What to Do if You Can’t Afford Car Insurance

Struggling with high car insurance costs? You're not alone. Many drivers feel overwhelmed by rising premiums. The good news: there are proven ways to 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 may take longer, anywhere from a few months to a year.

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 might find better deals elsewhere.

The table below shows the cheapest full coverage options of the companies MoneyGeek surveyed for different driver profiles.

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: While annual payments come with discounts (5% to 10%), monthly payments can make insurance more manageable for tight budgets. The convenience fee is $5 to $15 per month, but the improved cash flow may be worth it.
• Payment date flexibility: Some insurers allow you to adjust your payment due date to align with your paycheck or other financial obligations. This simple change can prevent late payments and potential coverage lapses.

Discounts can 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 (coverage that pays to repair or replace your vehicle) probably isn't worth it. These coverages pay to repair or replace your vehicle, 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) could save you money. Liability coverage, required in most states, covers damage you cause to others and does not have a deductible.

Important considerations before dropping coverage:

Raising your deductible can provide 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, can help lower your premiums.

Specific cost impact examples:

• $250 to $500 deductible: Can reduce collision and comprehensive coverage costs by 15% to 30%
• $500 to $1,000 deductible: Saves $100 to $300 annually
• $500 to $1,500 deductible: Can save $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. Consider setting 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 can 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 are ideal for those who work from home, commute less or drive occasionally.

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

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

Driving less can help lower your insurance costs. You might 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 can be 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 maintaining essential financial protection.

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.

While minimum coverage is usually cheaper, it may not 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 table below for the cheapest provider and rates in your state.

If you don’t drive often, pay-per-mile or behavior-based car insurance may be more affordable than traditional policies. However, 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:

Building a foundation for consistently lower insurance rates requires patience, but these strategies deliver the most substantial long-term savings. They may take months to years to show results, but they're among the most effective ways to reduce your premiums.

If you can't make your insurance payment, don't panic. 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, seeking discounts and considering pay-per-mile policies. By exploring these options, you can find a policy that fits your budget and provides the coverage you need.

Struggling to afford car insurance can be tough, but there are strategies to manage costs. Here are common questions about lowering premiums, exploring discounts and understanding alternative coverage options.

How We Found the Most Affordable Car Insurance

Car insurance quotes vary wildly between companies, and it's hard to know which insurers offer good deals. We designed our research to identify which companies deliver affordable rates without skimping on the financial protection you need. Our approach focuses on real-world scenarios that budget-conscious drivers face when balancing cost with coverage.

Our Research Approach

We gathered 83,056 quotes from 46 companies across 473 ZIP codes to identify which insurers offer affordable auto insurance. Instead of relying on advertised rates or limited samples, we used data from state insurance departments and Quadrant Information Services to capture pricing patterns across different markets.

Insurance rates vary dramatically by location, and companies that are cheapest in one area might be expensive in another. Our geographic coverage ensures you're seeing realistic rate comparisons for your specific situation.

Sample Driver Profile

We used a standardized profile to ensure consistent rate comparisons:

• Age: 40-year-old male
• Vehicle: Toyota Camry LE
• Driving record: Clean (no accidents or violations)
• Annual mileage: 12,000 miles

This demographic qualifies for standard rates without the surcharges that affect younger drivers or those with violations. The Camry LE is a popular, moderately-priced vehicle that insurance companies rate favorably for both safety and theft prevention.

Coverage Levels That Matter for Your Budget

We tested two coverage scenarios that budget-conscious drivers consider:

Full Coverage (100/300/100 with comprehensive and collision):

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability
• $1,000 deductible for comprehensive and collision

This level provides solid financial protection if you cause a serious accident. The higher liability limits cost only $10 to $20 more monthly than minimum coverage but protect you from potentially devastating lawsuits.

Liability-Only Coverage (50/100/50):

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability

This covers other people's expenses when you're at fault but won't pay for your own vehicle damage. It's the most affordable option if you drive an older car that you could replace out of pocket.

The 100/300/100 coverage represents the sweet spot between cost and protection for most drivers. The 50/100/50 coverage exceeds many state minimums while keeping costs manageable for drivers prioritizing basic liability protection.

Our rate calculations reflect what you'd pay after standard discounts but before company-specific programs like safe driver monitoring or bundling discounts that might not apply to everyone.