Key information about low-income car insurance

I am sure that you have been in an awkward situation to decide between paying for rent and insurance. I want to let you know that there are a lot of people that have found themselves in this situation as well. The majority of drivers in the United States probably forgo their insurance coverage to make payment for other bills. You are aware that it is illegal to drive a vehicle in every state. Statistics have shown that the cost of insurance and living has been continually been on the rise (10-12 percent annual rate). For the federal minimum wage, this hasn’t been the case. The good news is that low-income families can purchase low-income car insurance from traditional insurance firms and certain state government schemes.

What is low-income car insurance?

As the name implies, low-income car insurance is simply car insurance for low-income individuals. Some individuals may find it difficult to secure funds for car insurance and this is their only shot at getting their car insured. Fortunately, several states have designed programs to assist low-income families to afford low-income auto insurance.

How much regular car insurance costs for low-income drivers

Getting car insurance for low-income earners has become an expensive necessity. but the fact is that car insurance is required in the majority of the states. This costs them hundreds of dollars every month. However, there are just a few states in the USA – New Jersey, Hawaii, and California that provide special car insurance for low-income individuals. However, if you are unable to access the car insurance policy for low-income drivers sponsored by the state, you will have to purchase a standard policy from an insurer.

These car insurance firms don’t consider your income when estimating your rates. The factors that affect the amount of money you will pay for auto insurance is; your coverage levels, driving history, location, and age. For instance, if two drivers don’t earn the same income but the remaining factors are constant, this won’t affect the car insurance rate. The prices of car insurance are not the same in all states. Check the table below to find out the average monthly insurance prices in all states of the USA.

Another factor to note in the car insurance pricing is a credit score. An excellent credit score can result in lower car insurance costs for drivers and vice versa. If you are a low-income earner and have failed to repay your debt, this could indirectly increase the insurance costs. Endeavor to follow our guidelines below if you belong to the categories of low-income drivers who are remitting more per month for the auto insurance compared to the price rate of your state. Also, if you are a low-income driver who can’t secure state-sponsored car insurance, this is for you too.

In some situations, it is nearly impossible to get a cheaper car average due to your age, location, driving history, etc. However, if you want to save on your car insurance, there are several steps you can take to make your savings.

Discounts available to low-income drivers

The majority of insurance companies provide multiple auto insurance discounts irrespective of their income level. For example, families residing in the same place and using the same car can pay together. If you have multiple vehicles coupled with drivers registered on the same car insurance policy unlocks multi-driver and multi-car discounts. Also, you can have the cost reduced if a driver registered on your policy has a good CGPA.

We have listed some other significant discounts that you may benefit from:

• Good driver discount: This is applicable for individuals that haven’t been involved in any traffic violations or car accidents for the past three years. The majority of auto insurance firms will offer a good driver discount. Note that there are a few providers that require that you have at least 5 years of perfect driving to enjoy this benefit.
• Defensive driving discount: If you pass a certified defensive driving course, you can get to benefit from a reduced rate. But, note that you have to sit for the same test every one or two years to keep this benefit.
• Driver training discount: If you are a driver that is under 21 years of age and you have taken a professional driver training course, you may benefit from this. It is normal for the car insurance rates for the under-25 drivers to be on the high side. Therefore, you qualify for this discount as long as you have passed the certified driver training course.
• Reduced mileage discount: This is applicable for drivers that cover less than 10,000 miles per year. There is a high chance that you will get a discounted rate on your insurance. However, note that some insurance companies expect you to authenticate your low mileage by having you set up a mileage tracker into your car.

For vehicle-based discounts, they include;

• Multi-vehicle discount: If you insure more than one vehicle and list them on a single policy, this may trigger the discount.
• Safety features discount: The installation of certain car safety features can enable you to get a better rate. For instance, antilock brakes, daytime running lights, and airbags are all exciting features that are desirable to insurance providers.
• Anti-theft device discounts: The installation of theft prevention devices such as passive disabling and alarms systems can make you enjoy a small discount. The fact is that the discount is not significant that makes it mandatory to install such systems. But if you have already installed these systems or you want to get them just for security purposes, you might also claim the discount.

Even if these are not required where you reside, endeavor to complete a defensive driving course or a driver’s education. This shows that you take your security and safety seriously and companies will reward this responsible act with a discount.

Getting cheap car insurance from insurance firms

Car insurance firms consider several factors and weigh them using different criteria when setting the rate for a specific policy. This is the reason why car insurance quotes are not the same for all companies. Comparing rates and shopping around is vital if you want to get an affordable deal. You must also see if you qualify for any deals and discounts, as the majority of insurers provide several different types. According to the data sourced from the state’s department of insurance, the average annual auto insurance premiums are highlighted below:

Always keep in mind that these are the estimated average numbers. Your circumstances and unique driving history will affect the rates of your car insurance. Therefore, it is advisable to get quotes from a variety of insurance firms to make an informed decision.

Mycityautoinsurance.com has made this process easy and allows you to compare the quotes of the car insurance regardless of your income level, location, or driving record.

We have a sample auto insurance quote list from a low-level income earner who did his research and came up with this list. This profile fits a 40-year-old female residing in Fresno, CA; she owns and drives a 1999 Ford Windstar, under the employ of a company but has poor credit. Also, she maintained a clean driving record and eligible for state minimum protection.

Avoid the expiration of your insurance

If you find it difficult to make ends meet, you may be tempted to temporarily cancel coverage or let your insurance lapse. You must not consider this. The reasons are explained further. First, if you are caught driving without insurance, consider yourself in deep soup. There is a high chance that you will cough out hundreds of dollars and your license will be seized and invalidated. You have to be aware that the majority of insurance firms don’t give coverage to drivers that have violated the law and you have to pay high insurance rates. Additionally, if you get involved in an accident, you will be liable for any damage you caused. Now, this is interesting; even if you are not the cause of the accident, several state laws will prevent you from benefiting from the liability coverage of the other driver. This is applicable for those without their car insurance.

There is a high chance that when you reactive your insurance policy, it will result in a high rate for several months. The way around this is to minimize the coverage level on cars you won’t be using – just remember to reactivate your policy before you get on the road.