Cheap Virginia Low-Income Car Insurance for Families and Individuals

There is no government program in Virginia to help low-income drivers obtain car insurance. MoneyGeek ranked the cheapest companies in the state for low-income individuals and families and found that Progressive, Erie and GEICO offer the most affordable policies.

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Last Updated: 4/19/2022
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Your income isn’t a factor in the cost of your car insurance rates. Your age and adding a teen driver to your policy are the most significant influences on price. MoneyGeek calculated the cheapest options for low-income individuals and families based on their credit scores.

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

There’s no government car insurance program in Virginia to assist low-income individuals and families with their car insurance costs. Approximately 10.5% of drivers in the state are uninsured — some of whom may be avoiding buying car insurance because they can’t afford it.

If you’re looking for the cheapest traditional car insurance in Virginia, your best option is a state minimum coverage policy, although it gives you the least protection. You might also consider pay-per-mile car insurance if you don’t drive much, another relatively affordable option for low-income drivers.

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

Since Virginia doesn’t have a government assistance program, the next best solution to get an affordable car insurance policy is to compare quotes across several insurance providers. MoneyGeek broke down the cheapest car insurance companies in the state for low-income drivers looking to save money on car insurance.

The Cheapest Virginia Car Insurance Companies for Low-Income Drivers

Car insurance companies can’t include your income when calculating your car insurance rates. However, other factors usually related to income, such as age and credit score, have a significant effect.

If you want the most affordable car insurance, a state minimum coverage policy may be your best option. MoneyGeek found that Progressive and Erie are the cheapest companies 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 Virginia Car Insurance Companies for Low-Income Families

While car insurance rates aren’t affected by income, low-income families should keep in mind that their credit scores can significantly impact their premiums. A single parent with a poor credit score in Virginia pays $977 per year more than one with good credit. For a couple with a teenager, rates in Virginia differ by $1,376 per year, depending on the credit score.

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

  • Progressive: $2,494 per year
  • Erie: $2,836 per year

In Virginia, USAA is the second cheapest option for a couple with a teenager and poor credit score, offering car insurance at an average of $2,696 per year. However, its policies are only available to retired and current military members and their families.

For single parents with poor credit scores, MoneyGeek found the following cheapest companies:

  • Erie: $1,930 per year
  • GEICO: $1,997 per year

If you have a military background, the cheapest option would be USAA at $1,866 per year on average.

Keep in mind that having a low-income doesn’t necessarily mean you have a poor credit score. Use the table below to find the cheapest options for you.

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  • Company
    Annual Rates
  • USAA
    $1,116
  • Erie
    $1,155
  • GEICO
    $1,195
  • Progressive
    $1,224
  • State Farm
    $1,316
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The Cheapest Virginia Car Insurance Companies for Low-Income Individuals

For our sample 40-year-old driver, rates in Virginia differ by about $293 per year, depending on your credit score. MoneyGeek the following to be the cheapest companies in the state for a driver with a poor credit score:

  • Progressive: $574 per year
  • Erie and GEICO: $603 per year

If you have a military background, USAA would be the cheapest option for you at an average cost of $573 per year.

Just because you’re a low-income driver doesn’t mean you can’t have a good credit score. Policies from Progressive for drivers with good credit scores cost an average of $343 per year, while those from Erie and GEICO cost an average of $361 per year.

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  • Company
    Annual Rates
  • USAA
    $343
  • Progressive
    $343
  • GEICO
    $361
  • Erie
    $361
  • State Farm
    $404

The Cheapest Virginia Car Insurance Companies for Low-Income Students

Since young student drivers lack driving experience, they tend to have higher car insurance rates. While most students generally have low incomes, the higher cost of car insurance is not due to their income levels.

The two cheapest companies offering car insurance for low-income students in Virginia with poor credit scores are:

  • Progressive: $1,453 per year
  • Erie: $1,526 per year

While USAA is the cheapest option in Virginia at $1,451 per year on average, its policies are exclusive to drivers who are members of the military.

Having a low income as a student doesn’t necessarily mean you have a poor credit score. Progressive offers car insurance at an average of $869 per year for students with good credit scores, while Erie offers policies at an average of $913 per year.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $868
  • Progressive
    $869
  • Erie
    $913
  • GEICO
    $914
  • State Farm
    $1,024

The Cheapest Virginia Car Insurance Companies for Low-Income Seniors

Senior drivers in Virginia tend to pay slightly higher car insurance premiums compared to middle-aged drivers. Their credit scores may also affect the cost of their car insurance. For our sample 70-year-old driver, rates in Virginia differ by $330 per year, depending on your credit score.

The two cheapest companies offering car insurance for low-income seniors in Virginia with poor credit scores are:

  • Erie: $619 per year
  • Progressive: $650 per year

Being a low-income senior doesn’t necessarily mean you have a poor credit score. For those with good credit scores, Erie offers car insurance around $370 per year, while Progressive offers policies around $389 per year.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • Erie
    $370
  • Progressive
    $389
  • State Farm
    $404
  • USAA
    $414
  • Nationwide
    $484

Does Income Affect Car Insurance Rates in Virginia?

Insurance companies can’t use your income in calculating your car insurance rates. However, other factors related to income may affect the cost of your premiums in Virginia.

For example, younger drivers face higher rates since they’re more likely to get into an accident. They also likely have lower incomes, so tend to make more claims because they can’t afford to pay for out-of-pocket repairs. The problem is that insurers charge more for drivers with a claims history.

The most important factors in terms of how your car insurance rates in Virginia can be affected are:

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

Other factors, like 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

    Adding a teen driver to your policy can make your Virginia car insurance 3.5x more expensive.

  • Age of Driver

    In Virginia, car insurance rates can vary by 2.5x for young drivers versus their middle-aged counterparts.

  • Credit Score

    Drivers with a poor credit score in Virginia may pay 2x more than those with a good credit score.

  • Coverage Levels

    Your coverage levels can affect the cost of your premiums. A full coverage policy can double the cost of your car insurance rates in Virginia than the state minimum coverage policy.

  • Car Model

    The model of your car in Virginia can make your insurance twice as expensive.

Frequently Asked Questions About Low-Income Car Insurance in Virginia

Below, MoneyGeek answers some frequently asked questions about low-income car insurance in Virginia.

Methodology

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

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.