What to Do if You Can’t Afford Car Insurance

Many drivers feel overwhelmed by rising premiums. You can lower your insurance costs without sacrificing essential financial protection. Some steps, like comparing quotes, take just minutes. Improving your credit score or clearing driving violations from your record takes longer, anywhere from a few months to a year.

Rate availability and savings vary by state, insurer, and individual circumstances.

Don't cancel your car insurance, even if you're struggling to pay. Driving uninsured is illegal in most states and leads to hefty fines, license suspension, or worse, financial ruin after an accident. Instead, explore lower coverage options, discounts or state assistance programs to keep some level of protection in place.

Insurance rates vary by company, so compare quotes from multiple car insurance companies to find a better deal. Even if you've been with the same insurer for years, you can find better deals elsewhere.

Check the cheapest full coverage options in the table for different driver profiles.

Based on MoneyGeek's analysis of major insurers. Your actual rates may vary based on location, driving record, and other factors.

If you're struggling with upfront costs, explore these payment flexibility options:

• Grace periods: Most insurers provide a 10- to 30-day grace period if you miss a payment. You're still covered during this time, but your policy will cancel if payment isn't received by the grace period. Contact your insurer immediately if you can't make a payment on time.
• Low down payment plans: Many insurers offer policies with minimal down payments. USAA, GEICO and Nationwide provide the most affordable down payment options, sometimes as low as $0 to $50.
• Monthly payment plans: Annual payments come with discounts (5% to 10%), but monthly payments make insurance more manageable for tight budgets. The convenience fee is $5 to $15 per month, and the improved cash flow is often worth it.
• Payment date flexibility: Some insurers let you adjust your payment due date to align with your paycheck or other financial obligations. This simple change prevents late payments and potential coverage lapses.

Discounts reduce your premiums, but the final quote matters most. Companies with many discounts may not offer the lowest prices. Comparing rates and offers from multiple insurers helps you find the most affordable policy.

If you drive an older car with low market value, paying for collision and comprehensive insurance isn't worth it. These coverages pay to repair or replace your vehicle up to its actual cash value, minus your chosen deductible, but the payout won't justify the cost for a car worth only a few thousand dollars.

For example, if your car's valued at $2,000 and you're paying $600 annually for full coverage, dropping collision and comprehensive while keeping liability insurance (coverage that pays for damage and injuries you cause to others) saves you money. Liability coverage, required in most states, covers damage you cause to others. Unlike collision and comprehensive coverage, liability coverage doesn't have a deductible you pay.

Important considerations before dropping coverage:

Raising your deductible provides immediate relief. Here's exactly how much you can save and what to consider before making this move.

Raising your deductible, the amount you pay out of pocket before insurance covers a claim, lowers your premiums.

Specific cost impact examples:

• $250 to $500 deductible: Reduces collision and comprehensive coverage costs by 15% to 30%
• $500 to $1,000 deductible: Saves $100 to $300 annually
• $500 to $1,500 deductible: Saves $200 to $500 annually with 40% or more in collision/comprehensive savings

Only choose a higher deductible if you have enough emergency savings to cover the deductible amount. Set aside the deductible amount in a separate emergency fund so you're prepared for potential claims.

Some insurers offer usage-based and pay-per-mile programs that track your driving habits and mileage through a mobile app or a device in your car. If you drive less than 8,000 miles a year or follow safe driving practices like avoiding hard braking and speeding, you save 10% to 40% on your premium.

Programs like Progressive's Snapshot and Allstate's Drivewise give discounts to low-mileage and safe drivers. These options work well for those who work from home, commute less or drive occasionally.

Some states provide assistance programs for drivers who can't afford car insurance. These programs exist because driving without insurance has serious legal and financial consequences.

Driving without insurance is illegal in most states and creates serious financial and legal problems:

Driving less lowers your insurance costs. You also save by sharing a vehicle with a family member and being added as an occasional driver on their policy, which is often cheaper than having your own.

Finding affordable car insurance is straightforward when you know what to look for. This guide provides practical tips to compare options, understand coverage and choose a policy that fits your budget while keeping the financial protection you need.

If car insurance is too expensive or hard to find, minimum coverage is the lowest coverage level to consider. The required coverage amount varies by state, so check your state's laws.

Minimum coverage is cheaper, but it doesn't provide the protection you need. These policies don't include comprehensive or collision insurance, which cover damage to your vehicle, yourself and passengers in an accident.

Check the cheapest provider and rates in your state in the table.

Based on MoneyGeek's analysis of major insurers. Your actual rates may vary based on location, driving record, and other factors.

If you don't drive often, pay-per-mile or behavior-based car insurance is more affordable than traditional policies. To save with pay-per-mile insurers like Metromile, you must drive less than 26 miles per week.

Here are three types of pay-per-mile insurance:

Getting consistently lower insurance rates requires patience, but these strategies deliver the biggest long-term savings. They take months to years to show results and are among the most effective ways to reduce your premiums.

If you can't make your insurance payment, contact your insurer immediately to discuss options:

If you're still struggling, explore non-owner car insurance or alternative transportation until you can afford regular coverage.

Car insurance premiums depend on factors like age, location and coverage levels. Start by comparing quotes, looking for discounts and considering pay-per-mile policies. By exploring these options, you find a policy that fits your budget and provides the coverage you need.

Struggling to afford car insurance is tough, but there are strategies to manage costs. Common questions about lowering premiums, exploring discounts and understanding alternative coverage options:

Car insurance costs keep climbing, and you need to know which companies actually deliver low rates. We analyzed quotes from every major insurer to show you exactly which companies charge the least in your area.

Our Research Approach

We sourced quote information from Quadrant Information Services and state insurance departments, covering all ZIP codes nationwide. This comprehensive approach reveals which insurers offer genuinely competitive pricing versus those inflating rates. Your neighbor might pay half what you do for identical coverage, so our analysis shows which companies consistently charge less.

Sample Driver Profile

We used a profile representing a favorable insurance candidate to establish baseline pricing:

• 40-year-old man (past the high-risk young driver surcharges)
• 2012 Toyota Camry LE (affordable, safe vehicle that doesn't trigger luxury premiums)
• Clean driving record (no accidents or violations inflating rates)
• Good credit (qualifying for better pricing)
• 12,000 miles annually (average usage)

Even with these favorable characteristics, rates varied greatly between insurers. If your profile is less favorable, these comparisons show which companies remain most affordable.

Coverage Levels Tested

Full Coverage (100/300/100): $100,000/$300,000/$100,000 liability limits with $1,000 deductibles for comprehensive and collision coverage.

Minimum Coverage: Each state's required liability limits, which vary by location.

Our rate calculations reflect standard discounts but exclude company-specific programs like safe driver monitoring that might not apply to everyone.