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


Updated: October 2, 2024

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For drivers in Vermont with low income, Allstate offers the cheapest minimum coverage car insurance at $33 per month. It also has the best rates for families with teens, at around $31 per month. Although Vermont doesn't offer state-backed insurance pools for drivers with low income, these affordable plans can help manage costs.

A minimum coverage policy is usually the cheapest, but it may not cover all expenses in an at-fault accident. Consider pay-per-mile insurance if you don't drive much, an even more affordable option in the Green Mountain State.

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Cheapest for Individuals With Low Income

Allstate is the cheapest car insurance provider in Vermont for individual drivers with low income and poor credit history. It offers minimum coverage at an average premium of $33 per month or $398 per year.

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Cheapest for Families With Low Income

Allstate is the cheapest car insurance provider in Vermont for families with low income. Its minimum coverage policy costs around $31 per month or $369 per year.

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Cheapest for Senior Drivers With Low Income

Allstate is the cheapest car insurance provider in Vermont for seniors with low income and poor credit scores. It offers minimum coverage at an average premium of $38 per month or $458 per year.

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

7,416Quotes Analyzed
 
9Companies Compared
 
5ZIP Codes

Does Vermont Offer Low-Income Insurance?

Car insurance companies in Vermont do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history and type of car. At-fault accidents and moving violations can increase your rates. The best way to find the cheapest rates is to compare quotes from several insurance companies.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, if you rarely drive, pay-per-mile insurance might be the best option to save money. MoneyGeek rounded up the cheapest insurers for drivers with low income in Vermont to help you save.

Minimum Car Insurance Requirements in Vermont

To legally operate a vehicle in Vermont, you're required to carry the state's minimum car insurance requirements that adhere to the following liability coverage limits:

  • $25,000 for bodily injury liability per person
  • $50,000 for bodily injury liability per accident
  • $10,000 for property damage liability per accident
  • $50,000 uninsured motorist bodily injury per person
  • $100,000 uninsured motorist bodily injury per accident
  • $10,000 uninsured/Underinsured property damage coverage

If budget constraints are a concern, a liability-only car insurance policy can be a cost-effective option. It covers expenses for the other driver if you're at fault in an accident, but it doesn't cover damages to your own vehicle. To protect your own car, consider a full coverage car insurance policy, which includes collision and comprehensive coverages. These coverages safeguard your vehicle against various non-collision incidents, such as theft, natural disasters or being hit by an animal like a deer.

Assessing the risks and benefits of different coverages is crucial to determining the best policy for your needs.

Cheapest Car Insurance for Individuals With Low Income in Vermont

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

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

  • Allstate: $398 per year; $33 per month
  • Concord Group: $476 per year; $40 per month

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

  • State Farm: $218 per year; $18 per month
  • Vermont Mutual: $236 per year; $20 per month

Driving without insurance in Vermont 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
AllstateAnnual Premium$398Monthly Premium$33
Concord GroupAnnual Premium$476Monthly Premium$40
Vermont MutualAnnual Premium$533Monthly Premium$44
American FamilyAnnual Premium$550Monthly Premium$46
NationwideAnnual Premium$562Monthly Premium$47
ProgressiveAnnual Premium$581Monthly Premium$48
State FarmAnnual Premium$683Monthly Premium$57
GEICOAnnual Premium$735Monthly Premium$61
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 Vermont

Car insurance rates in Vermont don't depend on your income, but your family situation does play a role. For instance, a single parent with a teen faces an annual premium of $647, while a married couple with a teen can secure more pocket-friendly coverage at $369 per year — a difference of $278 more each year.

The most affordable car insurance for married couples with a teen in the Green Mountain State comes from:

  • Allstate: $369 per year; $31 per month
  • State Farm: $422 per year; $35 per month

Single parents looking for minimum coverage will find these rates:

  • Allstate: $647 per year; $54 per month
  • State Farm: $672 per year; $56 per month

The gap in rates between married couples and single parents underscores the impact of household status on insurance costs. A good credit score is also key, as it can unlock doors to more affordable premiums.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
AllstateAnnual Premium$369Monthly Premium$31
State FarmAnnual Premium$422Monthly Premium$35
Concord GroupAnnual Premium$550Monthly Premium$46
GEICOAnnual Premium$604Monthly Premium$50
NationwideAnnual Premium$615Monthly Premium$51
ProgressiveAnnual Premium$695Monthly Premium$58

Cheapest Car Insurance for Seniors With Low Income in Vermont

Car insurance premiums generally decrease as you reach the early senior years, typically around ages 55 to 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:

  • Allstate: $458 per year; $38 per month
  • Concord Group: $472 per year; $39 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. Vermont has no specific laws or guidelines for seniors getting car insurance.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
AllstateAnnual Premium$458Monthly Premium$38
Concord GroupAnnual Premium$472Monthly Premium$39
ProgressiveAnnual Premium$524Monthly Premium$44
Vermont MutualAnnual Premium$533Monthly Premium$44
NationwideAnnual Premium$539Monthly Premium$45
American FamilyAnnual Premium$612Monthly Premium$51
GEICOAnnual Premium$642Monthly Premium$53
State FarmAnnual Premium$647Monthly Premium$54
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 Vermont?

Your income doesn't directly affect car insurance rates in Vermont. However, if a low income leads to a poor credit record, this can result in higher rates. Conversely, a good credit score can help you get lower 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 can increase your rates. Insurers see a clean driving record as a sign of lower risk.

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    Age and gender

    Younger drivers and males often face higher rates due to statistical risk factors. Older drivers usually get better rates.

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    Credit history

    A poor credit history can lead to higher rates. Insurers believe a good credit record indicates responsible behavior.

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    Location

    Living in urban areas can mean higher rates due to increased risk of accidents and theft. Rural areas tend to have lower rates.

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    Vehicle type

    Luxury or sports cars often have higher rates. Safer, less expensive cars usually cost less to insure.

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    Coverage levels

    Higher coverage levels mean higher costs. State minimum coverage is cheaper but offers less protection.

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    Insurance company

    Different insurers have unique methodologies and discounts. Comparing quotes can help you find the best rate.

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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 Vermont

There are several ways to find affordable car insurance in Vermont. Whether or not you qualify for state-sponsored programs for drivers with low income, here are some tips to lower your car insurance premiums:

1
Choose minimum coverage

Opting for state-mandated minimum coverage can help you save on premiums while ensuring you meet the legal requirements to drive. This basic coverage is often the most affordable option available.

2
Comparison shop

Get quotes from multiple insurers to compare rates and discounts. Shopping locally might offer the lowest rates available in your area, potentially saving you hundreds of dollars a year.

3
Look for discounts

Many insurance companies offer discounts for various factors. Being a good student, having a safe driving record, being a military member or bundling your auto insurance with other policies can lead to significant savings.

4
Increase your deductible

Opting for a higher car insurance deductible can significantly reduce your monthly premium. Make sure you can afford this amount out of pocket in case you need to file a claim.

5
Consider pay-per-mile insurance

Pay-per-mile insurance is an excellent option if you’re a low-mileage driver. You pay a base rate plus a per-mile fee, so you only pay for the miles you drive.

6
Bundle your policies

Bundling your auto policy with other insurance needs, such as homeowners or renters insurance, can often lead to discounts. The best home and auto bundles can save you around $496 each year.

7
Drive a cheaper car

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

FAQ: Low-Income Car Insurance in Vermont

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

Does Vermont have a state-backed low-income car insurance program?
How can low-income families get affordable car insurance in Vermont?
Does your income affect the cost of car insurance in Vermont?
What are the benefits of usage-based telematics programs for drivers with low income in Vermont?

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.