Cheap Rhode Island Low-Income Car Insurance for Families and Individuals

Rhode Island does not have a government car insurance program for low-income drivers. MoneyGeek compared quotes from several major insurers and found State Farm offers the cheapest car insurance for low-income families and individuals in Rhode Island.

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Last Updated: 11/25/2022
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In Rhode Island, insurers don’t consider your income when calculating premiums. They focus on other factors; the two most influential in Rhode Island are adding a teen driver to your policy and your age.

MoneyGeek found companies offering cheap car insurance for low-income families and individuals in Rhode Island if they have a poor or good credit rating.

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

Rhode Island doesn't have a government car insurance program for low-income families and individuals. The state does require insurance, but, potentially because of the cost, 16.5% of its drivers don’t have insurance.

If you need cheap, low-income car insurance in Rhode Island, purchasing a policy with state minimum coverage is a good option. You can also consider going with pay-per-mile insurance in Rhode Island if you don’t put too many miles on your car every month.

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

There isn’t a government program in Rhode Island to assist low-income drivers with car insurance costs. To get affordable car insurance in Rhode Island, compare quotes from different companies.

To help low-income drivers save money, MoneyGeek found what companies offer the cheapest car insurance in Rhode Island.

The Cheapest Rhode Island Car Insurance Companies for Low-Income Drivers

Car insurance companies in Rhode Island can’t use income when setting policy premiums. However, factors like age and credit score impact drivers rates. And both may connect to income in some way.

State minimum coverage has the lowest possible premium. Based on MoneyGeek’s analysis, State Farm offers the cheapest car insurance for low-income drivers in Rhode Island.

MoneyGeek also determined the best company for low-income families and individuals of different age groups to purchase a state minimum car insurance policy.

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The Cheapest Rhode Island Car Insurance Companies for Low-Income Families

Income isn’t a factor insurers consider when setting premiums, but a family’s credit score is an important factor. MoneyGeek’s sample single parent pays around $2,198 more per year if they have a poor credit score than if they have a good credit standing. For a couple with a child, car insurance rates are around $3,077 higher because of a poor credit score than with a good credit score.

On average, the companies offering cheap car insurance for a low-income couple with a child and poor credit in Rhode Island are:

  • State Farm: $3,396 per year
  • Amica Mutual: $5,139 per year

If the family has a military background, USAA is the most affordable option at roughly $3,238 per year.

For a single parent with poor credit, the companies offering the average cheapest car insurance are:

  • State Farm: $2,237 per year
  • Amica Mutual: $3,621 per year

USAA is also an affordable option at around $2,381 per year, but only a present or former military single parent may qualify.

Having a low income doesn’t automatically mean you have poor credit. You can use the table below to find the most affordable option for your profile.

Sort by family type:

Single parent w/ a kid

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • State Farm
    $1,323
  • USAA
    $1,408
  • Amica Mutual
    $2,142
  • Travelers
    $2,979
  • GEICO
    $3,248
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The Cheapest Rhode Island Car Insurance Companies for Low-Income Individuals

MoneyGeek compared quotes for a sample 40-year-old driver in Rhode Island to determine the difference in premium based on credit score. If our sample driver has poor credit, they end up paying around $727 more per year than with a good credit score.

On average, the companies offering cheap car insurance in Rhode Island for low-income individuals with poor credit scores are:

  • State Farm: $750 per year
  • Amica Mutual: $1,214 per year

USAA, which is second-cheapest at around $765 per year, is another option for low-income drivers who are current or former military members.

Remember, a low income does not automatically translate into having a poor credit score. If you have a good credit score, State Farm is around $443 a year and Amica Mutual about $718 per year. USAA costs around $452 annually for eligible drivers.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • State Farm
    $443
  • USAA
    $452
  • Amica Mutual
    $718
  • Travelers
    $991
  • Allstate
    $1,046

The Cheapest Rhode Island Car Insurance Companies for Low-Income Students

Typically, insurers offer student drivers higher rates since they’re more likely to get into accidents due to inexperience. Even though they do not pay more because of their income, young drivers in college usually have lower incomes, and purchasing car insurance may eat up a significant part of their earnings.

On average, the cheapest car insurance for low-income students in Rhode Island with poor credit is from:

  • State Farm: $1,817 per year
  • Amica Mutual: $2,942 per year

Student drivers from military families may consider USAA as another affordable option, costing around $1,854 per year.

Low income and poor credit do not automatically go hand-in-hand. Student drivers with good credit can purchase a policy from State Farm at around $1,075 per year, Amica Mutual at roughly $1,740 annually, and USAA, if eligible, at around $1,097 a year.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • State Farm
    $1,075
  • USAA
    $1,097
  • Amica Mutual
    $1,740
  • Travelers
    $2,403
  • Allstate
    $2,534

The Cheapest Rhode Island Car Insurance Companies for Low-Income Seniors

Age is a factor that plays into premium prices, resulting in car insurance rates for seniors usually being slightly higher than middle-aged drivers. If they have poor credit scores, it causes their premiums to become more expensive. For example, MoneyGeek’s sample 70-year-old driver with a poor credit score pays around $798 more each year in Rhode Island than if they have a good credit score.

On average, the cheapest car insurance for low-income seniors in Rhode Island with poor credit scores is with:

  • State Farm: $774 per year
  • Amica Mutual: $1,699 per year

Seniors with a military background may qualify for USAA at around $897 a year.

Not all seniors have poor credit scores. With good credit, a low-income senior driver in Rhode Island pays State Farm around $458 per year, Amica Mutual roughly $1,005 annually, and, if eligible, USAA around $531 a year.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • State Farm
    $458
  • USAA
    $531
  • Amica Mutual
    $1,005
  • GEICO
    $1,133
  • Allstate
    $1,188

Does Income Affect Car Insurance Rates in Rhode Island?

Insurers in Rhode Island can’t consider income when calculating car insurance premiums, but there are factors often connected to income that may significantly affect your rates.

For example, young adults usually pay higher premiums because their inexperience may lead to more accidents, making them riskier to insure. Unfortunately, they may not earn a lot since they’re just starting their careers. This combination may make purchasing car insurance a challenge.

MoneyGeek looked into factors related to income and explored how these may affect car insurance premiums in Rhode Island. Our study showed that the factors significantly affecting rates are:

  • Adding a teen driver.
  • Age of driver.
  • Credit score.

Coverage levels and car model also contribute to higher premiums.

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

    Most insurers consider teen drivers riskier to insure. Adding one to your policy may lead to paying 3x more for your premium.

  • Age of Driver

    A young driver pays around 2.4x times more than a middle-aged driver in Rhode Island.

  • Credit Score

    Rhode Island drivers with poor credit pay 2.1x more for car insurance than those with good credit.

  • Coverage Levels

    A policy with state minimum coverage costs 2x less than full coverage car insurance.

  • Car Model

    The model of your car could result in paying 2x more than someone else.

Frequently Asked Questions About Low-Income Car Insurance in Rhode Island

There may be some confusion regarding low-income car insurance in Rhode Island. Below, MoneyGeek answers the most commonly asked questions to provide you with the necessary information to get low-income car insurance in Rhode Island for individuals or families.

Methodology

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

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.


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