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Does a poor person (income under $400 per month) need liability car insurance in Washington State?

Yes, if a low income person owns a car in Washington State than they are required to have the minimum Liability limits for car insurance on that vehicle.

Washington law requires anyone driving a motor vehicle in their state to have an auto insurance Liability policy, a certificate of deposit, or a liability bond to the required limits. If you have 26 or more vehicles, you can self-insure.

Under WA law, you are required to have a Liability policy with limits of at least 25/50/10. This means:

  • $25,000 for injury to another person
  • $50,000 for injuries to all other persons
  • $10,000 for damage to another’s property

You must carry the same limits if you choose to buy a bond instead of an insurance policy. If you use a certificate of deposit, you must deposit $60,000 in cash or securities with the Office of the State Treasurer.

There are exceptions to the WA mandatory car insurance law this includes: 

  • Specially licensed “antique vehicles” over 40 years old
  • “Collector’s vehicles” over 30 years old
  • Publicly-owned vehicles (vehicles owned, rented or leased by state, federal, city, county, and town governments, school districts and political subdivisions)
  • Vehicles registered with the Washington Utilities and Transportation Commission as common or contract carriers (any truck that hauls for payment)
  • Motorcycles
  • Motor-driven cycles, such as motor scooters
  • Mopeds

Regardless of this exemption, all drivers are subject to the state’s Financial Responsibility Law. This law requires the person who is responsible for the damage or injury to pay the loss.

While California has in place their their Low Cost Automobile Insurance Program whose purpose is to provide low-income good drivers with access to affordable liability insurance, Washington does not have such a program in place.

If you are considered low income it is best to shop around and find the basic car insurance policy that you can afford instead of risking driving without insurance and causing an accident in which you would be held personally responsible for.

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Question Details
This car insurance answer was last updated 4:50 PM Nov-10.
This buying a policy question was asked 6:04 PM Nov-04-2009.
D H requested this car insurance help from CarInsurance.com experts.
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