Cheap District of Columbia Low-Income Car Insurance for Families and Individuals

The District of Columbia does not have a car insurance program for low-income residents. For low-income drivers, MoneyGeek created a list of D.C.’s most affordable car insurance providers. Cheap car insurance for low-income families and individuals in the District of Columbia is available from GEICO.

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Last Updated: 8/15/2022
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Your income level is not considered when determining car insurance prices in the District of Columbia or any other state. Adding a teen to your policy, your age and your credit score can highly influence your auto insurance rates. MoneyGeek estimated low-income car insurance in the District of Columbia premiums for individuals and families based on their credit ratings.

Is There Car Insurance for Low-Income Families and Individuals in District Of Columbia?

The District of Columbia has no car insurance assistance program to help low-income families and individuals with their insurance costs. Although insurance is mandatory in all states, some drivers may forego it because of the high costs. Uninsured motorists account for 19.1% of all motorists in D.C., which is quite high.

The state minimum coverage policy in D.C. is your best bet if you're on a tight budget. For low-income drivers who drive infrequently, pay-per-mile insurance will be an affordable alternative.

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Does District Of Columbia Have a Government Program to Support Low-Income Drivers with Insurance?

There’s no government car insurance program in the District of Columbia for low-income drivers. The best way to find the cheapest insurance is to shop around and compare rates from multiple insurers. MoneyGeek analyzed the cheapest car insurance companies for low-income drivers in D.C. who are looking to save money on car insurance.

The Cheapest District Of Columbia Car Insurance Companies for Low-Income Drivers

Your income is not considered when determining car insurance rates in D.C., but your age and credit score are.

A state minimum coverage policy may be the cheapest you can find, but it also provides the least protection. The cheapest insurance companies in D.C. for low-income drivers are GEICO and Erie. MoneyGeek also ranked the District of Columbia’s cheapest quotes for low-income families and individuals of various age groups.

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The Cheapest District Of Columbia Car Insurance Companies for Low-Income Families

Your auto insurance prices are affected by your credit score, not your income. MoneyGeek's sample single parent with a poor credit score pays $1,633 a year more in insurance premiums in the District of Columbia than their counterparts with good credit scores. In D.C., couples with bad credit and a single teen were charged $2,213 more a year than those with good credit.

On average, these two companies offer the best rates to couples with a teen child and poor credit scores:

  • GEICO: $3,007 per year
  • Erie: $3,302 per year

USAA may be a good option for military families in the District of Columbia. The annual average USAA quote for couples with a child and poor credit is $2,827 annually.

The following two firms in D.C. are the most affordable for single parents with bad credit:

  • GEICO: $2,338 per year
  • Erie: $2,383 per year

The lowest policy for a single parent is offered by USAA and costs an average of $2,041 a year.

Keep in mind that having a low salary does not automatically equate to having poor credit. You can find the cheapest options for your scenario using the table below.

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Single parent w/ a kid

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  • Company
    Annual Rates
  • USAA
    $1,147
  • GEICO
    $1,314
  • Erie
    $1,340
  • State Farm
    $2,069
  • Allstate
    $2,265
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The Cheapest District Of Columbia Car Insurance Companies for Low-Income Individuals

Car insurance costs in the District of Columbia differed by $512 per year for our average 40-year-old low-income motorist with a poor credit score vs a good credit score.

MoneyGeek found the following two companies to be the cheapest for bad credit drivers on average:

  • GEICO: $645 per year
  • Erie: $764 per year

USAA is the District of Columbia's second cheapest overall insurer for people with bad credit. Their average yearly premium for a 40-year-old driver with poor credit is $654. However, USAA is exclusively available to military families.

You may have a low income, but that doesn't necessarily mean that you have a poor credit score. Your insurance premiums are mostly influenced by the state of your credit.

The cheapest companies on average for low-income drivers with good credit are:

  • GEICO: $363 per year
  • Erie: $430 per year

USAA comes in second place with an average rate of $368 annually.

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  • Company
    Annual Rates
  • GEICO
    $363
  • USAA
    $368
  • Erie
    $430
  • State Farm
    $664
  • Allstate
    $737

The Cheapest District Of Columbia Car Insurance Companies for Low-Income Students

In the District of Columbia, car insurance premiums for young student drivers are higher because of their lack of driving experience. Low-income status is automatically assigned to students because of their age. Although students' low incomes do not result in increased premiums, the cost of car insurance can take up a large chunk of their income.

On average, the two most affordable companies for young drivers with bad credit are:

  • GEICO: $1,477 per year
  • Erie: $1,750 per year

USAA has the second cheapest car insurance costs in D.C. at roughly $1,498 per year, but they only offer coverage to military personnel.

Even with a low income, it is possible to have a high credit score. For young drivers with good credit, the most affordable companies on average in D.C. are:

  • GEICO: $830 per year
  • Erie: $984 per year

At roughly $842 annually, USAA is the second cheapest insurer for students in D.C. with good credit. Again, these policies are only for military families.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • GEICO
    $830
  • USAA
    $842
  • Erie
    $984
  • State Farm
    $1,519
  • Allstate
    $1,687

The Cheapest District Of Columbia Car Insurance Companies for Low-Income Seniors

You can expect to pay more for auto insurance if you're a senior driver in D.C., especially if you have a poor credit score. On average, the difference in insurance costs for a 70-year-old driver in D.C. with a bad credit score vs. a driver with a good credit score is $558 per year.

Taking into account poor credit scores, the cheapest car insurance for low-income seniors in the District of Columbia on average are available from:

  • Erie: $808 per year
  • GEICO: $825 per year

If you are a senior driver with poor credit, USAA's car insurance costs $785 per year, which is the lowest in the state. However, USAA is only available to active-duty military personnel.

Having a low income does not always indicate having a bad credit score. A good credit score has a substantial influence on insurance costs.

The cheapest insurers in D.C. for seniors with good credit are, on average:

  • Erie: $454 per year
  • GEICO: $464 per year

USAA offers the cheapest insurance for seniors with good credit at roughly $441 annually, but these policies are only available to military families.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $441
  • Erie
    $454
  • GEICO
    $464
  • State Farm
    $658
  • Allstate
    $795

Does Income Affect Car Insurance Rates in District Of Columbia?

In most cases, car insurance providers don’t consider your income when evaluating your premiums. Even if you have a high income, your rates may be influenced by other factors.

Insurers charge more for young drivers' policies because of their increased likelihood of being in an accident. While still in their early phases of employment, they may also earn less. People with lower incomes are more likely to file claims since they lack the funds to pay for repairs on their own. Car insurance premiums are higher for drivers who have previously filed a claim.

MoneyGeek examined the correlation between low-income and insurance rates in the District of Columbia. The three most important factors affecting the rates are as follows:

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

In addition to these aspects, the coverage levels you choose and the model of your car also impact your rates.

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

    Adding a teen driver is the biggest factor in Alaska, 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 District Of Columbia

At first glance, the concept of low-income auto insurance may seem confusing. MoneyGeek addresses several of the most frequently asked questions regarding low-income auto insurance in the District of Columbia.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in the District of Columbia 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 the District of Columbia.

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.