+120 more)
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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
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Becky Helzer is an insurance and personal finance editor who has worked with Compare.com since 2025. A seasoned editor, Becky has experience working with content across several industries, including P&C insurance, home finance, technology, and home improvement. She has a passion for breaking down complex topics into clear, easy-to-understand copy.
Becky earned a bachelor’s degree in technical journalism from Colorado State University.
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Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.
Updated
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Income isn’t a direct rating factor for car insurance, but a tight budget can make it hard to afford coverage. Going without insurance isn’t an option if you need your car for work, school, or appointments.
Several states offer government-backed programs for qualifying drivers. Another option is comparing auto insurance prices from non-standard insurers that work with high-risk drivers.
This guide will help you find the cheapest car insurance rates, state programs you may qualify for, and practical ways to lower your premiums.
Liability-only insurance is the cheapest way to meet your state’s minimum coverage requirements, but it won’t pay to fix or replace your own car.
Many states offer government-sponsored programs that can significantly reduce car insurance costs for eligible low-income drivers.
Letting your policy lapse can increase your next premium, so keeping at least the state minimum can save you money long term.
The cheapest car insurance type is typically liability-only coverage. It covers injuries and damage you cause to others, but it doesn’t pay to repair your own vehicle.
If you finance or lease your car and need full coverage, the best car insurance companies may offer affordable coverage if you’re a safe driver.
The table below shows average monthly premiums for liability-only and full-coverage car insurance from the cheapest insurers.
Company  | Average Monthly Premium |
|---|---|
| Country Financial | $43 |
| Auto-Owners | $46 |
| USAA | $52 |
| State Farm | $54 |
| NJM | $55 |
| Erie | $71 |
| Allstate | $74 |
| Mile Auto | $75 |
| American Family | $81 |
| GEICO | $82 |
| Commonwealth Casualty | $82 |
| Safeco | $85 |
| Progressive | $89 |
| Mercury | $92 |
| Root | $92 |
| Nationwide | $95 |
| Travelers | $98 |
| Farmers | $108 |
| Elephant | $109 |
| Anchor | $113 |
| AssuranceAmerica | $118 |
| Chubb | $118 |
| Clearcover | $125 |
| Liberty Mutual | $132 |
| 21st Century | $132 |
| Shelter | $134 |
| Plymouth Rock | $138 |
| The Hartford | $142 |
| CSAA | $142 |
| State Auto | $152 |
| Amica | $252 |
Non-standard car insurance companies insure drivers who might not qualify for traditional coverage.[1] This includes people who have a poor driving record, credit issues, or let their insurance lapse. While non-standard companies may charge higher auto insurance rates, these companies may be your only option when other insurers turn you down.
The table below lists the average monthly prices from leading non-standard insurers. Keep in mind that some of these companies don’t offer coverage in every state.
Company | Average Monthly Premium |
|---|---|
| The General | $85 |
| National General | $89 |
| Direct Auto | $93 |
| Dairyland | $94 |
| GAINSCO | $99 |
| Bristol West | $105 |
Let us do the work getting quotes from 120+ companies. You sit back and save!
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A handful of states run programs that help low-income drivers pay for the minimum car insurance required. It’s cheap car insurance, but coverage limits are usually lower, and the policy doesn’t typically pay to repair your car’s damage.
As an example, the national average cost of car insurance for liability-only coverage is $98 per month. A state-sponsored program could help you save money each month if your state’s rates are higher than average.
California’s Low Cost Auto (CLCA) Insurance Program provides lower-cost liability-only coverage. It can help, given that the average monthly cost of liability car insurance in California is $93, according to Compare.com data.
To qualify, you must meet income requirements, have a valid California driver’s license, own a car worth $25,000 or less, and be either a new driver or have a good driving record.[2]
Coverage limits are significantly lower than the state requires for standard policies. Also, the CLCA program doesn’t offer full-coverage policies. That means you won’t qualify for coverage if you have a car loan or lease, as lenders typically require collision and comprehensive insurance.
New Jersey’s Special Automobile Insurance Policy (SAIP), often called “Dollar-a-Day” insurance, costs $365 per year. Only drivers who receive federal Medicaid with hospitalization benefits qualify for this coverage.[3]
SAIP doesn’t include liability coverage. It covers up to $250,000 for emergency medical care and provides a $10,000 death benefit, but it doesn’t pay for injuries or damage you cause to others.
The average monthly cost for liability-only coverage in New Jersey is $184, according to Compare.com data. That’s why drivers who qualify often consider SAIP despite the low coverage limits.
The Maryland Auto Insurance Fund (MAIF) is a last resort for drivers who can’t get coverage from private companies. If you have a valid license and own a car in Maryland, you can apply if at least two insurers have denied or canceled your coverage for reasons other than missed payments.[4]
MAIF offers state-minimum coverage and optional add-ons like full coverage, rental reimbursement, and towing. While rates aren’t cheaper, they’re often comparable to those of other Maryland insurers.
For context, the average monthly cost of liability car insurance in Maryland is $177, according to Compare.com data.
Car insurance in Hawaii averages $58 per month for liability insurance, according to Compare.com data. But some low-income drivers can get free or reduced-cost coverage through the Hawaii Joint Underwriting Plan (HJUP).
It includes liability and personal injury protection with limits that match Hawaii’s minimum requirements for standard insurance. You can also add optional coverages like collision or comprehensive.
Eligibility for the program is tied to receiving public assistance, such as Temporary Assistance for Needy Families (TANF) or Supplemental Security Income (SSI). You also must own a vehicle and have a valid driver’s license in Hawaii.[5]
Citizens United Reciprocal Exchange (CURE) is a private insurer, not a government program, selling car insurance in New Jersey, Pennsylvania, and Michigan. CURE doesn’t use credit history, education level, or job type when setting rates, which can result in cheaper premiums for good drivers with clean driving records.
That said, drivers should take a close look at CURE before signing up. The company has faced several recent lawsuits over policies canceled after accidents, and customer complaints rose 163% between 2022 and 2024, according to National Association of Insurance Commissioners (NAIC) data.[6]
Check reviews, and make sure you’re comfortable with how claims are handled before signing up.
Car insurance rates vary significantly by state because of differences in minimum coverage requirements, road conditions, and insurance laws. The cheapest company in one state may not be the cheapest in another.
The map below shows the most affordable insurer for low-income drivers in each state.
State | Cheapest Monthly Premium |
|---|---|
| Alabama | $46 |
| Alaska | $76 |
| Arizona | $64 |
| Arkansas | $42 |
| California | $81 |
| Colorado | $56 |
| Connecticut | $108 |
| Delaware | $75 |
| Florida | $99 |
| Georgia | $85 |
| Hawaii | $60 |
| Idaho | $32 |
| Illinois | $46 |
| Indiana | $43 |
| Iowa | $22 |
| Kansas | $51 |
| Kentucky | $80 |
| Louisiana | $63 |
| Maine | $38 |
| Maryland | $154 |
| Massachusetts | $54 |
| Michigan | $68 |
| Minnesota | $57 |
| Mississippi | $41 |
| Missouri | $54 |
| Montana | $33 |
| Nebraska | $41 |
| Nevada | $57 |
| New Hampshire | $50 |
| New Jersey | $112 |
| New Mexico | $56 |
| New York | $108 |
| North Carolina | $59 |
| North Dakota | $23 |
| Ohio | $42 |
| Oklahoma | $35 |
| Oregon | $69 |
| Pennsylvania | $40 |
| Rhode Island | $95 |
| South Carolina | $70 |
| South Dakota | $70 |
| Tennessee | $46 |
| Texas | $55 |
| Utah | $59 |
| Vermont | $17 |
| Virginia | $57 |
| Washington | $58 |
| Washington D.C. | $166 |
| West Virginia | $41 |
| Wisconsin | $32 |
| Wyoming | $24 |
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Even if you’re not eligible for a low-income car insurance program, you can take steps right now to trim your monthly premium. Bundling auto insurance with homeowners or renters insurance is a popular way to save, but it isn’t the only option.
The key is making changes that keep you at or above your state’s minimum insurance requirements.
If you aren’t financing or leasing your car, you can drop collision coverage and comprehensive coverage and keep only the state-required liability coverage. It’ll lower your insurance premiums, but the trade-off is that liability-only doesn’t cover your own vehicle. The cost of repairs from a car accident, theft, or weather damage comes out of your own pocket.
Companies like Hugo sell car insurance for just a few days at a time. This pay-as-you-go coverage lets you pay for coverage only when you need it. Another option is pay-per-mile insurance from a telematics company like Metromile (now part of Lemonade).
With this type of policy, you pay a low monthly base rate plus a per-mile fee, so you pay less when you drive less.
Your insurance rate isn’t only about you. It’s also about the type of car you drive. Some vehicles may be more or less expensive to insure because of their safety features and ratings, claim frequency, and how expensive they are to repair.
Basic sedans and smaller SUVs usually cost less to insure than luxury cars, sportier trims, or vehicles more prone to theft.
A higher deductible usually means a lower monthly premium. Moving from a $250 to a $1,000 deductible can make a real difference in what you pay.
While a higher deductible means lower premiums, it also means you’ll pay more out of pocket if you file a claim, so make sure you can afford it.
When money is tight, letting your policy lapse might seem like an easy way to give yourself some breathing room. But insurers treat lapses as a major red flag and bump up your rate considerably the next time you shop for auto insurance.
On top of that, driving uninsured can lead to tickets, fines, and legal issues.
Score the best car insurance rates for your credit
Many U.S. states allow insurers to use credit history as a factor when setting auto rates. This means drivers with poor credit might pay higher premiums than drivers with good credit, even for the same coverage.
A few states don’t allow credit scores in insurance at all, including California, Hawaii, Massachusetts, and Michigan.[7] Maryland, Oregon, and Utah limit how insurers can use credit data, and Missouri and Iowa are considering laws to ban it altogether.
For more information on low-income car insurance, see answer to the most common questions people ask below.
The best car insurance for a low-income driver depends on your state. Government-sponsored programs, like California’s CLCA or Hawaii’s assistance plan, offer the lowest rates to eligible drivers. For states without government-sponsored plans, get quotes from non-standard insurers.
Participation in the Supplemental Nutrition Assistance Program (SNAP) doesn’t automatically lower your rates. But in some states, it can demonstrate that you meet income eligibility requirements for affordable car insurance programs, such as California’s CLCA or Hawaii’s assistance plan.
Not exactly. EBT (electronic benefits transfer) cardholders don’t automatically get car insurance discounts. But receiving public assistance benefits can serve as proof of low-income eligibility for state-assisted car insurance programs.
No. You must always make a minimum payment for coverage to take effect. Some companies require just a small up-front payment. For example, Hugo lets you start coverage with an initial down payment rather than paying several months up front, and you can pay for as little as three days at a time.
Based on average national rates, Auto-Owners offers the cheapest full-coverage car insurance, with rates around $88 per month. Your actual rate will depend on your vehicle, ZIP code, age, driving record, and other factors.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Amy Beardsley is a seasoned insurance expert who’s been writing for Compare.com since 2023. She has more than 12 years of industry knowledge and expertise in auto, home, life, commercial, and other insurance products. Amy’s work has been published by Berkshire Hathaway Specialty Insurance, Legal & General, NerdWallet, Robinhood, Insurify, NEXT Insurance, and more.
Amy worked as a court administrator before becoming a content marketing writer. Her legal background has equipped her with the ability to simplify complex technical language into easy-to-understand content.
She graduated magna cum laude from Ferris State University, where she earned a Bachelor of Science in Business Administration and Legal Studies.
Becky Helzer is an insurance and personal finance editor who has worked with Compare.com since 2025. A seasoned editor, Becky has experience working with content across several industries, including P&C insurance, home finance, technology, and home improvement. She has a passion for breaking down complex topics into clear, easy-to-understand copy.
Becky earned a bachelor’s degree in technical journalism from Colorado State University.
Amanda Clear is a licensed Property and Casualty insurance agent who runs her family insurance agency providing coverage in the states of Connecticut, New York, and Vermont. She specializes in providing customized insurance packages to her clients that provide the best coverage for the price that they can afford. She holds a bachelor's degree in English from Sacred Heart University in Fairfield, CT, and works as a freelance editor, proofreader, and writer outside of her insurance career.