Government Assistance Programs for Low-Income Drivers in 2024
Government assistance programs for low-income drivers offer assistance with car insurance premiums. Certain car insurance financial assistance programs start at $40/mo. Below, you'll learn how to find cheap government auto insurance for low-income drivers and get emergency help paying car insurance.
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Joel Ohman
Certified Financial Planner
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joe...
Certified Financial Planner
UPDATED: Mar 18, 2024
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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 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: Mar 18, 2024
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 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
- Government auto insurance is a more affordable option for low-income families
- California, New Jersey, and Hawaii have car insurance assistance programs
- If you can’t get government assistance car insurance, you can still find cheap rates
Government assistance programs for low-income drivers can help with car insurance payments if you live in California, New Jersey, or Hawaii. These state-sponsored insurance options offer affordable car insurance for low-income families who need to meet state minimum auto insurance requirements.
Also, if low-income auto insurance assistance programs are unavailable in your state, there are still ways to save on government car insurance for low-income driver and obtain cheap auto insurance rates.
Read on to learn more about government auto insurance for low-income families and how to save on auto insurance for low-income drivers. You can also enter your ZIP code above to compare low-income auto insurance quotes.
Understanding Government Auto Insurance for Low-Income Families
Some may wonder, “How can I get low-income car insurance near me?” If you need car insurance, help paying for premiums is available. The only states offering government help with car insurance costs are California, New Jersey, and Hawaii.
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Government car insurance programs cater to low-income individuals and families who can’t afford traditional auto insurance.
Government Auto Insurance for Low-Income Drivers in California
If you reside in California, you may be eligible for California’s Low Cost Auto (CLCA) program to get emergency help paying car insurance. To benefit from California’s program, you must meet the following requirements:
- Be a California resident
- Own a car with a value of $25,000 or less
- Have maintained continuous liability coverage for the past six months
- Have a household income that falls within the program’s income guidelines
- Clean driving record
- Possess a valid California driver’s license
The CLCA program only offers liability auto insurance, so it may not be the best option for drivers who wants a more comprehensive policy, such as full coverage auto insurance.
Government Car Insurance for Low-Income Drivers in New Jersey
New Jersey’s Special Automobile Insurance Policy (SAIP) program offers affordable government car insurance for low income in NJ. According to New Jersey’s Department of Banking and Insurance, you must meet the following requirements to qualify:
- Be a New Jersey resident
- Be enrolled in Medicaid with hospitalization coverage
- Have a valid New Jersey driver’s license or permit
The SAIP program pays for medical expenses and accidents involving uninsured motorists. However, it does not cover damage to your vehicle or injuries to passengers in your car. The policy costs $40 monthly.
Government Car Insurance for Low-Income Drivers in Hawaii
As a low-income driver in Hawaii, you may qualify for the Aged, Blind, and Disabled (AABD) program, which offers government assistance car insurance. According to Hawaii’s Department of Human Services, to qualify, you must:
- Be a Hawaii resident
- Have a valid Hawaii driver’s license
- Be enrolled in Medicaid
- Be 65 years of age or older, blind, or disabled
- Have income below 34% of the federal poverty level
Wondering how to get free car insurance in Hawaii? In some cases, you could also get free auto insurance for low-income drivers in Hawaii, but you must qualify.
Note that the AABD program only offers basic liability coverage to drivers seeking government assistance for car insurance rates. However, it sometimes provides coverage for vehicle damage. Read more about the best property damage liability auto insurance companies.
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Cost of Regular Auto Insurance for Low-Income Families
There are various factors that affect auto insurance rates greatly, such as:
- Driving record
- Car type
- Driver’s age
- Location
- Coverage types
It’s important to note that these averages are just estimates, and the amount you pay for government-assisted car insurance rates may vary.
Other Opportunities for Low-Income Drivers to Save on Auto Insurance
If you don’t qualify for government assistance programs or can’t find an affordable policy, there are still some options to get cheap car insurance for low-income drivers.
Here are some potential options for saving on car insurance:
Shop Around
As anyone who has ever shopped for auto insurance knows, there can be a wide range of prices from the best auto insurance companies.
However, remember that the lowest price is not always the best deal. Several factors go into setting rates, so getting quotes from several companies is imperative. For example, one company may offer a lower rate for a particular driver, while another may offer a better overall value.Michelle Robbins Licensed Insurance Agent
Always read the fine print and ensure the policy covers what you need.
Consider Buying Usage-Based Auto Insurance
Pay-per-mile insurance is usage-based auto insurance that charges drivers based on the number of miles driven. This type of auto insurance can be a good option for infrequent or occasional drivers, who may find that traditional auto insurance policies are too expensive. For example, a driver who only drives a few hundred miles per year may find that pay-per-mile insurance is cheaper than a standard policy.
Apply for Common Car Insurance Discounts
As a low-income driver, inquire about any potential auto insurance discounts that may be available. Common car insurance discounts include:
- Safe driver discount: This discount is available for drivers with a clean driving record.
- Bundling discount: This discount applies if you purchase an additional insurance policy from the same company.
- Vehicle safety discount: If your car has safety features installed, you’re likely to get a discount.
Other common auto insurance discounts include:
- Good student
- Anti-theft
- New car
- Defensive driver
- Paperless
- Senior driver
- Occupational
As you can see, shopping for eligible discounts is a great way to get cheap car insurance for low income. Read more about how to get an electronic automatic billing auto insurance discount.
Own a Car That’s Inexpensive to Insure
The most impactful way to save on car insurance for low-income individuals is to drive an inexpensive car. Examples include:
- Older cars: A car’s value depreciates over time, meaning that older cars are generally less expensive to insure.
- Smaller cars: Smaller cars typically have a lower replacement value and, therefore, a lower insurance cost.
- Cars with a good safety record: Cars with a history of fewer accidents or theft claims are less expensive to insure.
- Cars with a low theft rate: Cars that have fewer thefts have lower insurance rates.
Learn more about auto insurance for older cars.
Reduce the Number of Cars You Own
The number of cars and drivers on a policy often dictates the auto insurance rates. Owning and insuring multiple cars can significantly increase the cost.
One option for reducing insurance costs may be to sell or get rid of a second car and become a single-car household. Moreover, this can help reduce transportation expenses, like gas and maintenance.
Reduce Your Coverage
Another potential option for reducing auto insurance costs is to reduce your coverage. However, carefully consider the risks and ensure that you are not compromising your financial security.
For instance, while dropping collision auto insurance coverage on an older car with a low value may save on insurance costs, it may not be worth it if you’re at risk of being unable to cover the cost of repairs in the event of an accident.
Avoid Letting Your Insurance Lapse
Maintaining continuous auto insurance coverage is vital for several reasons. For one, driving without auto insurance is illegal in most states. However, beyond that, letting your insurance lapse can lead to much higher rates when you restart your policy.
Insurance companies view lapsed coverage as a risk since you were willing to drive without insurance at one point. As a result, you’ll likely pay a significantly higher rate than someone who has maintained continuous coverage. You may also require high-risk auto insurance.
If you’ve let your previous insurance policy lapse, you may have difficulty obtaining proof of prior insurance when you reapply. So if you don’t want to see your rates skyrocket, it’s best to avoid letting your car insurance lapse.
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More About Government Auto Insurance Assistance Programs for Low-Income Drivers
Need help paying car insurance? Government car insurance for low-income families may be the best and most affordable option if need car insurance payment assistance. State-sponsored assistance programs offer cheap auto insurance to those who qualify based on their income.
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— AutoInsurance.org (@AutoInsurance) June 20, 2023
You can also find other ways to get low-income car insurance by shopping around, considering pay-per-mile policies, applying for discounts, and reducing your coverage. Also, avoid letting your insurance lapse, as this will result in much higher rates when you reinstate your policy. Read more about the best auto insurance companies that don’t penalize for a lapse in coverage.
While there isn’t a government car insurance company, you can shop around and look for discounts from other providers if you can’t get government auto insurance. Enter your ZIP code into our free quote comparison tool below to get started on finding cheaper rates.
Frequently Asked Questions
How do I find emergency help paying car insurance near me?
The application process varies depending on where you live and the car insurance assistance program in your state.
Generally, you’ll proof of income and a valid driver’s license. You may also need to provide the make and model of your vehicle. Read more about what the difference is between car make and car model.
Is there government assistance for car insurance in all states?
You might be wondering how to get help with car insurance near you. Unfortunately, not all states offer a auto insurance assistance program for low-income individuals. These government programs are only available in California, New Jersey, and Hawaii.
Is there free car insurance for low-income drivers?
Yes, some drivers in Hawaii may qualify for free government car insurance.
Is there low-income car insurance in Georgia?
Georgia doesn’t offer a publicly financed auto insurance program. However, if you need low-income car insurance in GA, some companies may offer car insurance help.
Companies, such as Geico auto insurance, offer low-income discounts to those who meet specific requirements.
Another option for Georgia’s low-income earners is joining a group auto insurance program offering lower rates. Some examples include groups for teachers, nurses, military members, and government employees.
Read More: Georgia Auto Insurance
Does DHS help with car insurance?
Need help paying auto insurance? The Hawaii Department of Human Services (DHS) offers free government car insurance to certain drivers. Unfortunately, no other DHS offers help with paying car insurance.
However, car insurance for EBT holders could be cheaper since they may qualify for government-funded car insurance.
Are there charities that help pay car insurance premiums?
Yes, there are some charity programs that help with car insurance. You can learn more about certain charities and non-profit organizations that help with bills here.
Can you get low-income car insurance in AZ?
While Arizona doesn’t have government-sponsored help paying auto insurance for low-income families, you can shop around for coverage from the cheapest companies for Arizona auto insurance.
Can you get low-income car insurance in Texas?
There’s no program offering government assistance paying car insurance in Texas, but you can compare quotes from various companies to find the best Texas auto insurance.
Can you get low-income car insurance in MN?
There’s no low-income or welfare car insurance programs in Minnesota, but shopping around with top providers is how you’ll find the cheapest Minnesota auto insurance rates.
Does Oregon low-income car insurance exist?
Oregon doesn’t have a government program to help you pay for auto insurance, but you can find cheap rates by shopping around.
Read More: Oregon Auto Insurance
Can I get low-income car insurance in Nevada?
There isn’t a Nevada government assistance program for car insurance, but compare rates from the top Nevada auto insurance companies for cheap coverage.
Is there low-income car insurance in Washington state?
Though you can’t get Washington auto insurance through the government, comparing quotes from the best companies will help you find cheap premiums.
Can I get low-income car insurance in Florida?
Florida doesn’t have a government auto insurance program.
Read More: Cheapest Auto Insurance Companies in Florida
Can I get DMV low-income car insurance?
Some states, such as Hawaii, New Jersey, and California, offer a government-sponsored car insurance program, but it’s not through the DMV.
How do I get cheap car insurance for SNAP recipients?
While there is no EBT car insurance program, some states offer government assistance to low-income drivers struggling to pay premiums.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Joel Ohman
Certified Financial Planner
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joe...
Certified Financial Planner
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.