Cheap Nebraska Low-Income Car Insurance for Families and Individuals

Nebraska is one of the states that does not have a government assistance program to help low-income drivers with the cost of car insurance. Research by MoneyGeek finds GEICO and Farmers Mutual of Nebraska have the cheapest car insurance for most low-income drivers in Nebraska.

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Last Updated: 4/19/2022
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The cost of your car insurance is not based on your income level. The factors that affect your rates the most in Nebraska include your age and adding a teen driver on your policy. MoneyGeek determined the cost of car insurance for low-income individuals and families across credit scores.

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

There is no government car insurance program in Nebraska to help drivers with the cost of car insurance. While car insurance is a requirement in the state, 9.3% of the drivers are uninsured, with many likely unable to afford the high coverage rates.

Drivers seeking to purchase the most affordable car insurance coverage may opt for the minimum coverage required by law, although it offers the least protection. For low-income drivers who don’t drive often or for long distances, pay-per-mile insurance policies may also provide affordable coverage.

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

There are no government assistance programs for low-income drivers in Nebraska who need help with the costs of car insurance. Families and individuals seeking to purchase cheap car insurance will need to compare quotes across multiple insurers. MoneyGeek determined the cheapest car insurance for low-income families in Nebraska to help you save on your premiums.

The Cheapest Nebraska Car Insurance Companies for Low-Income Drivers

While determining car insurance rates, insurers do not consider income as a factor. However, other factors like credit score, age and coverage amount play a key role in determining the rates. MoneyGeek’s comparison of the cheapest car insurance providers in Nebraska for low-income families and individuals is based on these factors.

The most affordable car insurance in Nebraska is a minimum coverage policy. MoneyGeek’s analysis shows that GEICO and Farmers Mutual of Nebraska offer the lowest car insurance rates in Nebraska.

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The Cheapest Nebraska Car Insurance Companies for Low-Income Families

Although car insurance costs do not change based on your income, rates can vary significantly based on your credit scores. For example, a single parent with a teen driver and poor credit will pay about $1,214 more than their counterpart with good credit. For couples with a teenage driver, the difference is $1,642 between poor and good credit.

MoneyGeek found that the two cheapest low-income car insurance providers in Nebraska for couples with a teenage driver and poor credit score are:

  • Farmers Mutual of Nebraska: $2,500 per year
  • Progressive: $3,101 per year

If you are a current or retired military member, you can also find cheap car insurance from USAA, the second cheapest in the state at $2,504 per year.

The cheapest low-income car insurance in Nebraska for single parents with a teen driver and poor credit scores is offered by:

  • GEICO: $1,733 per year
  • Farmers Mutual of Nebraska: $1,746 per year

While USAA is the third-cheapest option in Nebraska in this category, policies are only available to military members and their families. Those who qualify pay approximately $1,854 per year.

It is essential to note that earning a low income does not mean you have a poor credit score. You can use the table below to compare prices for your profile across different credit scores.

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  • Company
    Annual Rates
  • GEICO
    $969
  • Farmers Mutual of Nebraska
    $976
  • USAA
    $1,036
  • State Farm
    $1,214
  • American Family
    $1,404
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The Cheapest Nebraska Car Insurance Companies for Low-Income Individuals

Based on our sample 40-year-old driver, car insurance costs in Nebraska vary by $373 for drivers with poor credit scores versus those with a good rating.

The most affordable car insurance for low-income individuals in Nebraska with a poor credit score is from:

  • GEICO: $565 per year
  • Farmers Mutual of Nebraska: $568 per year

USAA is the third-cheapest provider in Nebraska for individuals with a poor credit rating at $569 per year. However, only military members and their families are eligible for USAA policies.

Although you may have a low income, that doesn’t automatically mean your credit score will be poor. Drivers with good credit pay lower premiums for car insurance. For instance, GEICO charges $316 per year on average for individuals with good credit, while Farmers Mutual of Nebraska charges $317.

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  • Company
    Annual Rates
  • GEICO
    $316
  • Farmers Mutual of Nebraska
    $317
  • USAA
    $318
  • State Farm
    $385
  • Farm Bureau Mutual (IA Group)
    $411

The Cheapest Nebraska Car Insurance Companies for Low-Income Students

Young drivers in Nebraska pay higher rates for car insurance due to a lack of driving experience. By default, most student drivers are low-income individuals; however, it’s their inexperience as drivers that increases their premiums, not their income levels.

The cheapest providers of car insurance to young drivers with poor credit scores in Nebraska are:

  • GEICO: $1,310 per year
  • Farmers Mutual of Nebraska: $1,316 per year

USAA is the third-cheapest provider in the state for student drivers with a poor credit rating. The policies cost $1,318 per year on average, but USAA car insurance is only available for members of the military and their families.

Even if your earnings are low, you can still have a good credit score and pay lower amounts for car insurance. Young drivers with good credit, for instance, pay on average $733 per year for a GEICO policy and $736 at Farmers Mutual of Nebraska.

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Good Credit Score

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  • Company
    Annual Rates
  • GEICO
    $733
  • Farmers Mutual of Nebraska
    $736
  • USAA
    $737
  • State Farm
    $891
  • Farm Bureau Mutual (IA Group)
    $952

The Cheapest Nebraska Car Insurance Companies for Low-Income Seniors

If you are a senior driver, you will pay more for car insurance than your middle-aged counterparts. Your rates will also depend on your credit score. Our research using a 70-year-old sample driver shows that senior drivers in Nebraska pay as much as $407 more per year if they have a poor credit score.

The most affordable car insurance companies for low-income seniors in Nebraska with poor credit scores are:

  • Farmers Mutual of Nebraska: $604 per year
  • State Farm: $688 per year

USAA has the second-cheapest car insurance in Nebraska at $644 per year. However, it is exclusively available to retired and current members of the military and their families.

Low income doesn’t necessarily guarantee a poor credit score, and good credit can considerably reduce your car insurance premiums. For example, Farmers Mutual of Nebraska offers its policies at an average of $338 per year if you are a senior with a good credit score. State Farm offers the same at $385 annually.

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Good Credit Score

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  • Company
    Annual Rates
  • Farmers Mutual of Nebraska
    $338
  • USAA
    $360
  • State Farm
    $385
  • GEICO
    $408
  • AAA
    $442

Does Income Affect Car Insurance Rates in Nebraska?

Insurers do not use your income level to determine your car insurance premiums. However, they consider other factors that may be related to income. For instance, if you are a young driver, you will pay higher rates because you are more likely to get involved in an accident, not because you make less than most middle-aged drivers. Because you make less money and can’t afford to pay out-of-pocket for repairs, you may make more claims. Drivers with a history of claims pay more for car insurance.

MoneyGeek assessed the significance of factors that may affect car insurance costs in Nebraska. The top three are:

  • Adding a teen driver.
  • Your age.
  • The coverage levels you select.

Factors such as your credit score and the model of the car are also important.

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

    Adding a teen driver to your policy is the most impactful factor in Nebraska as it increases the rates by 3.4x.

  • Age of Driver

    The age of a driver matters too when it comes to determining car insurance costs in Nebraska. Costs can increase by 2.3x if you are a young driver compared to middle-aged drivers.

  • Coverage Levels

    The coverage amount you purchase can make full coverage car insurance costs in Nebraska 2.2x more expensive than minimum coverage.

  • Credit Score

    Drivers with poor credit scores may pay 2.2x more than those with good credit.

  • Car Model

    Based on your car model, your car insurance can cost twice as much.

Frequently Asked Questions About Low-Income Car Insurance in Nebraska

MoneyGeek responds to the following commonly asked questions about low-income car insurance in Nebraska:

Methodology

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

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.