Is there Car Insurance for Low Income Families, Individuals and Seniors
What is low-income car insurance?
Is there Car insurance for low income families? is one of the necessary evils of this world. It’s not particularly exciting to discuss, it’s expensive, and you have to have it. And yet, our information shows that people who earn between $10,000 and $19,000 per year pay nearly as much as those who earn more than $200,000 per year. Along these lines, based on its necessity and the expense, it’s not hard to understand why people are looking for affordable car insurance on a low income. This is where it gets tricky.
Policies built specifically for low income families are a bit of a hazy area for insurance companies because your income isn’t technically a factor for your rate. However, insurers do use your credit score, education level, homeowner status, insurance history, and zip code (in addition to other things) to determine your insurance rate — all of which can correlate with your income level. Let’s take a gander at each of these rate factors a little further.
Government Car Insurance Programs for Low Income Families
Because household income isn’t directly used to determine month to month rates, most companies don’t create special projects for low-income families. Still, there are a few state-operated projects and companies that are specifically designed to help.
Car Insurance for Low Income Families in California
California has a program called California’s Low Cost Car Insurance Program, or CLCA, and is designed to provide low-cost insurance rates for eligible drivers.
What are the requirements?
Combined Household Income, based on the number of people:
1 = $30,150
2 = $40,600
3 = $51,050
4 = $60,500
A good driving record
No at-fault accidents in the previous three years
Must be in any event 19 years old
Must possess a valid driver’s license
Must claim a vehicle that is valued less than $25,000
And, normally, a California resident
If you meet the above qualifications and decide to pick to participate in CLCA, your insurance limits for bodily injury liability and property damage liability would really be lower than the state limits. As participants in this program are exempt from state requirements, your limits would be $10,000 for bodily injury or death per person, $20,000 total for bodily injury or death, and $3,000 total for property damage. The measure of the premium ranges based on your insurance history, your region, and your age. Compare Car Insurance with No Down Payment.
Auto Insurance For Low Income Families in New Jersey
New Jersey’s plan, Special Automobile Insurance Policy (SAIP), provides just the medical coverage portion of your auto insurance after a car accident. Eligibility is dependent upon you already being qualified for Federal Medicaid with Hospitalization, which an insurance agent can determine from your Medicaid ID card.
How much does SAIP cost and what are the requirements to join?
SAIP costs $365 per year. This coverage is additionally contingent upon yearly renewal of your Medicaid benefits. For example, if your Medicaid benefits were to lapse mid-year, your SAIP benefits would continue until the next renewal.
What does SAIP cover?
This coverage pays for emergency medical treatment immediately following an accident, including the treatment of serious brain and spinal injuries up at $250,000. In the event of death, a $10,000 benefit is available.
What doesn’t SAIP cover?
As stated, this policy is for medical coverage just — so things like comprehensive or collision coverage aren’t provided.
Is There Car Insurance for Low Income Families in Hawaii?
Hawaii provides a little more coverage for some of its residents through their state’s Aid to Aged, Blind, and Disabled program (AABD). This program, which provides free auto insurance for those who qualify, has a few requirements:
You are blind
You have suffered from a physical or mental disability for in any event a year which causes you to be unable to work
You live with and take care of someone who receives AABD benefits
You have a terminal condition that prevents you from working
Your Social Security or Supplemental Security Income doesn’t provide you with enough money
How to get coverage under AABD:
Because this is a government program, you would need to speak with the Hawaiian Department of Human Services in order to receive any benefits from AABD.
Other opportunities for low-income drivers to Save on Insurance
Even if you can’t get inexpensive insurance from your state government, there are many ways for low-income drivers to reduce car insurance costs. Some of these options are straightforward, and others require careful consideration. Compare Car Insurance with No Deposit.
The simplest and most effective approach to save is to look for the cheapest rates.
Different car insurance companies can offer remarkably different prices for the same driver, so if you haven’t collected multiple quotes, you might be missing out on the lowest price.
It can likewise be justified, despite all the trouble to check back periodically to see if competing insurers will offer you better rates, even if you got the best deal when you purchased your insurance. Companies constantly change how they calculate their rates, so you might be eligible for new savings that didn’t have any significant bearing before.
Claim a car that is inexpensive to insure
Generally speaking, the cheapest cars to insure are older, smaller and equipped with more safety features. For example, a 10-year-old station wagon will typically have lower rates than a brand-new SUV. So if you’re in the market for a new car, consider buying one that meets whatever number of these characteristics as would be prudent.
Reduce the number of cars you claim
Auto insurance rates are halfway determined on a per-vehicle basis, so you’ll pay more per month if you possess multiple vehicles. If it’s feasible to make do with fewer cars, selling one of them can cut your rate too. You’ll additionally limit the other costs associated with owning a car, like fuel and maintenance.
Reduce your coverage
You can reduce your month to month rates by decreasing the level of optional coverages you have or by increasing the deductibles on your policy. One normal choice for owners of older vehicles is to follow the 10 percent rule.
Consider removing collision and comprehensive coverage on your car if the annual cost of those coverages exceeds 10% of the payout you would receive if your car is totaled.
For example, if your car is worth $2,000 and you have a $500 deductible, the most your insurance company will pay if your car is totaled is $1,500. In this scenario, you might want to cancel comprehensive and collision coverage if this piece of your insurance exceeds $150 annually.
However, you shouldn’t lower your coverage past what you can afford to pay out of pocket. For example, if you can just spare $500 to fix your car, it’s a bad idea to raise your deductible to $1000, as you wouldn’t have enough money to pay the repair bill and get back out and about.
Basic Car Insurance Discounts for Low Income Families
Most car insurers likewise offer extra discounts to promote safety and responsibility behind the wheel. Each insurer offers different discounts, however many are similar. Get some information about the discounts it offers. Get Car Insurance Military Discounts.
One of the most typical, and often most substantial, discounts are simply for being a safe driver. Insurers will often provide you with a discount for going multiple years without an at-fault accident or traffic ticket.
Car insurers that allow you to use telematics, which track your driving habits using a smartphone application or a device that plugs into your car, offer the biggest discounts for safe drivers.
Another frequently available discount provides savings for purchasing additional policies from the same insurance company, for example, home or life insurance.
Other regular discounts to get some information about:
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