Government car insurance for low-income drivers
Only three states offer a government car insurance program for low-income drivers:
- California
- Hawaii
- New Jersey
Each state has specific eligibility requirements, some of which go beyond just income.
California government car insurance for low-income drivers
California’s Low-Cost Auto Insurance (CLCA) program is the state-sponsored California car insurance option for low-income drivers.
“California’s Low Cost Auto (CLCA) Insurance Program is a state-sponsored program that makes insurance affordable for California residents who meet the eligibility requirements, regardless of immigration status,” says Amy Nungaray, programs manager, Community Relations and Outreach Branch, California Department of Insurance.
Average annual premium: $190- $921
State minimum coverage requirements: 30/60/15
Coverage offered: State minimum liability, option to add $1,000 medical payments and $10,00 per person, $20,000 per incident uninsured motorist bodily injury
Eligibility:
- Hold a valid California driver’s license
- Meet the income eligibility guidelines based on your household size. For example, a family of four can have a maximum income of $78,000
- Own a vehicle with a value of $25,000 or less
- Be at least 16 years old and legally emancipated if you are under 18
- Have a clean driving record or be a newly licensed driver
How to apply:
- Complete the eligibility questionnaire
- Apply online (at the end of the questionnaire) or with a local agent
- Submit proof of income and vehicle ownership
- Pay your premium
“The program does not actually sell auto insurance through the California Department of Insurance, but assigns a licensed auto insurance company to provide you with a policy through the California Automobile Assigned Risk Plan,” Nungaray says.
Affordable car insurance companies for low-income drivers in California
If you don’t qualify for the low-income program in California, you can still find cheap car insurance by shopping around.
Nungaray also recommends checking out pay-per-mile programs.
“Some carriers now offer pay-as-you-drive policies, which can be much cheaper if someone drives infrequently,” she says.
Take a look at the cheapest companies for state minimum coverage in California below.
| Company | Average annual premium | Average monthly premium |
|---|---|---|
| GEICO | $455 | $38 |
| CSAA Insurance (AAA) | $486 | $41 |
| Progressive | $601 | $50 |
| State Farm | $626 | $52 |
| Kemper | $672 | $56 |
| Auto Club Enterprises (AAA) | $684 | $57 |
| Mercury Insurance | $753 | $63 |
| Farmers | $1,010 | $84 |
| Travelers | $1,035 | $86 |
| Nationwide | $1,118 | $93 |
| Allstate | $1,124 | $94 |
| USAA | $499 | $42 |
Hawaii government car insurance for low-income drivers
Hawaii offers low-income car insurance through the No-Fault Car Insurance Program, which is only available to a limited population. Insurance through this program is free and limited to one vehicle per household, except in specific circumstances.
Average annual premium: $425
State minimum coverage requirements: 20/40/10, $10,000 personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault.
Coverage offered: State minimum liability and personal injury protection
Eligibility:
- Have a valid driver's license, unless the individual is disabled, unable to operate a vehicle, and is the registered owner of the vehicle.
- Receive public assistance either as direct cash payments, through the Supplemental Security Income program under the Social Security Administration, or by receiving medical services through the Department of Human Services (received before July 1, 1994, and still receiving them).
How to apply:
- Obtain a certificate of eligibility from the Hawaii Department of Human Services
- Present or mail the certificate to a carrier that participates in the Hawaii Joint Underwriting Program (HJUP)
Affordable car insurance companies for low-income drivers in Hawaii
If you don’t qualify for Hawaii’s free car insurance program, you can still shop around to find a low rate on your car insurance.
| Company | Average annual premium | Average monthly premium |
|---|---|---|
| GEICO | $246 | $21 |
| Island Insurance | $415 | $35 |
| Progressive | $452 | $38 |
| Farmers | $471 | $39 |
| State Farm | $531 | $44 |
| Allstate | $600 | $50 |
| USAA | $257 | $21 |
New Jersey government car insurance for low-income drivers
New Jersey’s low-income car insurance program has limited eligibility and doesn’t provide state minimum coverage. Drivers who qualify are given an exception. The New Jersey Special Automobile Insurance Policy (SAIP) is often referred to as the dollar-a-day car insurance program.
Average annual premium: $365
State minimum coverage requirements: 25/50/25 (SAIP does not meet these requirements)
Coverage offered: Emergency treatment after an accident, serious brain and spinal cord injuries up to $250,000, and a $10,000 death benefit.
Eligibility:
- Have a valid driver’s license
- Be currently enrolled in Federal Medicaid with Hospitalization
How to apply:
- Find an agent who handles applications or call 1-800-652-2471
- Provide driver’s license, vehicle registration and proof of Medicaid enrollment
- Pay your premium
Affordable car insurance companies for low-income drivers in New Jersey
The SAIP program is only available to a specific population and doesn’t provide state minimum coverage, but there are options for finding a cheap state-minimum policy.
| Company | Average annual premium | Average monthly premium |
|---|---|---|
| GEICO | $774 | $65 |
| Selective Insurance | $801 | $67 |
| NJM | $830 | $69 |
| Plymouth Rock Assurance | $899 | $75 |
| Progressive | $1,055 | $88 |
| Allstate | $1,218 | $102 |
| Farmers | $1,228 | $102 |
| Travelers | $1,512 | $126 |
| State Farm | $1,823 | $152 |
| The Hanover | $1,985 | $165 |
Frequently asked questions
How does government car insurance work for low-income families?
If you qualify based on your state’s requirements, you will get the coverage outlined in the plan at a low-cost rate; in Hawaii, it is free. Note that in New Jersey, the SAIP program doesn’t provide state minimum coverage and is only for those on Medicaid.
How much can you save with a government car insurance program?
If you qualify, you could pay as little as nothing to a few hundred dollars a year on your car insurance. How much you will save depends on how much you were paying before.
Do unemployed people qualify for state auto insurance help?
No, there are no government programs for unemployed people to save on car insurance. However, in California, Hawaii, or New Jersey, you may qualify if you are unemployed and meet the other requirements.
Helpful auto insurance tools and calculators
