Cheap Pennsylvania Low-Income Car Insurance for Families and Individuals

Pennsylvania doesn’t have a government assistance program to help low-income drivers with the cost of car insurance. MoneyGeek ranked car insurance providers across the state to help low-income drivers looking for savings. The cheapest provider is Erie for low-income families and GEICO for low-income individuals.

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Last Updated: 4/19/2022
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Income is not used when calculating your car insurance premium. Instead, your age, the level of coverage you select and adding a teen driver to your policy are the most significant factors that impact your rates. MoneyGeek found the cheapest car insurance for low-income individuals and families in Pennsylvania, with both poor and good credit scores.

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

Pennsylvania doesn’t have a government car insurance program to support low-income individuals and families with the cost of car insurance. Uninsured drivers might not be covered because they can’t afford the premiums. Although required in nearly every state nationwide, 6% of Pennsylvania drivers are uninsured.

If you’re looking for savings on car insurance premiums in Pennsylvania, you should note that the cheapest policy is typically a minimum coverage policy. But if you don’t drive very often, you might also consider another affordable option, which is pay-per-mile insurance coverage.

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

Since there are no government assistance programs for low-income drivers in Pennsylvania, the next best solution is to shop around and compare quotes from several car insurance companies. MoneyGeek analyzed the cheapest car insurance companies for low-income drivers looking to save money on their auto insurance policy.

The Cheapest Pennsylvania Car Insurance Companies for Low-Income Drivers

Car insurance providers do not consider your income when calculating the cost of insurance. However, factors like your age and credit score are included.

The cheapest car insurance you can buy is a policy with minimum coverage, but it provides the least protection. MoneyGeek found that GEICO and Erie are the cheapest car insurance companies for low-income drivers in Pennsylvania.

MoneyGeek broke down the most affordable policy for low-income families and individuals based on the age of the driver and compared rates based on credit scores.

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The Cheapest Pennsylvania Car Insurance Companies for Low-Income Families

Car insurance rates aren’t determined by income, but low-income drivers should remember that their credit score plays a crucial role in their insurance rates.

For example, our sample single parent with a teen driver and poor credit in Pennsylvania pays approximately $2,005 more per year than if they had good credit. A couple with one teenage driver and poor credit will pay $2,970 per year more than if they had a good credit score.

The two most affordable car insurance companies in Pennsylvania for a couple with a teen driver and poor credit are:

  • Erie: $4,337 per year
  • GEICO: $5,360 per year

In Pennsylvania, USAA has the cheapest car insurance for this profile at $2,836 per year on average. We excluded the insurer from our rankings because USAA is exclusive to veterans, active military members and their families.

The two cheapest car insurance companies in Pennsylvania for single parents with a teen driver and poor credit score are:

  • GEICO: $2,784 per year
  • Erie: $2,928 per year

USAA offers the most affordable car insurance coverage on average at $1,914 per year. However, its policies are only available to military members and their families.

Remember that you don’t necessarily have poor credit if you are low-income. Below, the table will show the cheapest options for your profile.

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Single parent w/ a kid

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  • Company
    Annual Rates
  • USAA
    $1,047
  • GEICO
    $1,523
  • Erie
    $1,601
  • State Farm
    $1,827
  • Travelers
    $2,313
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The Cheapest Pennsylvania Car Insurance Companies for Low-Income Individuals

In Pennsylvania, rates for our sample 40-year-old driver cost approximately $1,464 per year with a poor credit score compared to a good one. The two cheapest car insurance companies in the state for this driver profile are:

  • GEICO: $1,023 per year
  • Erie: $1,076 per year

Although USAA offers the cheapest coverage on average at $704 per year, it is only available to current and former military members and their families.

If you have a low income, it doesn’t mean you automatically have a poor credit score. Good credit can make a big difference in determining how much you pay for your insurance. The cheapest insurance for 40-year-old individual drivers with good credit is from GEICO at an average of $560 per year and Erie at $589.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $385
  • GEICO
    $560
  • Erie
    $589
  • State Farm
    $671
  • Travelers
    $850

The Cheapest Pennsylvania Car Insurance Companies for Low-Income Students

Young student drivers are typically charged higher rates than older drivers due to their lack of driving experience and are considered high risk. They aren’t charged by how much they earn.

For young drivers with poor credit, the two cheapest car insurance companies in Pennsylvania are:

  • GEICO: $2,194 per year
  • Erie: $2,308 per year

USAA offers the cheapest policy in Pennsylvania for this profile at $1,509 per year on average; however, it is limited to military members and their families.

You can have good credit despite having a low income, reducing your insurance costs significantly. On average, the cheapest insurance companies in Pennsylvania for young drivers with good credit are:

  • GEICO: $1,200 per year
  • Erie: $1,262 per year

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $825
  • GEICO
    $1,200
  • Erie
    $1,262
  • State Farm
    $1,440
  • Travelers
    $1,824

The Cheapest Pennsylvania Car Insurance Companies for Low-Income Seniors

The cost of car insurance rates is slightly higher for senior drivers when compared to middle-aged drivers. As with all drivers, a senior driver’s credit score greatly influences their auto insurance quote. Our sample 70-year-old driver in Pennsylvania pays $774 per year more with poor credit compared to a good credit score.

For senior drivers with poor credit, the two cheapest auto insurance providers in Pennsylvania are:

  • GEICO: $1,073 per year
  • Erie: $1,143 per year

Although USAA is the cheapest provider for this profile in the state at an average of $809 per year, it is only available to veterans and current military members and their families.

Even if you are a low-income senior, it doesn’t mean you have poor credit. Your credit score can greatly change the cost of your car insurance. For seniors with good credit in Pennsylvania, car insurance from GEICO is $587 per year on average and from Erie is $625.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $443
  • GEICO
    $587
  • Erie
    $625
  • State Farm
    $651
  • Nationwide
    $911

Does Income Affect Car Insurance Rates in Pennsylvania?

Auto insurance providers do not include your income as a factor when computing car insurance rates. However, other factors related to income may influence the outcome.

One scenario is age. Younger drivers are charged more since they are considered high risk. While most young drivers are either still in school or are just starting their careers, they are often low-income. However, it’s their lack of driving experience and not their income that increases their premiums.

Meanwhile, individuals or families with lower incomes may make more claims because they can’t always afford to pay for repairs out-of-pocket. When insurers account for this, they charge more for drivers with a claims history and not because of their income.

MoneyGeek breaks down factors to see how they affect Pennsylvania car insurance rates. The most significant are:

  • Your credit score.
  • The coverage level you select.
  • Adding a teen driver to your policy.

Your age and even your car model also play a significant role.

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

    When adding a teen driver to your policy in Pennsylvania, it costs 3x more.

  • Coverage Levels

    A full-coverage policy will cost 2.4x more than the state minimum in Pennsylvania.

  • Credit Score

    In Pennsylvania, drivers with poor credit pay 2.3x more than those with good credit.

  • Age of Driver

    Pennsylvania rates may cost 2.1x more for young drivers than middle-aged drivers.

  • Car Model

    Owning the latest car model in Pennsylvania can make your car insurance premium twice as expensive.

Frequently Asked Questions About Low-Income Car Insurance in Pennsylvania

MoneyGeek answers some frequently asked questions about low-income car insurance in Pennsylvania below.

Methodology

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

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.