Government Assistance Programs for Low-Income Drivers in 2024

Low-Income Families Can Get Help Paying for Car Insurance

Some may wonder, “How can I get low-income car insurance near me?” If you need car insurance, help paying for premiums is available. California, New Jersey, and Hawaii are the only states offering financial assistance for car insurance.

Learn More: Best Auto Insurance for Low-Income Drivers

If you’re looking to get help paying car insurance, you might wonder how much coverage costs through an emergency car payment assistance program. The table below shows the average cost of car insurance assistance for low-income drivers in the states offering it:

Government-Sponsored Auto Insurance Monthly Cost by State

So, while you can’t get free government auto insurance for low-income drivers, 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 (Learn More: Best California Auto Insurance).

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.

To benefit from California’s program, you must be a resident with a clean driving record, have a valid license, and own a car with a value lower than $25,000. You must also meet certain income requirements and have had continuous liability insurance coverage for the past six months.

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 be a New Jersey resident, be enrolled in Medicaid with hospitalization coverage, and have a valid state driver’s license or permit to qualify.

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. This policy costs $48 monthly, offering the best New Jersey auto insurance rates for low-income drivers.

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. If you qualify, this low-income offers some of the best Hawaii car insurance rates, costing around $45 monthly for liability insurance (Learn More: Cheapest Liability-Only Auto Insurance).

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.

Cost of Standard Auto Insurance for Low-Income Families

If you don’t qualify for assistance with your car insurance payment, you can still find affordable coverage with a standard policy by comparing quotes and asking for car insurance discounts.

There are various factors that affect auto insurance rates greatly, such as driving record, car type, driver’s age, gender, location, and coverage types. Check out the table below to compare insurance rates by age and gender:

It’s important to note that these averages are just estimates, and the amount you pay for government-assisted car insurance rates may vary. To get a quote, enter your ZIP code into our free comparison tool below to find the best deal for you.

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.

Always read the fine print and ensure the policy covers what you need. Check out our comprehensive guide titled, “What does an auto insurance policy look like?” for more details.

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. However, if you travel frequently or commute a long distance to work, it may not be right for you.

Apply for Common Car Insurance Discounts

As a low-income driver, inquire about any potential auto insurance discounts that may be available. Check out the table below for a full list of common car insurance discounts you’ll find from the best car insurance companies:

Common Auto Insurance Discounts

Other common auto insurance discounts are good student, anti-theft, new car, defensive driver, paperless, senior driver, and 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.

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 (Learn More: Best Auto Insurance Companies for Multiple Vehicles).

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.

For instance, if you need affordable car insurance for low-income single mothers, getting rid of one car is a possibility to achieve lower rates if you don’t need it. Find cheap auto insurance for single moms here.

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.

To determine if you no longer need collision coverage, compare the cost of your car’s value to your auto insurance premiums, and evaluate your financial ability to pay for repairs out of pocket after an accident.

Generally, you can drop full coverage, which includes collision, when your annual auto insurance premiums exceed 10% of your vehicle’s market value. Speak with your insurance agent to discuss your options.

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.

Check out the table below to see the penalties for driving without insurance coverage in your state:

Penalties for Driving Without Auto Insurance by State

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.

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. For instance, you could save if you purchase an older vehicle with a lower value. Examples of cheap cars to insure are:

• 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 Good Safety Ratings: 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.

Always ask your car insurance provider about any anti-theft or safety insurance discounts you could qualify for because of the car you own. Check out our guide titled “Auto Insurance for Older Cars” to see how an old vehicle could lower your premiums.

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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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.

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.

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.