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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Car insurance is legally required in most states, but it’s a major financial strain for many Americans. The in the United States is $563 per year for minimum coverage and $1,738 for full coverage. Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERT Rates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More Although the price of car insurance varies significantly by state, it is not cheap. Low-income individuals who can’t afford are more likely to forego insurance coverage altogether, which can land them in serious trouble. However, low-income individuals who struggle to pay for standard insurance have another option—enroll in a low-income auto insurance program. What is low-income car insurance
Low-income car insurance is a type of insurance that is available exclusively to low-income families. It allows people who can’t afford standard car insurance to get coverage that is less expensive. Ultimately, the goal of low-income car insurance is to reduce the number of uninsured drivers on the road. Low-income car insurance is offered at the state-level, but it’s not widely available. There are only a handful of states that offer this type of insurance. Each state has its own requirements for low-income car insurance, and not everyone is approved for coverage. Typically, you’re considered low-income if you make under a certain amount of money, and are enrolled in one or more government assistance programs. You also have to have a valid driver’s license in your state of residence, and have a clean driving record. Many states also have requirements for the value of your vehicle. Low-income car insurance is considered to be a last-resort option for drivers. You should only apply for low-income car insurance if you’re unable to find private insurance that you can afford. Although low-income car insurance is cheaper, it doesn’t offer as much coverage. Cheapest car insurance for low-income individuals
Several insurance companies offer affordable prices. Individuals with a low income may want to consider obtaining minimum coverage from one of the as shown in the table below. Minimum coverage is more affordable than full coverage and can be one way to save, although people considering this option may want to discuss if that will be enough coverage with an insurance agent. Car insurance company Average annual premium for minimum coverage USAA $351 Erie $360 Geico $363 Auto-Owners $364 Amica $368 Along with minimum coverage, you can add additional features to customize your coverage options. State-sponsored options for low-income families
Currently, only four states offer a low-income car insurance option—California, New Jersey, Maryland and Hawaii. Here are the eligibility requirements for the three plans. Low-income drivers in California can sign up for the (CLCA). To qualify, your annual income must fall within 250 percent of the federal poverty level. You must have a valid California driver’s license, your car must be worth less than $25,000 and you need to have a clean driving record. The CLCA program only offers liability and property damage coverage. Uninsured motorist and medical payments coverage is optional. New Jersey’s low-income car insurance program is called the (SAIP). Besides a valid New Jersey license, the only requirement is that drivers must be enrolled in federal medicaid with hospitalization. Unlike other plans, this one just covers emergency medical costs if you get into an accident. It doesn’t include coverage for liability or vehicle damages. Insurance from SAIP costs only $365 a year, which is significantly cheaper than private insurance. Low-income drivers in Hawaii can get affordable coverage through the (AABD). This program is only available to Hawaii residents who are 65 or older and meet the Social Security Administration’s legal definition of disabled or blind. Additionally, your income must fall below 34 percent of the 2006 federal poverty level, and you can’t be receiving aid that exceeds $2,000 for one person or $3,000 for a couple. Maryland
, also called Maryland Auto Insurance, sells vehicle liability insurance to drivers residing in Maryland who cannot obtain private liability coverage. The Fund acts similarly to any private insurance company and must follow regulations by the Maryland Insurance Commissioner. The fund also covers certain claims with uninsured motorists or in the event of a hit-and-run. Drivers must be rejected by a minimum of two private insurance companies, had vehicle insurance cancelled, or not renewed vehicle insurance for reasons excluding nonpayment in order to be eligible. To register a vehicle in Maryland, the owner of the vehicle must follow the minimum state requirements for coverage. Who should get low-income car insurance
Low-income car insurance can be a lifesaver for people who can’t afford private coverage. However, it is not the best option for everyone, and not everyone is eligible. Low-income car insurance is for those who cannot afford any type of private insurance, even with discounts. However, low-income car insurance coverage is limited. It is not the same insurance you would get through a private provider. Most state-sponsored insurance programs offer minimal coverage to keep the price low. For instance, California drivers in the CLCA program only get liability and property damage coverage. Low-income car insurance is a good option if you need coverage to avoid driving completely uninsured (which is illegal). It is generally not a good option for anyone who is looking for comprehensive coverage. Low-income car insurance often has significant gaps that could lead to out-of-pocket expenses if you have to file a claim. How income affects car insurance rates
Technically, your income does not impact your car insurance rate. Unlike a loan, insurance companies do not review your income to determine if you should get approved for coverage. Instead, insurance companies use other factors, like your credit score, claims history, age and ZIP code to calculate your premium. However, many of those factors relate to your income level. For example, if you have a low credit score, it could be because you have debts you cannot afford to pay because of your income. People with a low credit score pay more money for their car insurance because they are considered high-risk. Additionally, people with a low income might live in a neighborhood with a higher rate of crime. Individuals who live in ZIP codes with above-average rates of crime and theft tend to have higher insurance premiums. Frequently asked questions
Who has the cheapest car insurance
The vary by state. Additionally, every driver pays a different rate based on their zip code, age, credit score, claims history, the car they drive, and so on. Based on our own research, Geico, Nationwide and State Farm tend to offer consistently affordable premiums. What are ways to save on car insurance
There are a number of ways drivers can save money on car insurance. Take advantage of discounts, raise your credit score, increase your deductible, take a defensive driving course and shop around for quotes to make sure you’re paying the lowest rate. Methodology
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits: $100,000 bodily injury liability per person $300,000 bodily injury liability per accident $50,000 property damage liability per accident $100,000 uninsured motorist bodily injury per person $300,000 uninsured motorist bodily injury per accident $500 collision deductible $500 comprehensive deductible To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually. These are sample rates and should be used for comparative purposes only. Your quotes may be different. Rates are determined based on 2020 Quadrant Information Services data. SHARE: Elizabeth Rivelli is a contributing insurance writer for Bankrate and has years of experience writing for insurance domains such as The Simple Dollar, Coverage.com and NextAdvisor, among others Related Articles