Cheap Delaware Low-Income Car Insurance for Families and Individuals

Delaware does not have a low-income car insurance program. MoneyGeek analyzed the cheapest car insurance providers and found that State Farm provides the cheapest car insurance to low-income families and individuals in Delaware.

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Last Updated: 8/15/2022
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Your income is not taken into account when calculating car insurance premiums in Delaware or any other state. Including a teen on your policy as well as your credit score and age can affect your auto insurance premiums. Based on credit scores, MoneyGeek computed the cost of low-income car insurance in Delaware for individuals and families.

Is There Car Insurance for Low-Income Families and Individuals in Delaware?

Low-income families and individuals in Delaware do not have access to car insurance assistance programs. Despite the fact that insurance is required by law in every state, some motorists choose not to purchase it because of the exorbitant insurance costs. The percentage of uninsured drivers in Delaware stands at 8.5%, which is on the high end.

A state minimum insurance policy is your best option if you have a limited budget, while pay-per-mile insurance is the ideal option if you're a low-income driver who seldom drives.

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Does Delaware Have a Government Program to Support Low-Income Drivers with Insurance?

Low-income drivers cannot access a government car insurance program in Delaware. However, you can obtain the most cost-effective insurance if you shop around quotes from several insurers. MoneyGeek broke down the cheapest car insurance companies for low-income drivers in Delaware who are trying to save money on car insurance.

The Cheapest Delaware Car Insurance Companies for Low-Income Drivers

In Delaware, your car insurance rates are not calculated based on your income but rather on factors such as your age and credit score.

Even though it is less expensive, a policy that only meets the state's bare minimum requirements will provide the least amount of protection. For low-income drivers in Delaware State Farm, GEICO and Travelers are the best and cheapest options. MoneyGeek also looked at the most affordable car insurance in the state for low-income families and people of all ages.

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The Cheapest Delaware Car Insurance Companies for Low-Income Families

According to our research, a single parent in Delaware with a poor credit score spends approximately $2,240 more in insurance premiums per year than a parent with a good credit score. Families with a single teen spend roughly $2,931 more on car insurance each year than families with good credit.

On average, for families with a teen kid and a poor credit score, the following two companies are the cheapest in Delaware:

  • GEICO: $5,788 per year
  • Progressive: $6,177 per year

USAA is the state's cheapest auto insurance provider for families with a teen driver and a low credit score, charging an average annual premium of $2,680. However, they aren’t on this list because they only serve military families.

On average, Delaware's two most affordable companies for low-income single parents with poor credit are:

  • State Farm: $4, 177 per year
  • Travelers: $4,723 per year

It costs an average of $1,960 per year to insure a single parent through USAA, which is the state’s second cheapest quote.

Regardless of your low income, you may not have a poor credit score. Using the chart below, you can find the most affordable car insurance for low-income families in Delaware.

Sort by family type:

Single parent w/ a kid

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $1,058
  • State Farm
    $2,254
  • Travelers
    $2,549
  • Progressive
    $2,917
  • Nationwide
    $2,936
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The Cheapest Delaware Car Insurance Companies for Low-Income Individuals

In Delaware, car insurance is roughly $741 more expensive per year for a 40-year-old low-income driver with a poor credit score than a driver with a high credit score.

On average, low-income drivers with poor credit can save money by choosing one of the following two insurance companies:

  • State Farm: $1,509 per year
  • GEICO: $1,548 per year

With an average annual cost of $678, USAA provides the cheapest car insurance for low-income individuals in Delaware with poor credit. USAA was left off our list since it’s only for military families.

Low income does not always equate to bad credit. On average, drivers with good credit pay get the cheapest rates from:

  • State Farm: $815 per year
  • GEICO: $836 per year

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $366
  • State Farm
    $815
  • GEICO
    $836
  • Travelers
    $845
  • Progressive
    $884

The Cheapest Delaware Car Insurance Companies for Low-Income Students

Because of their inexperience, young Delaware student drivers pay more for auto insurance. Even if students’ low incomes aren't factored into calculating insurance premiums, their insurance costs can still consume a sizable portion of their budget.

On average, the following companies in Delaware provide the cheapest car insurance for low-income student drivers with poor credit:

  • State Farm: $3,265 per year
  • GEICO: $3,350 per year

USAA has the lowest annual car insurance cost in the state at $1,466 per year, but they were not included in our rankings since only military personnel are eligible for coverage.

You may have a good credit score despite your low income. The cheapest companies on average for students with good credit are:

  • State Farm: $1,762 per year
  • GEICO: $1,808 per year

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $791
  • State Farm
    $1,762
  • GEICO
    $1,808
  • Travelers
    $1,828
  • Progressive
    $1,912

The Cheapest Delaware Car Insurance Companies for Low-Income Seniors

You'll have to pay more for car insurance in Delaware if you are a senior. Additionally, car insurance costs for the elderly with poor credit are also higher. There is roughly an $800 difference between 70-year-old low-income seniors with poor credit and good credit scores in Delaware.

On average, car insurance for low-income seniors in Delaware with a poor credit score are the cheapest from:

  • State Farm: $1,485 per year
  • GEICO: $1,589 per year

In Delaware, USAA's car insurance costs an average of $781 per year for low-income senior drivers with poor credit. However, we excluded USAA from our rankings since they are only available to military families.

A low income does not always equate into a low credit score. A good credit score has a major effect on insurance prices.

The cheapest companies in Delaware for seniors with good credit are, on average:

  • State Farm: $802 per year
  • GEICO: $857 per year

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $421
  • State Farm
    $802
  • GEICO
    $857
  • Travelers
    $953
  • Progressive
    $974

Does Income Affect Car Insurance Rates in Delaware?

Your income is rarely used by insurance providers when deciding the cost of car insurance. Nevertheless, your rates might be influenced by other factors that are related to your income.

For example, younger drivers are more likely to be involved in an accident, resulting in higher insurance costs. Additionally, because they are just beginning their jobs, they may earn less money. Low-income individuals are more likely to file insurance claims. Also, insurance premiums are higher for drivers with a claim history.

MoneyGeek conducted research in Delaware on the association between low income and insurance premiums. The following are the three most important factors that affect the rates:

  • Adding a teen driver to the policy.
  • Credit score.
  • Age of the driver.

Your age and type of car also impact how much Delaware insurance costs.

  • Factor
    How it Affects Your Rates
  • Adding a Teen Driver

    Adding a teen driver is the biggest factor in Delaware, making rates 3.6x as expensive.

  • Age of Driver

    Age of adult drivers is important too. In Alaska, rates can vary by 2.4x for young drivers versus middle-aged drivers.

  • Coverage Levels

    How much coverage you buy in Alaska matters a lot. Buying a full coverage policy will be 2.4x more expensive than the state minimum.

  • Car Model

    Depending on the model of your car, insurance could be twice as expensive.

  • Credit Score

    A driver with a poor credit score may pay 1.7x more than one with an excellent score.

Frequently Asked Questions About Low-Income Car Insurance in Delaware

Auto insurance for low-income drivers can be confusing at first. MoneyGeek provides answers to the most frequently asked questions about low-income auto insurance in Delaware.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Delaware using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple each 40 years old or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Delaware.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.