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


Farmers Mutual of Nebraska offers the cheapest car insurance rate for individual drivers with low income and poor credit history at $39 per month. Auto-Owners provides the most affordable rate for families with low income at $45 per month. Nebraska does not offer state-backed car insurance programs for families and individuals with low income. Finding the provider with the most affordable rate is one option to manage the cost. There are also ways to get discounts to help alleviate the cost of car insurance.

Although minimum coverage will help you drive legally, there are downsides. For example, it may not cover all the damages in an at-fault accident, leaving you responsible for additional costs.

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Cheapest for Individuals With Low Income

Farmers Mutual of Nebraska is the cheapest car insurance provider in Nebraska for individual drivers with low income and poor credit history. Its average minimum coverage premium is $39 per month or $468 per year.

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Cheapest for Families With Low Income

Auto-Owners is the cheapest car insurance provider for families with low income in Nebraska. Its average minimum coverage premium is $45 per month or $537 per year.

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Cheapest for Senior Drivers With Low Income

Farmers Mutual of Nebraska is the cheapest car insurance provider in Nebraska for seniors with low income and poor credit score. Its average minimum coverage premium is $35 per month or $423 per year.

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

20,871Quotes Analyzed
 
13Companies Compared
 
27ZIP Codes

Does Nebraska Offer Low-Income Insurance?

Car insurance companies in Nebraska do not consider your income when calculating rates. Instead, they look at factors like your age, driving record, credit history and the type of car you drive. At-fault accidents and moving violations can increase your rates significantly. To find the cheapest rates, it's essential to compare quotes from several insurance companies. This approach helps you identify the most affordable options available.

If your budget is tight, a minimum coverage policy is often the cheapest way to stay legal on the road. If you rarely drive, pay-per-mile insurance can also be a cost-effective option. MoneyGeek rounded up the cheapest insurers for drivers with low income in Nebraska to help you save.

Minimum Car Insurance Requirements in Nebraska

To legally operate a vehicle in the Cornhusker State, you're required to carry car insurance that aligns with the state's minimum car insurance requirements. This includes the following coverage amounts:

  • $25,000 for bodily injury liability per person
  • $50,000 for bodily injury liability per accident
  • $25,000 for property damage liability per accident
  • $25,000 uninsured motorist bodily injury per person
  • $50,000 uninsured motorist bodily injury per accident

If budget constraints are a concern, a liability-only car insurance policy may be a viable option. It covers expenses for the other driver if you're at fault in an accident. However, it doesn't cover your own vehicle. To protect your car against damages, including theft or natural disasters, you'll need full coverage car insurance, which comprises collision and comprehensive coverages.

When choosing coverage, it's crucial to weigh the risks and benefits to determine the most suitable policy for your circumstances.

Cheapest Car Insurance for Individuals With Low Income in Nebraska

Your credit record can affect your car insurance rates in Nebraska. A lower credit-based insurance score may signal to insurers that you're a higher risk, which can lead to more expensive premiums.

Nebraska drivers with poor credit records can find affordable rates with:

  • Farmers Mutual of Nebraska: $468 per year; $39 per month
  • GEICO: $599 per year; $50 per month

The cheapest car insurance in Nebraska for drivers with low income and good credit history are:

  • American National P&C $197 per year; $16 per month
  • Farmers Mutual of Nebraska: $302 per year; $25 per month

Driving without insurance in Nebraska 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.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Farmers Mutual of Nebraska$468$39
GEICO$599$50
American National P&C$667$56
Progressive$711$59
IMT Insurance Company$754$63
Shelter$806$67
Iowa Farm Bureau$878$73
AAA$1,058$88
Auto-Owners Insurance Co$1,153$96
Allstate$1,192$99
Farmers$1,216$101
State Farm$1,838$153
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 Nebraska

Car insurance premiums in Nebraska don't depend on your income. However, your family situation has a notable impact. Single parents with a teen face higher rates, with an annual premium difference of $336 compared to married couples with a teen. For couples, insurance can be more affordable by $693 per year.

The most budget-friendly car insurance companies for married couples with a teen in Nebraska are:

  • Auto-Owners: $537 per year; $45 per month
  • Progressive: $669 per year; $56 per month

For single parents with a teen, the cheapest options are:

  • Auto-Owners: $873 per year; $73 per month
  • GEICO: $1,230 per year; $103 per month

Married couples with a teen can often get lower rates than single parents. This difference reflects how insurers assess risk and household dynamics. Keeping a solid credit score is key for both groups to land more affordable minimum coverage auto insurance rates.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
Auto-Owners Insurance Co$537$45
Progressive$669$56
State Farm$846$71
GEICO$850$71
Allstate$878$73
Farmers$1,145$95

Cheapest Car Insurance for Seniors With Low Income in Nebraska

Car insurance premiums generally decrease as you reach early senior years, typically between ages 55 and 65, especially if you have a clean driving record. The two cheapest car insurance for senior drivers with low income and poor credit history are:

  • Farmers Mutual of Nebraska: $423 per year; $35 per month
  • Shelter: $657 per year; $55 per month

After the age of 70, car insurance rates typically increase, as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. Nebraska has specific guidelines for senior drivers regarding car insurance.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Farmers Mutual of Nebraska$423$35
Shelter$657$55
Progressive$670$56
GEICO$680$57
American National P&C$755$63
IMT Insurance Company$761$63
Iowa Farm Bureau$761$63
AAA$1,104$92
Auto-Owners Insurance Co$1,170$97
Allstate$1,190$99
Farmers$1,345$112
State Farm$1,738$145
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 Nebraska?

Income doesn't directly affect car insurance rates in Nebraska. However, if low income leads to a poor credit record, it can result in higher rates. Conversely, a good credit record can lower your rates. Understanding the factors contributing to car insurance rates can help you make informed decisions when choosing the best car insurance for you.

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    Driving record

    At-fault accidents and moving violations increase rates for drivers. A clean record can help you get lower rates.

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    Age and gender

    Younger drivers and male drivers often face higher rates. Insurers see them as a higher risk.

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    Credit history

    Poor credit history can lead to higher insurance costs. Insurers believe it reflects your risk level.

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    Location

    Urban areas generally have higher rates due to the increased risk of accidents and theft, while rural areas may have lower rates.

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    Vehicle type

    Luxury and sports cars usually have higher insurance rates. They cost more to repair or replace.

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    Coverage levels

    Higher coverage levels increase insurance costs. Minimum coverage is cheaper but offers less protection.

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    Insurance company

    Different insurers offer varying rates and discounts. Comparing quotes can help you find the best deal.

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    Claims history

    A history of filing a claim can lead to higher rates as it indicates a higher risk to insurers. If you can afford to pay for your own repairs, it might pay not to file a claim.

How to Save on Car Insurance in Nebraska

Whether you qualify for state-sponsored programs or not, there are several ways to find affordable car insurance in Nebraska. Here are some tips to lower your car insurance premiums:

  1. 1
    Choose minimum coverage

    Opting for state-mandated minimum coverage allows you to meet legal requirements while keeping premiums low. It covers all essential liabilities without unnecessary extras.

  2. 2
    Comparison shop

    Get quotes from multiple insurers to compare rates and discounts. Shopping locally might help you find the lowest rates in Nebraska through specialized insurers.

  3. 3
    Look for discounts

    Many insurance companies provide 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. 4
    Increase your deductible

    Choosing a higher car insurance deductible reduces your premium. Ensure you can afford to pay the increased deductible in case of an accident.

  5. 5
    Consider pay-per-mile insurance

    Pay-per-mile insurance is ideal for low-mileage drivers. You pay a base rate plus a fee per mile, resulting in savings if you drive less.

  6. 6
    Bundle your policies

    If you need other insurance, like homeowners or renters insurance, bundling them with your auto policy can lead to discounts. The best home and auto bundles could save you around $496 annually.

  7. 7
    Drive a cheaper car

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

FAQ: Low-Income Car Insurance in Nebraska

Finding affordable car insurance can be challenging for drivers with low income in Nebraska. Get answers to some of the most commonly asked questions about low-income car insurance in the Cornhusker State.

Does Nebraska have a state-backed low-income car insurance program?

How can low-income families get affordable car insurance in Nebraska?

Does your income affect the cost of car insurance in Nebraska?

What are the benefits of usage-based telematics programs for drivers with low income in Nebraska?

About Mark Fitzpatrick


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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.