Cheap New York Low-Income Car Insurance for Families and Individuals

New York does not offer government programs to help low-income drivers purchase car insurance. MoneyGeek’s research does show, however, that low-income individuals and families can look to GEICO for the state’s most affordable car insurance policies.

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Last Updated: 4/19/2022
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Car insurance providers don’t use your income when calculating the price of your premiums. In New York, the factors that affect car insurance rates the most are your credit score and adding a teenage driver to your policy. MoneyGeek found the cheapest car insurance companies for low-income individuals and families in New York, evaluating rates both for people with poor and good credit scores.

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

New York doesn’t have a program to assist low-income drivers purchase car insurance. Research reveals that approximately 4.1% of drivers in New York are uninsured. Some are likely not to buy car insurance because they find it too expensive.

The cheapest traditional car insurance is that with minimum coverage. Pay-per-mile policies are also an affordable option for low-income individuals who rarely drive.

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

There is no government assistance program to help low-income drivers purchase car insurance in New York. Despite that, you should still get car insurance if you’re driving — this is to protect you financially in case of an accident.

You can find affordable car insurance in New York by comparing offers from various car insurance companies. To help you look for a policy that fits your needs and budget, MoneyGeek evaluated the cheapest car insurance companies in New York for low-income individuals.

The Cheapest New York Car Insurance Companies for Low-Income Drivers

In New York, insurance companies can’t factor your income when determining your car insurance rates. However, they may look at income-related factors, such as age and credit score, which can greatly influence the price of your premiums.

If you’re a low-income individual in New York, the cheapest car insurance available for you is a minimum coverage policy. MoneyGeek’s research found that Erie’s policies are the cheapest available for low-income families and seniors, while GEICO’s policies are the most affordable in the market for low-income adults and students.

We evaluated the cheapest minimum coverage policies for low-income individuals and families of different ages in the following sections.

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The Cheapest New York Car Insurance Companies for Low-Income Families

Your car insurance rate is not affected by your income, but it is significantly influenced by your credit score.

In New York, if you’re a single parent with a poor credit score, you’ll pay $8,454 more per year for car insurance than a single parent with a good credit score. Similarly, if you’re a couple with a child, your car insurance can be $11,081 higher per year by having a poor credit score instead of a good credit score.

MoneyGeek’s analysis shows that in New York, the cheapest insurance policies for single parents with poor credit scores come from:

  • Erie: $7,987 per year
  • GEICO: $8,002 per year

Likewise, a couple with a child and poor credit score can check the following companies for the most affordable car insurance in New York:

  • Erie: $10,937 per year
  • Allstate: $11,082 per year

USAA also offers cheap car insurance policies for low-income individuals, but it’s only available for military members and their families.

Of course, having a low income doesn’t mean you have a poor credit score. You can use the table below to look for the most affordable offers for your profile.

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Single parent w/ a kid

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  • Company
    Annual Rates
  • USAA
    $2,886
  • Erie
    $3,749
  • GEICO
    $3,755
  • Allstate
    $4,621
  • State Farm
    $5,486
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The Cheapest New York Car Insurance Companies for Low-Income Individuals

An average 40-year-old driver in New York pays $2,520 more per year for their car insurance with a poor credit score instead of a good one.

If you’re a low-income individual with a poor credit score, New York’s most affordable car insurance providers are:

  • GEICO: $2,398 per year
  • Erie: $2,487 per year

Low-income drivers can also find cheap car insurance policies from USAA, but it’s only available for military members and their families.

Your low-income status won’t always result in a poor credit score. In New York, car insurance for low-income individuals with good credit scores costs approximately $1,125 per year for GEICO and around $1,167 per year for Erie.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $929
  • GEICO
    $1,125
  • Erie
    $1,167
  • Allstate
    $1,309
  • Progressive
    $1,578

The Cheapest New York Car Insurance Companies for Low-Income Students

College students tend to have higher car insurance rates, but it’s not because of low income. Rather, insurance providers see younger drivers as riskier to insure due to their relative driving inexperience compared to older drivers.

MoneyGeek’s study found that the following companies offer the most affordable car insurance policies in New York for low-income students who have poor credit scores:

  • GEICO: $5,879 per year
  • Erie: $6,098 per year

A low income doesn’t have to mean a poor credit score. In New York, young drivers with good credit scores can purchase car insurance from GEICO for around $2,759 per year and from Erie for roughly $2,862 per year.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $2,279
  • GEICO
    $2,759
  • Erie
    $2,862
  • Allstate
    $3,208
  • Progressive
    $3,868

The Cheapest New York Car Insurance Companies for Low-Income Seniors

On average, car insurance rates for seniors are slightly more expensive compared to rates for middle-aged drivers. Beyond their age, a senior’s credit score also affects the price of their insurance premiums. An average 70-year-old driver in New York will pay an average of $3,021 more per year for their car insurance if they have a poor instead of good credit score.

MoneyGeek’s analysis indicates that low-income seniors in New York can find the most affordable car insurance from these companies:

  • Erie: $2,687 per year
  • GEICO: $2,812 per year

USAA also provides cheap car insurance policies for low-income seniors, but it’s only available for military members and their families.

Just because a senior has a low income doesn’t mean they have a bad credit score. For seniors in New York with a good credit score, Erie costs approximately $1,261 per year, while GEICO costs about $1,320 per year.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $1,187
  • Erie
    $1,261
  • GEICO
    $1,320
  • Allstate
    $1,471
  • Nationwide
    $1,633

Does Income Affect Car Insurance Rates in New York?

Your income isn’t a factor when insurance companies compute your car insurance rates. Nonetheless, income-related factors can affect your premium prices.

If you’re a college student, for example, you probably have a low income since you’re still studying. However, the reason your car insurance is expensive is because of your relative inexperience on the road, not your low income.

MoneyGeek analyzed income-related factors and how they influence car insurance rates in New York. We found that the following have the most effect:

  • Your age.
  • Your score.
  • Adding a teen driver to your policy.

Other factors, such as car model and driving record, are also important and insurers consider them when calculating rates.

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

    Adding a teen driver is the most important factor in New York, and can make your rates 2.9x more expensive.

  • Age of Driver

    In New York, your age is an important factor that can increase your rates by 2.5x.

  • Coverage Levels

    The amount of coverage you buy affects your car insurance rates in New York, increasing them by 1.6x.

  • Car Model

    In New York, your car model can make your car insurance twice as expensive.

  • Credit Score

    In New York, having a poor credit score can result in a 2.7x higher rate compared to drivers with excellent scores.

Frequently Asked Questions About Low-Income Car Insurance in New York

MoneyGeek answers some frequently asked questions to help low-income individuals in New York find cheap car insurance.

Methodology

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

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


expert-profile

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.