What to Do if You Can’t Afford Car Insurance

If car insurance rates feel too high, there are ways to lower costs. MoneyGeek shares key strategies to help you find more affordable coverage. Simple steps like comparing quotes and adjusting coverage limits are quick to try. Improving your credit score or clearing driving violations from your record may take longer, often a few months to a year.

Insurance rates vary by company, so compare quotes from multiple insurers to find a better deal. Even if you’ve had the same insurer for years, you may find lower rates elsewhere.

The table below shows the cheapest options for different driver profiles.

Discounts can reduce your premiums, but the final quote matters most. Companies with many discounts may not always offer the lowest prices. Comparing rates and offers from multiple insurers helps you find the most affordable policy.

If you drive an older car with low market value, paying for collision and comprehensive insurance might not be worth it. These coverages pay to repair or replace your vehicle, but the payout may not justify the cost of a car worth only a few thousand dollars. 

For example, if your car is valued at $2,000 and you’re paying $600 annually for full coverage, dropping collision and comprehensive while keeping liability insurance could save you money. Liability coverage, required in most states, covers damage you cause to others and keeps you legal on the road.

Raising your deductible — the amount you pay out of pocket before insurance covers a claim — can help lower your premiums. For example, increasing your deductible from $500 to $1,000 might reduce your rate, but it also means paying more if you file a claim. Ensure you can afford the higher deductible in case of an accident.

Some insurers offer usage-based or pay-per-mile programs that track your driving habits and mileage, often through a mobile app or a device in your car. If you drive less than 8,000 miles a year or follow safe driving practices like avoiding hard braking and speeding, you can save 10% to 40% on your premium.

Programs like Progressive’s Snapshot and Allstate’s Drivewise give discounts to low-mileage and safe drivers. These options are ideal for those who work from home, commute less or drive occasionally.

Certain states provide assistance programs for drivers who can’t afford car insurance, including:

• California’s Low-Cost Automobile Insurance Program (CLCA): Provides a policy with 10/20/3 coverage limits
• New Jersey’s Special Automobile Insurance Policy (SAIP): A dollar-a-day program providing medical coverage to low-income drivers
• Hawaii’s Aid to the Aged, Blind and Disabled Program (AABD): Gives free auto insurance to seniors and individuals who meet the Social Security Administration’s criteria for disability or blindness

Driving less can help lower your insurance costs. You might also save by sharing a vehicle with a family member and being added as an occasional driver on their policy, which is often cheaper than having your own.

Finding affordable car insurance can be simple. This guide provides practical tips to compare options, understand coverage and choose a policy that fits your budget while maintaining essential protection.

If car insurance is too expensive or hard to find, minimum coverage is the lowest coverage level to consider. The required coverage amount varies by state, so check your state's laws.

While minimum coverage is usually cheaper, it may not provide the protection you need. These policies don’t include comprehensive or collision insurance, which cover damage to your vehicle, yourself and passengers in an accident.

Check the table below for the cheapest provider and rates in your state.

If you don’t drive often, pay-per-mile or behavior-based car insurance may be more affordable than traditional policies. However, to save with pay-per-mile insurers like Metromile, you must drive less than 26 miles per week.

Here are other types of pay-per-mile insurance:

One of the best ways to reduce car insurance premiums is to maintain a good driving record and credit score. These factors heavily impact your insurance costs.

However, improving them may take time. It can take years for a traffic violation or ticket to be removed from your record. You can gradually boost your credit score by paying off past balances and catching up on overdue accounts.

Car insurance premiums depend on factors like age, location and coverage levels. This article shares strategies to make insurance more affordable, including comparing quotes, seeking discounts and considering pay-per-mile policies. By exploring these options, you can find a policy that fits your budget and provides the coverage you need.

Struggling to afford car insurance can be tough, but there are strategies to manage costs. We answer common questions about lowering premiums, exploring discounts and understanding alternative coverage options.

Study Overview

Car insurance can be costly, but it's necessary for drivers. MoneyGeek analyzed data from various financial services companies and government agencies to provide consumers with insights on how to buy affordable auto insurance.

Data Sources and Depth

MoneyGeek gathered 83,056 quotes from 46 companies across 473 ZIP codes to identify the best and cheapest auto insurance providers. The data was sourced from state insurance departments and Quadrant Information Services.

Driver Profile

To determine the average annual cost of auto insurance for budget-conscious drivers, MoneyGeek used the following sample driver profile:

• 40-year-old male
• Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

We adjusted this profile based on location and coverage type to reflect costs for drivers across the country.

Coverage Levels and Deductibles Explained

Each state has its minimum car insurance requirements. Coverage levels and deductibles are key factors that impact the cost of auto insurance.

• Coverage level: The amount covered by the policyholder's insurance
• Deductible: The amount the policyholder pays out of pocket before insurance covers a claim

A full car insurance policy with comprehensive and collision coverage (100/300/100) offers the most protection for most drivers. Alternatively, drivers can choose liability-only auto insurance (50/100/50).

100/300/100 comprehensive and collision coverage includes:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability

For our sample driver, we used 100/300/100 coverage with a $1,000 deductible when calculating the nationwide average.

Liability-only 50/100/50 breakdown coverage includes:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability

For state-specific data, we used 50/100/50 coverage with a $1,000 deductible for our sample driver.

Learn more about MoneyGeek's methodology.