Cheap Car Insurance for Low-Income Drivers
- State Farm is the most affordable large car insurance company.
- Regional companies like Erie also often have low-cost auto insurance.
- California, Hawaii and New Jersey are the only states with assisted low-income car insurance.
Government assistance for low-income car insurance
California, Hawaii and New Jersey are the only states with government-assisted low-income car insurance. It’s for drivers who already get Medicaid, Supplemental Nutrition Assistance Program (SNAP) benefits and/or other assistance.
California
The California Low Cost Auto (CLCA) Insurance Program provides affordable liability-only coverage. You can sign up on the CLCA website or by phone.
- Rates: $199 to $920, depending on your county
- Coverage: Basic liability only
- Eligibility: You need to have a good driving record and meet income limits. These range from about $39,000 for an individual to $94,000 a year for a family of five.
Hawaii
Hawaii offers free no-fault insurance to drivers who qualify for other government assistance. The program usually only insures one car per household. You can sometimes get it for a second vehicle that you need for work or medical appointments.
- Rates: Free
- Coverage: Minimum no-fault auto insurance
- Eligibility: You can get it if you already receive SNAP benefits or other government aid. You have to get a certificate of eligibility from the Department of Human Services. Most island insurance companies accept these certificates.
New Jersey
New Jersey’s Special Automobile Insurance Policy provides basic no-fault insurance to low-income families.
- Rates: $365 a year
- Coverage: Minimum personal injury protection only
- Eligibility: Available to drivers already enrolled in Medicaid with hospitalization benefits. Most insurance agencies offer it. You just have to show your Medicaid card to an insurance agent to get started.
How to get low-income car insurance
With limited government assistance, it’s important to shop around for cheap low-income car insurance.
Your rate depends on factors like your driving record, location and vehicle. In most states, insurance companies also check your credit history.
Each company uses a different system to set your car insurance rate. One may give you a much cheaper rate than the others do.
Comparing car insurance quotes helps you find the cheapest company for your situation.
Most affordable car insurance companies
State Farm is generally the most affordable large car insurance company. It charges an average of $661 a year, or $55 a month, for liability Liability insurance covers injuries and property damage you cause to others. It’s required by law in almost every state. . Its full coverage Full coverage includes collision and comprehensive, which cover your own car for damage and theft. rates average $134 a month.
However, you may find cheaper car insurance from a regional company in your area. Erie, Farm Bureau and Auto-Owners have cheaper liability quotes than State Farm, for example. These smaller companies are not available in every state.
Affordable car insurance companies
| Company | Annual liability | Annual full coverage | LendingTree score | |
|---|---|---|---|---|
 | Erie | $516 | $1,375 |  |
 | Farm Bureau | $624 | $1,860 | |
 | Auto-Owners | $632 | $1,740 |  |
 | State Farm | $661 | $1,604 |  |
 | Country Financial | $679 | $1,491 | |
 | American Family | $751 | $2,019 | |
 | Travelers | $792 | $1,806 | |
 | Geico | $797 | $2,109 |  |
 | Progressive | $801 | $2,078 | |
 | Nationwide | $1,024 | $2,402 |  |
Low-cost car insurance companies by state
Companies with the lowest car insurance costs vary by state. State Farm has the cheapest liability insurance in 16 states. Geico and Erie have the cheapest liability insurance in seven states each.
State Farm has the cheapest full coverage in 21 states. Travelers has the lowest cost for full coverage in eight states.
Farm Bureau has the most affordable liability insurance and full coverage in Texas and four other states.
Cheapest car insurance by state
| State | Liability | Annual rate | Full coverage | Annual rate |
|---|---|---|---|---|
| Alabama | State Farm | $432 | State Farm | $1,231 |
| Alaska | Geico | $548 | State Farm | $1,383 |
| Arizona | State Farm | $711 | State Farm | $1,652 |
| Arkansas | State Farm | $414 | State Farm | $1,359 |
| California | Geico | $505 | Geico | $1,486 |
| Colorado | State Farm | $689 | State Farm | $1,948 |
| Connecticut | Travelers | $569 | Travelers | $1,183 |
| Delaware | Travelers | $914 | State Farm | $1,787 |
| Florida | Geico | $468 | State Farm | $1,957 |
| Georgia | Farm Bureau | $569 | Farm Bureau | $1,334 |
| Hawaii | Geico | $276 | Geico | $829 |
| Idaho | State Farm | $233 | State Farm | $658 |
| Illinois | Country Financial | $468 | Country Financial | $1,232 |
| Indiana | Auto-Owners | $424 | Travelers | $1,272 |
| Iowa | Progressive | $251 | State Farm | $1,050 |
| Kansas | Progressive | $472 | Travelers | $1,405 |
| Kentucky | Farm Bureau | $500 | Farm Bureau | $1,689 |
| Louisiana | Farm Bureau | $690 | Farm Bureau | $1,746 |
| Maine | MMG | $407 | Travelers | $938 |
| Maryland | State Farm | $742 | State Farm | $1,408 |
| Massachusetts | Geico | $430 | Geico | $1,320 |
| Michigan | Auto-Owners | $949 | Progressive | $1,906 |
| Minnesota | State Farm | $475 | Travelers | $1,269 |
| Mississippi | State Farm | $360 | State Farm | $1,144 |
| Missouri | American Family | $546 | American Family | $1,645 |
| Montana | State Farm | $208 | State Farm | $912 |
| Nebraska | Progressive | $382 | State Farm | $1,391 |
| Nevada | Travelers | $980 | Travelers | $2,005 |
| New Hampshire | Hanover | $187 | Hanover | $681 |
| New Jersey | Geico | $500 | Geico | $1,163 |
| New Mexico | State Farm | $434 | State Farm | $1,464 |
| New York | NYCM | $475 | Progressive | $1,201 |
| North Carolina | Erie | $353 | Erie | $789 |
| North Dakota | State Farm | $371 | State Farm | $1,333 |
| Ohio | Erie | $340 | Geico | $690 |
| Oklahoma | State Farm | $440 | State Farm | $1,541 |
| Oregon | State Farm | $678 | State Farm | $1,302 |
| Pennsylvania | Erie | $341 | Travelers | $1,216 |
| Rhode Island | Travelers | $729 | Travelers | $1,894 |
| South Carolina | Auto-Owners | $634 | Auto-Owners | $1,460 |
| South Dakota | State Farm | $284 | State Farm | $1,289 |
| Tennessee | Erie | $468 | Erie | $1,379 |
| Texas | Farm Bureau | $404 | Farm Bureau | $1,036 |
| Utah | Auto-Owners | $813 | Progressive | $1,665 |
| Vermont | State Farm | $251 | State Farm | $714 |
| Virginia | Farm Bureau | $504 | Farm Bureau | $1,256 |
| Washington | State Farm | $441 | State Farm | $1,180 |
| Washington, D.C. | Erie | $794 | Geico | $2,095 |
| West Virginia | Erie | $436 | Erie | $1,361 |
| Wisconsin | Erie | $343 | Erie | $1,236 |
| Wyoming | Geico | $212 | State Farm | $1,196 |
Best discounts for low-income car insurance
Discounts for bundling and using a safe-driving app are easy ways to get cheaper low-income car insurance. Consider pay-per-mile insurance if you don’t drive much.
- Bundling: Most car insurance companies give you a big discount for getting your home or renters insurance from them, too. It’s also often convenient to have the same insurance agent for multiple policies.
- Safe driving apps: Several companies give you a discount for joining their safe driving program. Most use a smartphone app to monitor how safely you drive. You get discounts based on how safely you drive. If you avoid excessive speeds, hard braking and distracted driving, you’re likely to save money.
- Pay-per-mile insurance: Allstate, Nationwide and Lemonade are among the companies that offer pay-per-mile insurance. Your rate is based on the number of miles you drive. This is a good way to save money if you don’t have a long daily commute.
Low-income car insurance requirements
Low-income drivers need to meet the same insurance requirements as everyone else. The legal requirements vary by state. Most states require you to have liability car insurance. Several states also make you get uninsured motorist Uninsured motorist covers you and your passengers for injuries caused by a driver with no insurance. It’s required in about 20 states and optional everywhere else. coverage (UM) and/or personal injury protection PIP covers injuries to you and your passengers, whether you or another driver causes the accident. It also covers lost wages and certain other expenses. (PIP).
If you have a car loan, your lender will make you add collision Collision covers damage to your car from a collision with another vehicle or object. and comprehensive Comprehensive covers your car for theft and damage from non-collision causes, like fire, flood and vandalism. to your policy. You can save money on car insurance by choosing higher deductibles.
Collision and comprehensive cover your car up to its depreciated value at the time of a crash or theft. It’s usually worth having for any car more than $5,000, even if you don’t have a loan. You may not need it if your car’s value is less than this amount.
Frequently asked questions
California, Hawaii and New Jersey are the only states with government car insurance for low-income drivers.
Your income does not directly impact your car insurance rate. Insurance companies check your credit for your payment history and borrowing habits, but not your income. You may pay more for car insurance if you’ve missed payments or maxed out your credit limits. Some consumer groups contend that the use of credit scores for insurance rates unfairly harms low-income drivers.
Citizens United Reciprocal Exchange (CURE) is a not-for-profit car insurance company serving Michigan, New Jersey and Pennsylvania. The company doesn’t charge you more for having bad credit.