Minimum auto insurance requirements vary by state, but most states require some level of coverage. You might have difficulty finding affordable car insurance if you’re on a fixed income or in a lower-income tax bracket. Learn more about state-sponsored car insurance programs in California, Hawaii and New Jersey.
- Residents of California, Hawaii and New Jersey have access to state-sponsored low-income car insurance programs.
- Michigan, Pennsylvania and New Jersey residents can get insurance from the non-profit organization CURE that can help low-income residents.
- Low-cost insurers and discounts are the best options for those in other states.
What is low-income car insurance?
Low-income car insurance is exactly what it sounds like—car insurance for low-income people or families. Low-cost insurance can be obtained through government-sponsored low-income car insurance programs or by implementing strategies to help reduce car insurance costs.
Whether your state offers low-income auto insurance programs or you need to lower your insurance cost on a standard auto insurance policy, we’ve got you covered.
Which states offer low-income car insurance?
Currently, three states in the U.S. offer government car insurance for low-income residents—California, Hawaii and New Jersey. These states have implemented these programs for low-income individuals and families to make car insurance a more affordable necessity.
How do low-income auto insurance programs work?
Government-sponsored low-income car insurance programs vary by state in terms of eligibility requirements and what coverage they provide.
California’s low-income car insurance program
California’s Low Cost Auto Insurance Program (CLCA) is a government-sponsored program created in 1999 to offer affordable liability-only protection to low-income drivers who meet specific eligibility requirements. The program aims to make the state’s minimum liability requirements affordable for everyone and reduce the number of uninsured drivers on California roads.
Hawaii’s low-income car insurance program
Though part of Hawaii’s Assistance to the Aged, Blind and Disabled (AABD) program is intended to help provide low-income car insurance, it targets income-eligible seniors 65 or older who meet the Social Security Administration’s definition of disabled or blind.
State-mandated no-fault liability insurance may be provided for individuals who meet these requirements: The driver is receiving public assistance; the driver possesses a valid driver’s license (or doesn’t drive due to disability); and the person is the sole registered owner of the vehicle.
New Jersey’s low-income car insurance program
New Jersey offers the Special Automobile Insurance Policy (SAIP) to drivers eligible for Federal Medicaid with hospitalization. This program only covers emergency medical treatments for qualified injured drivers. The applicant must show proof of enrollment in Medicaid when the policy is underwritten and at every renewal.
It covers emergency treatment immediately following an accident and treatment of serious brain and spinal cord injuries up to $250,000. It also provides a $10,000 death benefit. The policy costs $365 per year in two installments or $360 if paid upfront.
CURE Program (Citizens United Reciprocal Exchange)
The nonprofit Citizens United Reciprocal Exchange (CURE) is available to Michigan, Pennsylvania and New Jersey residents. This program provides insurance to those who may struggle to find affordable car insurance for low-income individuals.
CURE prices policies based upon your driving record rather than factors such as education, occupation and credit scores that standard insurers use as rating factors. CURE was founded in the 1980s and bills itself as the “solution for transforming the car insurance industry and removing income discriminating practices.”
Low-income auto insurance for seniors
If you are a senior, you may wonder if Medicaid covers car insurance. Medicaid does not pay for auto insurance — although it may assist with medical costs related to an accident. This coverage will not pay for injuries to passengers or property damage.
However, if you are on Medicaid, some states offer programs or opt-out options for personal injury protection. These options are state-specific. Research your state to determine if you qualify for Medicaid-related low-income car insurance benefits.
Even if you are not on Medicaid, special discounts for seniors may be available, like a discount upon completing an approved defensive driving course.
Cheapest minimum coverage car insurance
Most states do not have state-sponsored low-income car insurance programs, yet there are low-income people nationwide. State minimum coverage is the minimum amount required by your state.
Remember that these policies only cover the bare minimum, including bodily injury and property damage liability up to the lowest limits your state requires. These policies won’t cover your car, but this low-income auto insurance will meet the legal requirements.
| Company | Annual rate for state minimum |
|---|---|
| Geico | $405 |
| State Farm | $497 |
| Allstate | $700 |
| USAA | $335 |
| Progressive | $549 |
| Farmers | $701 |
| Nationwide | $532 |
| Travelers | $506 |
| Auto-Owners | $337 |
Note: USAA is among the top 10 cheapest companies but only available to military members, veterans and their immediate families.
Cheapest full coverage car insurance companies
See the cheapest options in the table below if your vehicle lienholder requires full coverage car insurance.
| Company | Annual full coverage rate |
|---|---|
| Geico | $1,763 |
| State Farm | $1,975 |
| Allstate | $2,509 |
| USAA | $1,381 |
| Progressive | $1,998 |
| Farmers | $2,387 |
| Nationwide | $1,548 |
| Travelers | $1,587 |
| Auto-Owners | $1,553 |
Note: USAA is among the top 10 cheapest companies but only available to military members, veterans and their immediate families.
Final thoughts on low-income car insurance
Don’t be discouraged if you are on a constrained budget and struggling to pay your auto insurance. There are many ways to ease that burden and reduce your rates, whether you live in a state that offers low-income car insurance.
Resources & Methodology
Sources
Hawaii Department of Human Services. “Chapter 654. Hawaii No-Fault Insurance.” Accessed April 2024.
Methodology
CarInsurance.com commissioned Quadrant Information Services to pull rates in 2024 for a 40-year-old male driver with a good driving record. The hypothetical driver has a Honda Accord LX and a full coverage policy with liability limits of 100/300/100 and $500 comprehensive and collision deductibles. The data is from 74 companies in 34,588 ZIP codes.
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