Updated: July 30, 2025
Advertising & Editorial Disclosure
GEICO leads nationwide with the lowest rates for low-income drivers at $66 monthly, followed by Kemper at $78 and AIG at $93. State averages differ, with the lowest premium at $18 per month.
California, New Jersey and Hawaii offer government-sponsored low-income car insurance programs with specific eligibility requirements. Rates can be as low as $20 monthly.
Low-income drivers can save by purchasing enough insurance to cover their risks and avoiding coverages they don't need. Multiple discounts can also be combined for maximum savings.
GEICO offers the cheapest low-income car insurance for most drivers, with average monthly rates of $66. The companies below offer some of the cheapest car insurance rates for budget-conscious drivers, with several providing specific programs and discounts that help reduce costs for those with limited income.
| GEICO | $66 | $791 |
| Kemper | $78 | $936 |
| AIG | $93 | $1,121 |
| Nationwide | $96 | $1,152 |
| Travelers | $98 | $1,176 |
| AAA | $99 | $1,186 |
| Amica | $103 | $1,234 |
| Progressive | $103 | $1,237 |
| Chubb | $105 | $1,262 |
| State Farm | $107 | $1,290 |
| Farmers | $128 | $1,539 |
| Allstate | $134 | $1,612 |
| UAIC | $160 | $1,916 |
*These rates are based on a 40-year-old driver with good credit and no driving violations.
GEICO is the most affordable widely available insurer, ranking cheapest in 15 states (excluding USAA). Travelers offers the lowest rates in five states, while State Farm ranks cheapest in four states. Below, you can review which provider is cheapest in your area.
| Alabama | Cincinnati | $42 | $506 |
| Alaska | Western National | $47 | $564 |
| Arizona | GEICO | $63 | $752 |
| Arkansas | Alfa | $36 | $435 |
| California | GEICO | $53 | $634 |
| Colorado | GEICO | $62 | $739 |
| Connecticut | GEICO | $61 | $736 |
| Delaware | GEICO | $67 | $798 |
| District of Columbia | Erie | $77 | $920 |
| Florida | GEICO | $62 | $744 |
| Georgia | Central | $47 | $568 |
| Hawaii | GEICO | $33 | $398 |
| Idaho | GEICO | $72 | $863 |
| Illinois | Erie | $50 | $599 |
| Indiana | Hastings | $23 | $278 |
| Iowa | IMT | $51 | $607 |
| Kansas | Shelter | $60 | $718 |
| Kentucky | GEICO | $63 | $751 |
| Louisiana | GEICO | $53 | $637 |
| Maine | MMG | $35 | $426 |
| Maryland | Erie | $54 | $651 |
| Massachusetts | Safety | $32 | $383 |
| Michigan | Farm Bureau | $43 | $521 |
| Minnesota | Westfield | $25 | $295 |
| Mississippi | Farm Bureau | $65 | $776 |
| Missouri | Kemper | $64 | $765 |
| Montana | GEICO | $72 | $866 |
| Nebraska | Farmers Mutual Ins Co of NE | $19 | $227 |
| Nevada | GEICO | $60 | $717 |
| New Hampshire | MMG | $31 | $374 |
| New Jersey | GEICO | $63 | $758 |
| New Mexico | Central | $52 | $629 |
| New York | NYCM | $33 | $398 |
| North Carolina | Erie | $57 | $680 |
| North Dakota | North Star | $51 | $612 |
| Ohio | Cincinnati | $42 | $502 |
| Oklahoma | American Farmers & Ranchers | $46 | $557 |
| Oregon | Country Financial | $47 | $567 |
| Pennsylvania | Westfield | $28 | $331 |
| Rhode Island | Quincy | $67 | $809 |
| South Carolina | Farm Bureau | $60 | $720 |
| South Dakota | Farmers Mutual Ins Co of NE | $21 | $247 |
| Tennessee | Erie | $57 | $687 |
| Texas | GEICO | $57 | $682 |
| Utah | Farm Bureau | $58 | $696 |
| Vermont | Union Mutual | $18 | $221 |
| Virginia | Auto-Owners | $49 | $593 |
| Washington | California Causality | $57 | $683 |
| West Virginia | Westfield | $39 | $470 |
| Wisconsin | West Bend Mutual | $48 | $573 |
| Wyoming | GEICO | $77 | $920 |
*NOTE: These rates are based on a 40-year-old driver with good credit and no driving violations. USAA was not included in the rankings because it only caters to military families. For eligible customers, it may be a viable option.
Regional insurers often provide low rates in their service areas, plus personalized customer service and flexible payment arrangements for customers experiencing financial difficulties.
National insurers offer consistency across states, extensive online resources and mobile apps for policy management, which can be beneficial for busy, budget-conscious drivers who need flexible service options.
Three states offer official government-sponsored insurance programs with significantly reduced rates:
California, New Jersey and Hawaii offer government assistance programs for low-income drivers. Maryland assists drivers denied by private insurers. Below we've summarized state-provided car insurance programs for low-income drivers:
Who qualifies: Income within 250% of federal poverty level
Individual: Up to $37,650 annually
Family of four: Up to $78,000 annually
Additional requirements: Valid CA license, clean driving record, vehicle worth under $25,000, age 16+
What's covered: Basic liability (10/20/3) + property damage
Cost: $244 to $966 annually (varies by county)
Optional add-ons: Medical payments, uninsured motorist coverage
Apply: www.mylowcostauto.com or (866) 602-8861
Who qualifies: Enrolled in federal Medicaid with hospitalization + valid NJ license
What's covered:
$250,000 emergency medical treatment after car accidents
$10,000 death benefit
⚠️ Does NOT include liability coverage (you'll need additional coverage)
Cost: $365 annually ($1/day)
Best for: Catastrophic accident protection only
Apply: Most NJ insurance agencies or PAIP at (800) 652-2471
Who qualifies:
What's covered: Minimum liability ($20,000/$40,000 bodily injury)
Cost: FREE for eligible drivers
Limitations: One vehicle per household (additional vehicles possible for work/medical transport)
Apply: Hawaii DHS at (855) 643-1643
Who qualifies:
What's covered: State minimum requirements ($30,000/$60,000 bodily injury, $15,000 property damage)
Cost: Varies based on risk factors
Note: Last resort option for high-risk drivers
Apply: www.mymarylandauto.com or (800) 492-7120
These programs give drivers access to required insurance when they can't afford regular coverage. Each program has different rules about who qualifies and what's covered, so check the requirements before applying.
Government low-income car insurance programs offer financial relief, but have limitations. All programs provide only basic coverage that may not protect you from serious accidents. Unlike private insurance, you can't shop around or negotiate rates. Most programs require annual eligibility verification, so you must prove your income and circumstances each year to maintain coverage.
Finding affordable car insurance goes beyond simply choosing the cheapest quote. Low-income drivers face different challenges but also have access to specific programs and discounts that can reduce costs. Below, we've broken down our recommended steps to get the cheapest low-income car insurance.
Insurance rates vary between companies for identical coverage. Request quotes from at least five insurers using comparison websites and direct contact with companies. Compare by evaluating identical coverage levels and deductibles. Make this an annual habit as rates fluctuate regularly.
Minimum coverage works best for older vehicles worth less than $3,000 or extremely tight budgets; this coverage typically costs around $67 monthly nationwide. However, this leaves you vulnerable to high out-of-pocket expenses in accidents. Full coverage makes sense for newer vehicles or drivers with assets to protect, costing around $223 monthly but protecting against major financial losses.
The best discounts include bundling auto and renters insurance (10 to 25% savings), maintaining a clean driving record for three or more years (10 to 25% off), and setting up automatic payments (3 to 7% savings).
Discounts also include completing defensive driving courses online for $20 to 50, which provides 5 to 15% savings for three years, and professional group discounts for teachers, nurses, and government employees.
Increasing your deductible from $500 to $1,000 can reduce monthly premiums by 10 to 30%. Choose a deductible amount you can realistically afford to pay out-of-pocket and consider setting aside this amount in a separate savings account.
Usage-based insurance monitors your driving habits and rewards safe behaviors; this can provide you with significant discounts. Progressive Snapshot, Allstate Drivewise, and State Farm's Drive Safe & Save work best for safe drivers with low annual mileage and flexible schedules who can avoid peak traffic times.
Your credit score affects insurance rates in most states. Focus on paying bills consistently on time, reducing credit card balances below 30% of limits, and checking your credit report annually for errors. California, Hawaii, Massachusetts and Michigan don't use credit scores for insurance rating.
Pay-per-mile insurance works well for drivers who travel fewer than 10,000 miles annually, potentially saving 20 to 40% for low-mileage drivers. Top providers include Metromile, Mile Auto and Allstate Milewise, each offering different pricing structures.
Combining auto and renters insurance typically saves 10 to 25% on both policies. Since renters insurance often costs only $10 to 20 monthly, the combined savings usually more than offset the additional cost. The best bundling companies include State Farm, Allstate, and Farmers.
Government programs offer the most direct path to low-income car insurance but are unavailable in all states and have strict eligibility requirements. Numerous nonprofit organizations, charities and alternative assistance programs can help you afford car insurance or handle transportation-related expenses when traditional options aren't available.
Having organized paperwork ready speeds up your application and prevents delays or denials.
Valid government-issued photo ID (driver's license, state ID, passport, or military ID) plus Social Security card or number. Non-citizens need immigration documents, and all identification must be current with matching names across documents.
Current vehicle registration, vehicle title or loan paperwork, and Vehicle Identification Number (VIN) for coverage quotes. Some programs require vehicle appraisals or inspection certificates to assess condition and value.
Recent utility bills, lease agreements, or mortgage statements from the past 30 days prove residence in the service area. Government correspondence like tax notices also works as acceptable proof.
Document all income sources through recent pay stubs, tax returns, and benefit award letters. Self-employed individuals need Schedule C forms and business records, while all adult household members must provide income documentation.
Birth certificates for dependents, marriage certificates or divorce decrees, and custody agreements establish household composition. Include school enrollment records for student discount eligibility.
Past due bills, shut-off notices, insurance cancellation warnings, or job loss documentation demonstrate immediate financial need. Create a detailed monthly budget showing income versus expenses to prove hardship.
California CLCA requires income proof within 250% of federal poverty level and clean driving record. New Jersey SAIP needs Medicaid card with hospitalization coverage, while Hawaii AABD requires disability determination or age verification (65+).
The average U.S. household spends around 1.5% of its income on car insurance, but low-income drivers often pay a much larger share. Several financial and systemic factors contribute to this disparity. Knowing what drives up your premiums can help you manage costs more effectively.
In most states, poor credit leads to higher premiums. Improving your credit by paying bills on time, lowering debt and correcting errors can help reduce costs. (Note: California, Hawaii, Massachusetts and Michigan don’t allow credit-based pricing.)
Your ZIP code affects rates due to local crime, accidents and repair costs—factors often higher in low-income areas.
Lapses in coverage signal higher risk and lead to increased rates. Keeping continuous insurance, even at minimum levels, can help control premiums.
Newer cars cost more to insure, while older cars may qualify for cheaper liability-only coverage. Weigh vehicle cost against long-term insurance expenses.
Monthly payments often include extra fees. Paying in full or finding insurers with low-cost payment plans can reduce overall costs.
GEICO, Kemper and AIG offer the best and cheapest low-income car insurance. We recommend exploring government assistance programs like California's CLCA, New Jersey's SAIP or Hawaii's AABD, then comparing quotes from traditional insurers to get the best deal possible.
If you're still priced out of coverage, nonprofit organizations and public assistance programs in some states can help fill the gap. Make sure any policy you choose meets your state's minimum requirements and fits your financial situation. Compare quotes from multiple insurers, take advantage of available discounts and consider adjusting coverage levels.
We answer common questions to help low-income drivers find the most affordable car insurance provider and the best deal.
GEICO offers the most affordable auto insurance for most drivers, but this can change based on your needs, such as if you're a young driver, a military member or a driver with an at-fault accident.
According to our analysis, the Subaru Forester is the most affordable car to insure, whether used or new. It's also the cheapest SUV.
To find the cheapest car insurance quotes, compare different providers. Because this can take time, we created a car insurance calculator. Enter your details to get quick estimates that can guide your research.
Getting cheap auto insurance has risks. It costs less but may not provide enough financial protection in an at-fault accident. With only minimum liability limits, you could pay thousands of dollars for your medical bills and repairs. You might also have to cover the other party's expenses out of pocket if your coverage isn't adequate (except in no-fault states).
Yes, you can get car insurance if you receive food stamps or other government benefits. Your benefit status doesn't disqualify you from purchasing insurance, and some states like California, New Jersey and Hawaii offer special low-cost programs for people receiving government assistance. When applying for these programs, you may need to provide documentation of your benefit status as proof of income eligibility.
To apply for low-income car insurance programs, you'll likely need a valid driver's license, vehicle registration, proof of income for all household members and documentation of your financial need or crisis situation.
For government programs, you may also need Social Security cards, birth certificates for dependents and proof of residency. Some programs require specific documentation, like Medicaid cards for New Jersey's SAIP program or benefit award letters for Hawaii's AABD program.
Processing times vary by program and state. California's CLCA program usually takes two to three weeks after submitting all required documentation. New Jersey's SAIP program can often provide coverage within a few days to a week. Emergency assistance programs through nonprofits like the Salvation Army or United Way may process applications within 24 to 48 hours for urgent situations.
If you're having trouble making payments, contact your insurance company immediately to discuss options like payment extensions, temporary coverage reductions or payment plan modifications. Many insurers offer hardship programs for customers experiencing financial difficulties. Letting your policy lapse will result in higher rates when you seek new coverage, so maintain basic coverage even if you need to temporarily reduce coverage levels.
Yes, you may qualify for low-income car insurance programs even if you work part-time, as eligibility is often based on total household income rather than employment status. For example, California's CLCA program requires household income within 250% of the federal poverty limit, regardless of whether that income comes from full-time work, part-time work or benefits. Document all income sources when applying to determine your eligibility.
College students may qualify for low-income car insurance programs if they meet income requirements, either independently or as part of their family's household income calculation.
Students should also look for good student discounts offered by most insurers, which can reduce premiums for maintaining good grades.
If students are claimed as dependents, their parents' income may be considered for program eligibility, but if they're independent, only their own income counts. Teens under 18 can't legally purchase auto insurance without a parent or guardian as a co-signer in most cases.
How We Collected Data
We analyzed 83,056 quotes from 46 insurance providers across 473 ZIP codes, using data from state insurance departments and Quadrant Information Services. This national sample reflects real-world pricing in the communities where many low-income drivers live.
Sample Driver Profile
Our quotes are based on a driver with the following characteristics:
This profile represents a responsible driver to whom insurers typically offer their best rates. We also adjusted the profile to reflect factors that often affect low-income drivers, including:
Coverage Levels Included
We collected quotes for two key coverage levels to reflect different budget and protection needs:
100/300/100 coverage = $100,000 bodily injury per person / $300,000 per accident / $100,000 property damage
Why This Method Works for Low-Income Drivers
We focused on insurers offering consistent affordability across states, not just temporary promotions. This helps drivers find reliable, long-term savings.
We also researched low-income assistance programs and financial aid options outside traditional insurance to provide multiple paths to affordable coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
