Best Auto Insurance for Low-Income Individuals (2021)

Those who are looking to buy auto insurance for low-income individuals have some things to be aware of. Three states offer auto insurance for low-income individuals. However, outside of New Jersey, Hawaii, and California, low-income drivers will need to procure a standard auto insurance policy, though they can consult with an insurance representative to gain insight on how many discounts they can stack up. Always make sure to compare rates from at least three companies.

Free Auto Insurance Comparison

 Secured with SHA-256 Encryption

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

Full Bio →

Written by

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

Full Bio →

Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: Sep 9, 2021

Advertiser Disclosure

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 insurance industry 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.

What You Should Know

  • Three states offer auto insurance options to low-income individuals
  • To drive with substandard coverage is not only dangerous but possibly illegal
  • Stack discounts to save as much as you possibly can on an expensive policy

Auto insurance is an expensive financial burden that only proves more cumbersome when it comes to auto insurance for low-income individuals. Worse is the fact that only three states offer low-income car insurance.

How do you find the best auto insurance company for low-income individuals? We’re going to go into detail on the best income-based auto insurance options, where you can get them, and how much you’ll need.

Before learning more about affordable auto insurance for low-income individuals, type your ZIP code into our free tool above to find the most affordable auto insurance quotes for low-income individuals in your area.

What are the states that offer auto insurance for low-income individuals?

There are currently but three states that offer government-sponsored auto insurance. These are:

  • California
  • New Jersey
  • Hawaii

CLCA, or, the California Low-Cost Automobile insurance program, offers its insured both liability and underinsured motorist protection.

How does one become eligible for CLCA? The applicant must own an automobile worth less than $25,000, have a good driving record, and be within 250% of the federal poverty limit.

Hawaii’s program has a far more limited level of availability than CLCA. Its program is part of its Assistance to the Aged, Blind and Disabled (AABD) services.

What does this AABD service do? It provides free auto insurance to those with a disability.

Is there anyone else who can receive this free coverage? Yes, those who are 65 or older and those with an income level 34% below the established federal poverty line.

Lastly, New Jersey has the Special Automobile Insurance Policy (SAIP). This exclusively covers medical costs should you be in an accident. It does not cover any cost for which you are liable or the cost of damage to your vehicle.

How does one become eligible for this very minimal form of coverage? They simply must be enrolled in Medicaid.

Let’s move on to what you do if you do not live in one of these three states.

Compare over 200 auto insurance companies at once!

 Secured with SHA-256 Encryption

How much is auto insurance for low-income individuals?

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 costly policies, let’s see just how costly they are.

For the sake of simplicity, the figures shown are for minimum coverage.

Average Annual Minimum Coverage Car Insurance That Is Income-Based by Company
CompanyAverage Annual Rates for Minimum Coverage
Allstate$667
Farmers$806
GEICO$474
MetLife$893
Nationwide$667
Progressive$674
State Farm$606
Travelers$738
USAA$373
Get Your Rates Quote Now
Compare RatesStart Now →

As you can see, there are options out there for less than $1,000 annually. However, this is basic liability coverage at best and will do very little to protect you should the worst happen and you get into 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.

Average Annual Auto Insurance Rates by Company
CompanyAverage Annual Auto Insurance Rates
Allstate$4,533
American Family$3,699
Farmers$3,910
GEICO$3,074
Liberty Mutual$5,296
Nationwide$3,187
Progressive$3,935
State Farm$2,731
Travelers$3,729
USAA$2,489
Get Your Rates Quote Now
Compare RatesStart Now →

These rates are far more expensive,. The reality is that, no matter who you are, auto insurance rates for low-income individuals are going to cost thousands of dollars per year.

So, how do you decrease the cost of this coverage? What should you do if you cannot afford your auto insurance bill?

Auto Insurance Discounts for Low-Income Individuals

Finding affordable auto insurance for low-income single mothers or others struggling financially is made easier through discounts.

All of the major insurers offer discounts. Not only do they offer discounts, but they offer such a wide array of them that there should be at least one that’s applicable to any walk of life.

Let’s take a look at a table that will shed some light on the discounts available from major insurers. Remember, when speaking with an agent, always inform them of your personal situation and get discounts.

Auto Insurance Discounts Available by Company
Discounts21st Century Discounts OfferedAAA Discounts OfferedAllstate Discounts OfferedAmerican Family Discounts OfferedAmeriprise Discounts OfferedAmica Discounts OfferedCountry Financial Discounts OfferedEsurance Discounts OfferedFarmers Discounts OfferedGeico Discounts OfferedLiberty Mutual Discounts OfferedMetLife Discounts OfferedNationwide Discounts OfferedProgressive Discounts Offered
Adaptive Cruise Control
Adaptive Headlights
Anti-lock Brakes
Anti-Theft
Claim Free
Continuous Coverage
Daytime Running Lights
Defensive Driver
Distant Student
Driver's Ed
Driving Device/App
Early Signing
Electronic Stability Control
Emergency Deployment
Engaged Couple
Family Legacy
Family Plan
Farm Vehicle
Fast 5
Federal Employee
Forward Collision Warning
Full Payment
Further Education
Garaging/Storing
Good Credit
Good Student
Green Vehicle
Homeowner
Lane Departure Warning
Life Insurance
Low Mileage
Loyalty
Married
Membership/Group
Military
Military Garaging
Multiple Drivers
Multiple Policies
Multiple Vehicles
New Address
New Customer/New Plan
New Graduate
Newer Vehicle
Newly Licensed
Newlyweds
Non-Smoker/Non-Drinker
Occasional Operator
Occupation
On Time Payments
Online Shopper
Paperless Documents
Paperless/Auto Billing
Passive Restraint
Recent Retirees
Renter
Roadside Assistance
Safe Driver
Seat Belt Use
Senior Driver
Stable Residence
Students & Alumni
Switching Provider
Utility Vehicle
Vehicle Recovery
VIN Etching
Volunteer
Young Driver
Get Your Rates Quote Now
Compare RatesStart Now →

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 individuals.

Just be up front 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.

Now that we’ve guided you through auto insurance for low-income individuals, type your ZIP code into our free and helpful tool below. You’ll find cheap car insurance in your local area.

Free Auto Insurance Comparison

Compare over 200 auto insurance companies at once!

 Secured with SHA-256 Encryption