Cheapest Car Insurance for Low-Income Drivers in California (October 2024)


The cheapest car insurance company for individual drivers with low-income is CSAA at $139 annually. For families with low-income, the most affordable provider is GEICO at $903 annually.

California does offer state-backed car insurance programs for low-income families and individuals. Looking for the provider with the most affordable rate is another option to manage the cost, and there are also ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, there are downsides to this type of coverage. For example, in an at-fault accident, minimum coverage may not cover all the damages, leaving you with significant out-of-pocket expenses.

Company Image
Cheapest for Individuals With Low Income

CSAA is the cheapest car insurance provider for individual drivers with low-income in California with an average minimum coverage premium of $12 per month or $139 per year.

Company Image
Cheapest for Families With Low Income

GEICO is the cheapest car insurance provider for families with low-income in California with an average minimum coverage premium of $75 per month or $903 per year.

Company Image
Cheapest for Senior Drivers With Low Income

CSAA is the cheapest car insurance provider for seniors with low-income in California with an average minimum coverage premium of $13 per month or $153 per year.

Why Trust MoneyGeek? We analyzed thousands of data points and quotes from Quadrant Information Services and the California Department of Insurance to get the cheapest average costs for low-income drivers of California.

352,910Quotes Analyzed
 
18Companies Compared
 
596ZIP Codes

Does California Offer Low-Income Insurance?

Car insurance companies in California do not consider income when calculating rates. However, they do look at your age, driving record, credit history, and the type of car you drive. If you have at-fault accidents or moving violations, your rates will likely be higher.

To find the cheapest rates, it's wise to compare quotes from several insurance companies. This can help you see different prices and coverage options.

If you're on a tight budget, getting a basic minimum coverage policy is often the least expensive choice to legally drive. For those who don't drive much, pay-per-mile insurance could be a great way to save. MoneyGeek has rounded up the cheapest insurers for low-income drivers in California to help you save.

Minimum Car Insurance Requirements in California

To legally operate a vehicle in California, you must have minimum car insurance requirements in place. These requirements include specific liability coverage amounts, as follows:

  • $15,000 for bodily injury liability per person.
  • $30,000 for bodily injury liability per accident.
  • $5,000 for property damage liability per accident.

When financial constraints are a concern, a liability-only car insurance policy may suffice. It covers damages to others if you're at fault in an accident but doesn't include your own vehicle's repairs. To protect your own car, consider a full coverage car insurance policy, which comprises collision and comprehensive coverages. These protect against various damages, from accidents to theft and natural disasters.

In the Golden State, if you reside in an area with high traffic density or frequent natural events, full coverage is advisable. Knowing the risks and benefits of different coverages ensures that you select a policy tailored to your needs. For instance, in urban areas with higher chances of vehicle theft or vandalism, full coverage provides peace of mind beyond the state minimum.

Cheapest Car Insurance for Individuals With Low Income in California

The cheapest car insurance in California for low-income drivers are:

  • CSAA: $139 per year; $12 per month
  • AAA: $404 per year; $34 per month

Driving without insurance in California is considered a misdemeanor and can lead to suspension of your driver's license and vehicle registration, fines ranging from $175 to $1,000 and other penalties. Make sure you're covered to drive legally and safely.

CSAA$139$12
AAA$404$34
GEICO$474$40
Progressive$485$40
Mercury$503$42
Kemper$561$47
Capital Insurance Group$615$51
State Farm$642$54
State National$644$54
Farmers$660$55
Hartford$715$60
Nationwide$722$60
Travelers$735$61
National General$745$62
Allstate$757$63
Chubb$791$66
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Cheapest Car Insurance for Families With Low Income in California

While income doesn't directly influence car insurance rates, your family situation does. For instance, a single parent's premium in California is typically higher, with an annual difference of $654 compared to married couples with a teen. Married couples enjoy more affordable rates, saving up to $654 per year.

The cheapest car insurance companies for married couples with a teen are:

  • GEICO: $903 per year; $75 per month
  • Farmers: $1,091 per year; $91 per month

The cheapest car insurance companies for single parents with a teen are:

  • GEICO: $1,557 per year; $130 per month
  • Travelers: $1,573 per year; $131 per month

Married couples with a teen can often secure more affordable minimum coverage auto insurance than single parents. This may be due to insurers viewing married couples as more stable and less risky to insure. Regardless of your family status, it's vital to keep a good credit score, as this can help you qualify for lower car insurance rates.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
GEICO$903$75
Farmers$1,091$91
Travelers$1,093$91
State Farm$1,094$91
Progressive$1,146$96
Capital Insurance Group$1,233$103
Kemper$1,311$109
Allstate$1,353$113
Nationwide$1,420$118

Cheapest Car Insurance for Seniors With Low Income in California

Car insurance premiums often decrease as you reach the early senior years between 55 and 65, especially with a spotless driving record. Based on state minimum liability rates, the two cheapest car insurance companies for seniors with low income in California are:

  • CSAA: $153 per year; $13 per month
  • AAA: $423 per year; $35 per month

Around age 70, insurance companies may start charging slightly more because they consider older drivers a higher risk. California doesn't have specific laws for senior car insurance, but we recommend checking for any updates or discounts that might help.

CSAA$153$13
AAA$423$35
GEICO$465$39
State Farm$487$41
Progressive$493$41
Mercury$517$43
Capital Insurance Group$593$49
Hartford$621$52
State National$625$52
Kemper$646$54
Farmers$678$57
Nationwide$696$58
Travelers$738$61
Allstate$747$62
National General$768$64
Chubb$815$68
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

What Factors Affect Car Insurance Rates in California?

Income doesn't directly affect car insurance rates in California. Additionally, insurance providers in the state are not allowed to base rates on your credit history. Instead, factors like your driving record, location, and the type of vehicle you drive play a bigger role. Understanding these factors can help you make informed decisions when choosing the best car insurance for your needs in the Golden State.

    seatbelt icon

    Driving record

    At-fault accidents and moving violations increase rates for drivers. Insurance companies see these as indicators of risky behavior, leading to higher premiums.

    male icon

    Age and gender

    Younger drivers and males generally face higher premiums. Statistically, they are involved in more accidents, making them riskier to insure.

    usMap icon

    Location

    Urban areas usually have higher rates due to more accidents and thefts. Rural areas tend to have lower premiums.

    pickupTruck icon

    Vehicle type

    Expensive or high-performance vehicles cost more to insure. They are more costly to repair or replace.

    car2 icon

    Coverage levels

    Higher coverage levels lead to higher premiums. Minimum coverage is cheaper but offers less protection.

    carInsurance icon

    Insurance company

    Different insurers offer varying rates and discounts. It's important to compare quotes to find the best deal.

    onlineForms icon

    Claims history

    A history of filing claims can lead to higher rates. It indicates a higher risk to insurers.

How to Save on Car Insurance in California

There are several ways to find affordable car insurance in California. You can explore state-sponsored programs for low-income drivers or use other strategies to lower your premiums. Here are some tips to lower your car insurance premiums:

1
Choose minimum coverage

Choosing California's state-mandated minimum coverage can help you save money while meeting the legal requirements to drive. This option provides the basics needed to keep you legally insured.

2
Comparison shop

Getting quotes from multiple insurers to compare rates and discounts can help you find the best deal. Shopping locally might also lead to the lowest rates in {{state}}.

3
Look for discounts

Many insurance companies offer discounts for various factors, such as being a good student, having a safe driving record, being a military member, or bundling your auto insurance with other policies.

4
Increase your deductible

If you opt to get collision or comprehensive coverage, choosing a higher car insurance deductible can significantly reduce your monthly premium. Be sure you can afford the deductible in case of an accident.

5
Consider pay-per-mile insurance

If available in {{state}}, pay-per-mile insurance is a great option for low-mileage drivers. You pay a base rate plus a per-mile fee, so you only pay for the miles you drive.

6
Bundle your policies

If you have other insurance needs, like homeowners or renters insurance, bundling them with your auto policy can often lead to discounts. The best home and auto bundles can save you around $496 each year.

7
Drive a cheaper car

Your car's make, model, and year significantly impact your insurance costs. Driving the cheapest cars to insure can save you hundreds of dollars in insurance costs each year.

FAQ: Low-Income Car Insurance in California

Finding affordable car insurance for low-income drivers in California can be tough. Get answers to some of the most commonly asked questions about low-income car insurance in California.

Does California have a state-backed low-income car insurance program?
How can low-income families get affordable car insurance in California?
Does your income affect the cost of car insurance in California?
What are the benefits of usage-based telematics programs for drivers with low-income in California?

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.