Cost-Effective Car Insurance For Low Income Drivers
Finding companies that offer low income auto insurance quotes could be highly challenging if you decide to go about the task on your own. But when you seek specialist advice, things may turn out to be less stressful. It is possible to find insurers which provide low cost car insurance covers to drivers that have poor monthly incomes. Our experts have found out that the USH&C is the cheapest auto insurance company for low income drivers with monthly premiums hovering around $110 every month for full coverage. Besides, by maintaining good driving record, comparing several quote estimates and qualifying for discounts, you can save some additional money on your premium.
Here is a list of companies that extend cheap auto insurance covers to low income drivers.
| Name of Insurance Company | Monthly Insurance Rates for Federal Employees |
|---|---|
| USH&C | $110 |
| Amigo USA | $116 |
| Kemper | $134 |
| Travelers | $153 |
| Clearcover | $161 |
| National General | $165 |
| AssuranceAmerica | $167 |
| Nationwide | $186 |
| Freedom National | $217 |
| Bristol West | $227 |
| Mercury | $229 |
| Liberty Mutual | $246 |
| The General | $279 |
In states like California, Hawaii, Maryland and New Jersey, special programs are in place for helping drivers with low income to pay for auto insurance. To learn more about your chances of getting cheaper car insurance for low income drivers, talk to one of our local experts today! Apply online now!
Here Are 4 State Sponsored Options On Car Insurance For Low Income Adults
Although California, Hawaii, Maryland and Jersey provide state sponsored programs that enable low income drivers to get their cars insured at affordable insurance rates, they have few basic eligibility requirements which drivers must fulfil to qualify for these government initiatives. Here is some vital information about the same that you may find useful if you are a resident low-income driver of one of these states.
California
California Low Cost Automobile (CLCA) Program – Drivers with low incomes can sign up for this CLCA program if:
- Annual income is less than 250% of federal poverty level
- Market worth of car to be insured is not more than $25,000
- Drivers have valid driver’s license and clean driving histories
Liability insurance coverage for third party bodily injuries and property damages is provided under the CLCA program while uninsured/underinsured motorist and medical payments features are optional.
Hawaii
Assistance to the Aged, Blind and Disabled (AABD) Program – Drivers with low incomes can secure affordable auto insurance coverage if they:
- Are over 65 years old
- Fall within the state’s Social Security Administration’s definition of blind or disabled
- Have annual income that is less than 34% of federal poverty level of 2006
- Are not receiving of more than $2,000 per person or $3,000 per couple
Maryland
Maryland Automobile Insurance Fund (MAIF) – Drivers with low incomes that reside in Maryland can get cheap car insurance coverage under MAIF or Maryland Auto Insurance Program if they:
- Are over 65 years old
- Have been denied auto insurance by at least two private insurance companies
- Had their car insurance cancelled or failed to renew existing policy for reasons other than non-payment of premium
The MAIF is governed by rules and regulations that are laid down by the Maryland Insurance Commissioner. And for vehicle registration in the state, drivers need to make sure that they have purchased state prescribed minimum liability coverage.
New Jersey
Special Automobile Insurance Policy (SAIP) – This is also referred to as the New Jersey Low Income Car Insurance Program. The eligibility conditions are highly lenient and drivers with low incomes can enrol for this program if they:
- Have valid driver’s license
- Are already enrolled for Federal Medicaid along with Hospitalization
The SAIP is distinctly different from other auto insurance plans in the sense that it only pays costs for emergency medical treatments if the low income driver suffers from bodily injuries due an accident. The insurance doesn’t cover liability, property or vehicle damages.
Learn How To Reduce Premium On Car Insurance For Low Income Individuals
- Pay Annual Premium In Full : It is understandable that with a low monthly income, it is hard to pay annual car insurance premium in lump sum at one go. Majority of the drivers that have low incomes prefer to get their vehicles insured with favourable monthly payment plans. Nevertheless, if you can manage to pay the entire annual premium amount in lump sum, you might end up saving about 5% to 15% money. In monthly premium payment plans, insurers add interests and other fees to the premium instalments thereby making the proposition highly expensive.
- Ask About Premium Discounts : Majority of the companies that offer low cost car insurance for low income families may also provide different types of discounts on premium to qualified drivers. You can determine your eligibility to get a discounted car insurance package and save extra.
- Enroll For Defensive Driver Training : By successfully passing out a defensive driver’s training course from a government approved institute, you can earn a special premium discount which can help you to save additional precious dollars. Besides, such a move will also enable you to be a responsible driver on road by obeying traffic rules and regulations.
- Maintain A Clean Driving Record : Multiple traffic tickets on your driving record can lead to hike in premium. So, make sure that you settle all traffic tickets and improve your driving slate as it will help in qualifying for low sustainable car insurance rates.
Companies may also offer discount on premium if you indicate to them that you will be driving fewer miles throughout the year. It reduces their coverage risks and you will be rewarded with low vehicle insurance rates. To learn more about reducing premium, it is worthwhile to talk to talk to an expert. Aliasinsurance.com can assist you to fix free consultation with a certified and experienced independent agent to provide answers for all your questions. Contact us today!
Check Eligibility To Get Discounts On Car Insurance For Low Income Families
It will be easier for you to get low income full coverage auto insurance policy quote if you can check your eligibility to qualify for a discounted package. Most of the companies offer an array of discounts on premium to qualified drivers regardless of the status of their incomes. You can take advantage of some of these financial concessions for saving money on your car insurance without compromising on the coverage levels. Here are few popular premium discounts that insurers normally provide to eligible drivers.
- Safe driver discount : If you have maintained a clean driving slate for the last 3 to 5 years that is free of any accidents or traffic violations (tickets) then you can obtain a safe driver discount. To improve your chances of getting this type of a discount, you can also take up a defensive driver’s training course from some government accredited institution. It will make you a responsible driver.
- Drive few miles annually :One of the ways to secure affordable car insurance for low income families is to indicate to your insurer that you will be driving less number of miles throughout the year. Majority of the insurers may provide you a Telematics policy if you drive less than 12,000 miles annually. A black box type device may be installed in your car for monitoring the exact miles that you drive before passing on the discount on premium.
- Good student discount : Teen and young drivers, who are high school or college students, can get a special discount on premium if they have maintained an average “B” grade or GPA 3.0 and above in their academics on a consistent basis for the last 3 years. This can be a great way to reduce vehicle insurance cost for youngsters.
- Bundling of insurance covers :Insurers may offer an extra premium discount on low income car insurance to drivers if they insure car and home with them. Thus, by bundling both these policies, you can save money and this way you may have to deal with only one insurance company.
- Safety features in vehicle : You could be entitled to save more on car insurance despite having low income if you are driving a safer vehicle. Cars with safety features such as side airbags, anti-lock braking system, anti-theft siren, etc. qualify for this discount. In addition, more concession is almost guaranteed if the vehicle that you are driving enjoys good safety and crash test ratings.
- Pay yearly premium in full : If you pay the entire annual premium in lump sum at one go then you can save money on interests and other fees which insurers usually add to the monthly instalment plans. Thus, paperless billing or getting quotes online can enable you to sign up for auto insurance coverage can save you precious dollars by paying annual premium automatically from your checking account.
To learn more about securing low income auto insurance for seniors and save money, talk to our competent local expert now!
How Much Coverage On Car Insurance For Low Income Drivers Should I Buy?
When you have a low income, it is always desirable to buy minimum or basic liability insurance cover for third party bodily injuries and property damages as is mandated by your state’s law. It will be the cheapest option for you in the current financial circumstances. Most states require resident drivers to carry $50,000 liability insurance coverage per accident for bodily injuries. Insurers may increase the limit to 50/100/100 later on if you feel that you need more financial protection.
A full coverage auto insurance policy will include comprehensive and collision coverage features that are highly expensive. This type of protection may be needed only if your vehicle is under loan finance or on lease. Companies might charge $300 to $500 extra per year to provide full coverage for cars. But if you are driving an old used car, you may not require both these coverage features and this way you will have the chance to reduce your insurance cost. However, comprehensive and collision coverage features will pay cost of damages that your car incurs post an accident. You can drop these features only if the premium is more than 10% of the payout cost.
The below table may give you an idea regarding average car insurance cost by coverage levels.
| Company | State Minimum | Liability-Only | Full Coverage Policy with |
|---|---|---|---|
| USAA | $373 | $487 | $817 |
| GEICO | $474 | $626 | $941 |
| State Farm | $606 | $794 | $1,114 |
| Nationwide d> | $667 | $799 | $1,275 |
| Allstate | $667 | $868 | $1,235 |
| Progressive | $674 | $887 | $1,227 |
| Travelers | $738 | $967 | $1,421 |
| Farmers | $806 | $992 | $1,462 |
| MetLife | $893 | $1130 | $1,622 |
Calculate The Cost Of Car Insurance For Low Income People With Help Online
In most states, insurers don’t consider driver’s monthly income for calculating auto insurance rates. Hence, you need not worry about your income while getting your car insured as far as you meet your state’s minimum qualification criteria. For drivers that have income levels which are above the federal poverty level, the premiums are going to be higher. But carrying valid car insurance coverage is a mandatory requirement by national law and so, it is vital that you have at least basic liability car coverage as is prescribed by your state’s driving and insurance law. In addition, you also must make sure that there is no lapse in your auto insurance coverage or else you may be tagged as a high risk driver by companies. This can lead to unnecessary hike in premium in the years to come.
The following table shows how minimum premium rates for car insurance vary by driver budgets.
| Company | Yearly Premium | Percentage of Federal | Percentage of Average U.S. |
|---|---|---|---|
| USAA | $373 | 1.9% | 1.1% |
| GEICO | $474 | 2.5% | 1.4% |
| State Farm | $606 | 3.2% | 1.8% |
| Nationwide | $667 | 3.5% | 2.0% |
| Allstate | $667 | 3.5% | 2.0% |
| Progressive | $674 | 3.5% | 2.0% |
| Travelers | $738 | 3.9% | 2.2% |
| Farmers | $806 | 4.2% | 2.4% |
| MetLife | $$893 | 4.7% | 2.6% |
The federal low income designation for drivers across the United States is $19,140 per year and the average yearly income of drivers across the country is $33,706 per year. From the table it is evident that a driver with federal low income designation ends up paying about 1.9% more of his/her budget for a USSA auto insurance policy. At the same time, a driver who makes average yearly income pays around 1.1% of his/her budget.
However, car insurance providers use different factors for calculation of insurance rates and these include the driver’s age, gender, marital status, exact residential location, driving record and credit history. There may be many more parameters that go into determination of premium and so, for saving money, it is important that you shop extensively and compare free quote estimates offered by several insurers to find the best and the cheapest car insurance coverage with low income.
FAQs
Yes. It is perfectly possible to get car insurance discounts even if you are a low income driver. Most of the companies provide premium discounts to drivers in the form of good student discount, low mileage discount, safe driver discount and safer car discount.
There could be different ways to get cheap car insurance with a low income. Extensive shopping can save you hundreds of dollars and additional money can be saved by qualifying for various discounts on premium. Also check if you can get a special auto insurance policy for low income drivers in your state.
Aliasinsurance.com is the most reliable place to locate cheap low income driver’s vehicle insurance policies. Our free online expert services and tools can enable you to find the best and cheapest quote within a span of just few minutes.
About The Author
Andy Walker is a freelance content writer who specializes in writing for insurance and finance related niches. He has years of experience in this field and has written extensively on a variety of topics. Andy’s work is always highly polished and well-researched, ensuring that his clients are always happy with the results.