Cheap Vermont Low-Income Car Insurance for Families and Individuals

In Vermont, there’s no government assistance program for low-income drivers seeking car insurance. MoneyGeek analyzed different car insurance companies and found that Vermont Mutual offers the cheapest car insurance for low-income individuals and families in Vermont.

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Last Updated: 8/15/2022
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Your income is not considered when insurers calculate your car insurance rates. The most significant factors that affect the cost of your premiums are the addition of a teen driver and your age. MoneyGeek estimated how much low-income individuals and families would have to pay for car insurance based on their credit scores.

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

Vermont doesn’t have a government program to assist low-income individuals and families with their car insurance expenses. As it stands, about 8.8% of drivers in the state are uninsured — some of whom may be avoiding buying car insurance because it’s too expensive.

If you want cheap car insurance in Vermont, your best option may be a state minimum coverage policy. If you don’t drive much, you may consider pay-per-mile car insurance, which is another affordable option for low-income drivers.

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

Since there’s no government car insurance program in Vermont, the best solution for cheap car insurance is to compare quotes across several insurance providers. MoneyGeek broke down the most affordable car insurance companies in the state for low-income drivers who want to save money on a policy.

The Cheapest Vermont Car Insurance Companies for Low-Income Drivers

Car insurance companies in Vermont can’t use your income in determining your car insurance rates. What they do consider are other factors that may be related to income, such as age and credit score.

A minimum coverage policy is your best option to get the most affordable car insurance. MoneyGeek found that Vermont Mutual is the cheapest company for different types of low-income drivers. We analyzed the cheapest minimum car insurance for low-income families and individuals of different ages.

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The Cheapest Vermont Car Insurance Companies for Low-Income Families

While your car insurance rates aren’t affected by income, your credit score can certainly impact how much you pay for your policy. A single parent in Vermont with a teenage and poor credit pays on average $928 per year more than one with a good credit score. A couple with a teenager and poor credit will pay $1,286 more per year for car insurance in Vermont than one with good credit.

MoneyGeek researched the two cheapest companies for a couple with a teenager and poor credit score:

  • Vermont Mutual: $1,557 per year
  • Allstate: $1,821 per year

For families with military members or veterans, the cheapest option would be USAA at an average cost of $1,209 per year.

MoneyGeek also researched the two cheapest companies for a single parent with a poor credit score:

  • Vermont Mutual: $1,127 per year
  • Allstate: $1,296 per year

USAA has the cheapest policies at $902 per year on average. However, we did not include it in our list since its policies are exclusive to military members and their families.

Having a low income certainly doesn’t mean you have a poor credit score. Use the table below to find the cheapest options for your profile.

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  • Company
    Annual Rates
  • USAA
    $503
  • Vermont Mutual
    $628
  • Allstate
    $722
  • Concord Group
    $973
  • State Farm
    $1,054
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The Cheapest Vermont Car Insurance Companies for Low-Income Individuals

For our sample individual 40-year-old driver, rates in Vermont differ by $315 per year, depending on your credit score. MoneyGeek found that the two cheapest companies for a driver with a poor credit score:

  • Vermont Mutual: $381 per year
  • Allstate: $448 per year

If you are in the military, your cheapest option would be USAA, which offers policies at $296 per year on average.

Just because you have a low income doesn’t mean you can’t have a good credit score. Policies from Vermont Mutual for drivers with good credit scores cost an average of $212 per year, while those from Allstate cost an average of $249 per year.

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  • Company
    Annual Rates
  • USAA
    $165
  • Vermont Mutual
    $212
  • Allstate
    $249
  • State Farm
    $357
  • Concord Group
    $366

The Cheapest Vermont Car Insurance Companies for Low-Income Students

All young student drivers in Vermont tend to pay more for car insurance due to their lack of experience on the road. It has nothing to do with how much money they make, although most students are typically low-income.

MoneyGeek researched the two cheapest companies for a student driver with a poor credit score:

  • Vermont Mutual: $943 per year
  • Allstate: $1,108 per year

In Vermont, USAA offers the cheapest option at $733 per year on average. However, its policies are only available to those in the military and their families.

Just because you’re a low-income student doesn’t mean you have a poor credit score. Vermont Mutual offers car insurance for students with good credit scores at an average cost of $525 per year, while Allstate offers policies at an average of $617 per year.

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  • Company
    Annual Rates
  • USAA
    $408
  • Vermont Mutual
    $525
  • Allstate
    $617
  • State Farm
    $883
  • Concord Group
    $906

The Cheapest Vermont Car Insurance Companies for Low-Income Seniors

Senior drivers tend to pay slightly higher car insurance rates compared to their middle-aged counterparts, and their credit scores also impact their premiums. For our sample 70-year-old driver in Vermont, you’ll pay $321 per year more with a poor credit score than you would with a good one.

MoneyGeek found that the two cheapest companies for a senior with a poor credit score are the following:

  • Vermont Mutual: $381 per year
  • Allstate: $505 per year

For seniors who are current or retired members of the military, USAA offers the cheapest policies at an average of $351 per year.

Having a low income doesn’t define your credit score. Vermont Mutual offers car insurance for seniors with good credit scores at $212 per year on average, while Allstate offers policies at $281 per year on average.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $195
  • Vermont Mutual
    $212
  • Allstate
    $281
  • State Farm
    $353
  • GEICO
    $379

Does Income Affect Car Insurance Rates in Vermont?

Insurance companies in Vermont can’t use income in calculating your car insurance rates. However, other factors related to income can have a significant impact.

For instance, younger people pay higher rates because they’re more likely to get into an accident. They may also have lower incomes since they’re only starting their careers. Low-income drivers, in turn, tend to make more claims because they can’t afford to pay for repairs out-of-pocket. The problem is that insurers usually charge more for those with a history of claims.

MoneyGeek analyzed the following factors related to low income and how they affect car insurance rates in Vermont:

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

Other factors, such as your coverage levels and car model, are also important in determining your car insurance rates.

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

    In Vermont, adding a teen driver can make your car insurance rate 3.2x more expensive.

  • Age of Driver

    Your age is a significant factor in determining the cost of your car insurance. In Vermont, rates can vary by 2.5x for young drivers versus their middle-aged counterparts.

  • Credit Score

    Drivers with a poor credit score in Vermont may pay 2.3x more than those with good credit.

  • Coverage Levels

    Buying a full coverage policy in Vermont will cost 2.2x more than the state minimum policy.

  • Car Model

    Depending on your car’s model, insurance could be twice as expensive in Vermont.

Frequently Asked Questions About Low-Income Car Insurance in Vermont

Below, MoneyGeek answers some frequently asked questions about low-income car insurance in Vermont to help you better understand how it works.

Methodology

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

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.