Best 9 Auto Insurance Companies for Low-Income Individuals 2023

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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.

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.

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

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.

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 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.

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.

Best 9 Auto Insurance Companies for Low-Income Individuals 2023

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