Affordable Auto Insurance: Options for Low Income Families

Unfortunately, many drivers throughout the country remain uninsured because they simply cannot afford it, which puts them, as well as other drivers, at risk. There are no federal government programs that I am aware of, but some states have implemented low cost auto insurance programs, so check with yours to be sure.  You can contact your state’s Department of Insurance for that information.  California, for example, has set up the California Low Cost Automobile Insurance Program (CLA), which helps low income families save a great deal of money each year on insurance.  In order to be eligible for the program, one must meet the following requirements:

• Low income has to be equal or less than $25,525 for one person, $34,225 for two, $51,625 for four and $51,625 for eight persons.
• One must meet the "good driver" category, which means no more than one at-fault accident and without more than one violation point within three years.
• There is also an age requirement of at least 19 and drivers must be continuously licensed for at least three years.

Other limitations may apply.

Beyond government programs, there are numerous discounts available from insurance companies, and they don’t often tell you about them--you have to ask.  Inquire about what discounts are offered and what the savings would be.  Such reductions can save you a substantial amount of money when grouped together.  Examples of discounts are: good driver, good student, multiple vehicles, multiple policies, low vehicle mileage, safety features (like air bags), anti-theft devices (like a steering wheel lock or a car alarm), mature driver, defensive driver (you have to complete a class), trade association discounts, etc.

You might also consider increasing your deductibles and reducing your coverage to the minimum state required limits if it’s necessary in order to keep your insurance. Additionally, you can shop around online for the best rates.  There are definitely differences between companies in what they charge for the same coverage, so take your time and check carefully.  Chances are, you can do better than what you’re paying now.