your rates just because you and your family are in a statistically low-paying field.
So, how do you go about decreasing the cost of your auto insurance rates for low-income families?
Auto Insurance Discounts for Low-Income Families
Major insurance companies offer a wide array of discounts for their insured to choose from. In the end, stacking discounts is by and large the best way to save when you buy auto insurance for low-income families.
Let’s take a look at a table that will shed some light on all of the discounts you can stack from major insurers.
|Discounts||21st Century Discounts Offered||AAA Discounts Offered||Allstate Discounts Offered||American Family Discounts Offered||Ameriprise Discounts Offered||Amica Discounts Offered||Country Financial Discounts Offered||Esurance Discounts Offered||Farmers Discounts Offered||Geico Discounts Offered||Liberty Mutual Discounts Offered||MetLife Discounts Offered||Nationwide Discounts Offered||Progressive Discounts Offered|
|Adaptive Cruise Control||✘||✘||✘||✘||✘||✘||✘||✘||✘||✘||✓||✓||✓||✓|
|Daytime Running Lights||✓||✓||✓||✓||✓||✘||✓||✓||✓||✓||✓||✓||✓||✓|
|Electronic Stability Control||✘||✘||✓||✓||✘||✓||✓||✘||✓||✘||✓||✓||✓||✓|
|Forward Collision Warning||✘||✘||✘||✘||✘||✓||✓||✘||✘||✘||✓||✓||✓||✓|
|Lane Departure Warning||✘||✘||✘||✘||✘||✘||✘||✘||✘||✘||✓||✓||✓||✓|
|New Customer/New Plan||✘||✘||✘||✘||✘||✘||✘||✘||✘||✘||✓||✓||✘||✘|
|On Time Payments||✘||✘||✓||✘||✘||✘||✘||✘||✘||✘||✘||✘||✘||✘|
|Seat Belt Use||✘||✘||✘||✘||✘||✘||✘||✘||✘||✓||✘||✘||✘||✘|
|Students & Alumni||✘||✘||✘||✓||✘||✘||✘||✓||✘||✓||✓||✓||✓||✘|
As you can see, companies like GEICO and Liberty Mutual offer a plethora of options to help save on auto insurance quotes for low-income families.
Just be upfront with your potential insurance representative about your low-income status and see what they can do for you. An agent would rather make less commission than no commission at all.
Now that you’ve learned about auto insurance company for low-income families, type your ZIP code into our free and helpful tool below to find the cheapest auto insurance quotes in your area.