Low-income drivers can save hundreds of dollars a month on car insurance with minimum coverage, pay-per-mile or state-subsidized insurance policies. Only three states have state sponsored insurance for low-income households. They are California, New Jersey and Hawaii.  If you don’t have access to a state-sponsored car insurance policy for low-income drivers, you’ll have to buy a standard policy from an insurer. Car insurance prices vary greatly by state.

Why Do Some States Offer Low-Income Auto Insurance And Others Don’t?

Currently, there are only three states in the U.S. that offer government car insurance for low-income residents. California, Hawaii, and New Jersey have implemented these programs for low-income individuals and families to make car insurance a more affordable necessity. You may be wondering why only three states in the U.S. offer low-income auto insurance programs when people all over the U.S. are facing financial hardship due to low income. If so, you are not alone. As insurance companies determine your auto insurance rates, one factor they do not include is income. This means that if all other factors (like age, driving history, and coverage levels) are equal, a person making $30,000 per year will pay the same for their car insurance policy as someone making $200,000. Organizations like the National Association of Insurance Commissioners (NAIC) and the Consumer Federation of America (CFA) keep a close eye on factors, like income, that impact insurance affordability. Research indicates that access to a car, and therefore, car insurance is crucial in gaining and maintaining employment. Employment, and therefore, access to it, is the lifeblood for personal financial health and state economic health. Car insurance affordability affects everyone. In over 9% of all zip codes in the U.S., the cost of auto insurance exceeded the Affordability Index, affecting more than 18.6 million residents. Don’t lose hope, though. As organizations and consumer advocacy groups continue this type of research and illustrate the correlation between affordable insurance and employability, there may be hope that additional states in the U.S. will begin to offer government-sponsored low-income auto insurance programs.

Can A Private Auto Insurance Company Meet My Needs?

A private auto insurance company can meet your needs, and all U.S car insurance companies are private. This free-market system results in competition between companies, which is why shopping around is important. It can be difficult to determine which auto insurance companies are best, so it’s important to do your research.

Shop Around

The simplest and most effective way to save is to shop around for the lowest rate. Different car insurance companies can offer remarkably different prices for the same driver, so if you haven’t collected multiple quotes, you may be missing out on the lowest price. It can also be worth it to check back periodically to see if competing insurers will offer you better rates, even if you got your best deal when you purchased your insurance. Companies constantly adjust how they calculate their rates, so you may be eligible for new savings that didn’t apply before. The internet has a few very effective engines like Google, Bing, Yahoo, and DuckDuckGo. Also search for any reductions to be had. A mixture of reductions can get you an excellent deal.

What Type Of Auto Insurance Do You Need?

If your state doesn’t provide one of the low-income vehicle coverage rules, you may locate financial savings through different avenues. Speak to an agent and reassess your insurance.

Look For Discounts

  • Multi-Policy discount: Receives premium savings when you have other qualifying policies with Auto-Owners.
  • Payment History: Discounts for individuals who have paid their premiums on time for the last 36 months.
  • Green Discount: When you enroll in paperless billing and pay your policy online.
  • Multi-Car: You may qualify for a discount when two or more private passenger vehicles are insured on your personal auto policy.
  • Safety Feature Discounts: You may qualify for this discount if your vehicle is equipped with certain safety features, such as anti-lock brake systems (ABS), airbags or anti-theft devices.
  • Student Discounts: B or better grade-point-install Global Positioning System (GPS)
  • Take a lower coverage level: If your automobile is worth less than $4,000, you may get a decrease by dropping complete full coverage.
  • Five-Year Accident-Free Good Driver Discount.

Do Not Let Coverage Lapse

A lapse in coverage may cause insurance companies to see you as a high-risk driver, even if you have a good driving record. It can also potentially impact your future car insurance premiums. It’s best to keep continuous coverage to get the best insurance rate and make sure that you’re protected in a car accident. As of the writing of this post… auto insurance is required to own and operate a vehicle in all states except New Hampshire.

Contact us (859-781-7283) for more information or get a free quote!

About Rollins Insurance 

Rollins Insurance is an independent insurance agency providing our clients the best prices with the most coverage possible since 2008. We represent multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio. We find that most people are under-insured and over-paying when we meet them. We love what we do and our primary business is Personal Auto, Homeowners, and Life and Health insurance. We are a family-owned and managed business that specializes in providing needs-based insurance services.
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