Only 3 States Offer Car Insurance Options for Low-Income Families

Only California, Hawaii, and New Jersey offer car insurance options for people with lower incomes. If you don’t live in these states, or aren’t eligible for the programs, you can look for discounts with traditional insurance companies.
Written by Kiana Justice
Reviewed by Kathleen Flear
Sep 20, 2021
The pandemic has negatively impacted the lives of many families and individuals. Not everyone could afford the costs of
car insurance
, and it’s been even more difficult to pay the bills among job losses caused by the pandemic.
Given the limited options for low-cost coverage, some drivers might be tempted to go
without insurance
. There are high risks to driving without
coverage
, and hopefully more options will emerge for drivers with lower incomes to get insurance. According to
NextAdvisor
, only three states currently offer alternative policy options for consumers and drivers in need.
Car insurance is not affordable everyone | Twenty20

California

The
California
Low-Cost Auto Insurance Program (CLCA) comes with a few requirements to qualify. You must be at least 16, have a valid driver’s license, and the vehicle must be worth $25,000 or less.
If you live on your own, you can’t earn more than $32,200 a year. In a two-person household, your combined income can’t be over $43,550. The program is only able to cover basic
liability auto insurance
.
Collision
and
comprehensive coverage
is not included.
There’s a minimum amount of coverage required for every state, and this program will protect you from the penalties of driving without insurance. The CLCA is one of the policies available through the California Automobile Assigned Risk Plan, where low-income drivers can go for help getting insurance .

New Jersey

New Jersey’s
Special Automobile Insurance Policy (SAIP) costs $365 a year. The policy is available to individuals who are enrolled in federal Medicaid with hospitalization. You can check with an insurance agent to see if you’re eligible based on the number on your Medicaid ID.
This policy doesn't include collision, liability, or comprehensive coverage. The insurance plan covers up to $250,000 for emergency treatment immediately after an accident, and a $10,000 death benefit. Only one car is allowed per policy.

Hawaii

In
Hawaii
, the Assistance to the Aged, Blind, and Disabled (AABD) program provides cash benefits that can go towards
affordable car insurance
options. This program is aimed at helping residents who are 65 or older, or are disabled or blind. To be eligible, you must also fall below 34% of the 2006 federal poverty line.
These programs are not the most helpful compared to traditional car insurance. Nestor Hugo Solari, CEO of Sigo, hopes to help provide insurance to immigrants and Latinx customers. Solari said that these programs for people with low income are "a last resort for insureds who cannot find anyone to cover them."

Save money on car insurance from traditional companies

You might be able to find discounts with traditional car insurance companies. If you aren’t eligible for the low-income programs, or you want to find affordable insurance from more commonly used insurance companies,
Jerry
can help.
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National General
Allstate
AAA
Aig
Chubb
ClearCover
CSE
Dairyland
DirectAuto
Elephant Auto Insurance
Kemper
Libertymutual
Gainsco
Mapfre
Mercury Auto
Metromile
Nationwide
Plymouth Rock
Progressive
State Auto
Safeco
Travelers
Metlife
Bristol West

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