Affordable Auto Insurance Quotes for Low-Income Individuals (2023)
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.
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Leslie Kasperowicz
Farmers CSR for 4 Years
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...
Farmers CSR for 4 Years
UPDATED: Nov 27, 2022
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.
UPDATED: Nov 27, 2022
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.
On This Page
- 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 companies 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 public auto insurance. These are:
- California
- New Jersey
- Hawaii
CLCA, or, the California Low-Cost Automobile insurance program, offers its insured both liability auto insurance and underinsured motorist protection.
How does one become eligible for CLCA? The applicant must own an automobile worth less than $25,000, have a clean 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.
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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.
| Company | Average Annual Rates for Minimum Coverage |
|---|---|
| Allstate | $667 |
| Farmers | $806 |
| Geico | $474 |
| MetLife | $893 |
| Nationwide | $667 |
| Progressive | $674 |
| State Farm | $606 |
| Travelers | $738 |
| USAA | $373 |
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 minimum auto insurance coverage that’s needed to operate a motor vehicle legally and safely.
| Company | Average 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 |
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 lower your auto insurance rates? 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 auto insurance 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.
| Discounts | 21st Century | AAA | Allstate | American Family | Ameripris | Amica | Country Financial | Esurance | Farmers | Geico | Liberty Mutual | MetLife | Nationwide | Progressive |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | ✓ | ✗ | ✗ | ✗ | ✗ | ✗ | ✓ | ✗ | ✗ | ✗ | ✓ | ✗ | ✗ | ✓ |
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.
Compare over 200 auto insurance companies at once!
Secured with SHA-256 Encryption
Leslie Kasperowicz
Farmers CSR for 4 Years
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...
Farmers CSR for 4 Years
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.