Affordable Auto Insurance Quotes for Low-Income Individuals (2025)

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.

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

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.

Average Annual Auto Insurance Rates by Company

Company	Average Annual Auto Insurance Rates
	$4,533
	$3,699
	$3,910
	$3,074
	$5,296
	$3,187
	$3,935
	$2,731
	$3,729
	$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.

Car Insurance Discounts Available by Company

Discount Name
Adaptive Cruise Control	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Adaptive Headlights	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Anti-lock Brakes	10%	✓	✓	5%	5%	5%	✓	5%
Anti-Theft	10%	✓		23%	20%	25%	✓	15%
Claim Free	35%	✓	✓	26%	✓	10%	✓	15%	23%	12%
Continuous Coverage		✓	✓		✓	✓	✓	✓	15%	✓
Daytime Running Lights	2%		✓	3%	5%	5%	✓	✓
Defensive Driver	10%	10%	✓	✓	10%	5%	10%	5%	10%	3%
Distant Student	35%	✓	✓	✓	✓	10%	✓		7%
Driver's Ed	10%	✓	✓	✓	10%	✓	10%	15%	8%	3%
Driving Device/App	20%	40%	✓	✓	30%	40%	20%	50%	30%	5%
Early Signing	10%	✓	✓	✓	✓	8%	✓	✓	10%	12%
Electronic Stability Control	2%	✓	✓	✓	5%		✓	✓	✓	✓
Emergency Deployment	✓	✓	✓	25%	✓	✓		✓	✓	✓
Engaged Couple	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Family Legacy	✓	✓	✓	✓	✓	✓	✓	✓	✓	10%
Family Plan	✓	✓	✓	✓	✓	25%	✓	✓	✓	✓
Farm Vehicle	10%	✓	✓		✓	✓		✓	✓	✓
Fast 5	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Federal Employee	✓	✓		12%	10%	✓		✓	✓	✓
Forward Collision Warning	✓	✓	✓	✓	5%		✓	✓	✓	✓
Full Payment	10%	✓	✓		$50	✓	✓	✓	8%	✓
Further Education	✓	✓			10%	15%		✓		✓
Garaging/Storing	✓	✓	✓		✓	✓	✓	✓		90%
Good Credit			✓	✓	✓		✓		✓	✓
Good Student	20%	✓		15%	23%	10%	✓	25%	8%	3%
Green Vehicle	10%	✓	5%	✓	10%	✓	✓	✓	10%	✓
Homeowner	✓	✓	✓		✓	5%	✓	3%	5%	✓
Lane Departure Warning	✓	✓	✓	✓		✓	✓	✓	✓	✓
Life Insurance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Low Mileage		✓		✓			✓	30%
Loyalty	✓	✓	✓	✓	✓	5%	✓	✓	✓
Married	✓	✓	✓	✓			✓		✓
Membership/Group	✓	✓	✓		10%	7%		✓		✓
Military		✓	✓	15%	4%	✓			✓
Military Garaging	✓	✓	✓	✓	✓	✓	✓	✓	✓	15%
Multiple Drivers	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Multiple Policies	10%	29%	✓	10%	20%	10%	12%	17%	13%
Multiple Vehicles		✓	✓	25%	10%	20%	10%	20%	8%
New Address	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Customer/New Plan	✓	✓	✓	✓		✓	✓	✓	✓	✓
New Graduate	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Vehicle	30%	✓	✓	15%	✓			40%	10%	12%
Newly Licensed	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Newlyweds	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Non-Smoker/Non-Drinker	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occasional Operator	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occupation		✓			10%	15%	✓	✓		✓
On-Time Payments	5%	✓		✓	✓	✓	✓	✓	15%	✓
Online Shopper	✓	✓	✓	✓	✓	✓	7%	✓	✓	✓
Paperless Documents	10%	✓		✓	✓	5%	$50	✓	✓	✓
Paperless/Auto Billing	5%	✓		✓	✓	$30	✓	$20	3%	3%
Passive Restraint	30%	30%		40%		20%	✓	40%
Recent Retirees	✓	✓	✓	✓	4%	✓	✓	✓	✓	✓
Renter	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Roadside Assistance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Safe Driver	45%	✓		15%	✓	35%	31%	15%	23%	12%
Seat Belt Use	✓	✓	✓	15%	✓	✓		✓	✓	✓
Senior Driver	10%	✓		✓	✓	✓	✓	✓	✓
Stable Residence	✓	✓	✓	✓	✓		✓	✓	✓	✓
Students & Alumni	✓	✓	✓		10%	7%		✓	✓	✓
Switching Provider	✓			✓	10%	✓		✓	✓	✓
Utility Vehicle	15%	✓	✓		✓	✓		✓	✓	✓
Vehicle Recovery	10%	✓	✓	15%	35%	25%	✓	5%
VIN Etching	✓	✓	✓	✓	5%		✓	✓
Volunteer	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Young Driver	✓	✓	✓	✓		✓	✓	✓	✓	$75

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.