Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 25, 2020

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Here's what you need to know...

  • Those drivers that have a good driving record and good credit scores can make a huge dent in the cost of their car insurance
  • When a driver has accidents and a bad credit score their rates reflect this
  • Minimum state car insurance varies by state, so check what your specific requires

Those that are in the low-income bracket of society can find insurance quotes for the coverage that is required by law. Comparing rates and accessibility online can easily do this.

This allows anyone the ability to get the insurance that is required for his or her state. There are different types of insurance for low-income people.

Find affordable car insurance now! Enter your zip code above to get started for FREE!

Table of Contents

Low-Risk Insurance

Those drivers that have a good driving record and good credit scores can make a huge dent in the cost of their car insurance.

While this is just starting in the state of California, many project that it will become available to anyone in the United States soon. All of those factors equal a very low rate for their car insurance.

Low-risk insurance is assessed by the following factors:

  • Does the driver have a clean driving record?
  • Has the driver maintained a good credit score?
  • Is the area of the driver considered a low-risk area?
  • Is the car a low-risk vehicle?

All of these factors combine to make for a good rate for those drivers that are categorized as low risk. However, this is rare.

Given the clean record and credit score, even a good driver can get a higher rate because of no fault of their own.

When this happens the driver needs a good agent or site to help them make their decision for their low-income insurance.

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High-Risk Insurance

When a driver has accidents and a bad credit score their rates reflect this. The rates are very high for these people.

Still, with the right help of an agent that can assess your individual needs, even these individuals can get reasonable rates.

High-risk drivers are assessed in the following manner:

  • Does the driver have a poor driving record?
  • Does the driver have poor credit rates?
  • Is the area that the driver resides considered a risk?
  • Is the vehicle that the driver insures a more expensive or risky vehicle?

Sometimes on top of all of the dings against the rates, there is also the fact of the vehicle choice to consider.

That means that the driver has to choose their car carefully.

It is always best to check the rates for any car that a driver is considering.

Things to Remember

Minimum state car insurance varies by state. That is why it is so important to check your individual needs.

The various policies and laws in each state can really make a difference for those who seek low-income car insurance.

Here are some points to remember:

  • Remember that each person has his or her own rates.
  • These rates are determined by driving records, credit scores, car choices and the location of the driver.
  • Always compare rates for before making any policy choice.
  • This can be done easily on sites that compare rates and insurance companies.
  • Some states, like California, offer low-income insurance if the driver qualifies.

How can a driver in California qualify for low-income car insurance?

If a driver resides in the state of California then they might be eligible for low-income car insurance. There are some factors to consider first prior to application.

Those the factors include the following:

  • The driver must be over the age of nineteen.
  • The driver must be an American citizen.
  • The driver must have no more than $27,000 a year in income if single.
  • If the driver is married, then they must make no more than $45,000 a year.
  • The application must be made prior to being accepted into the program.
  • Renewal is required along with certified proof of various requirements.
  • Only certain cars apply.

Once this is done, the driver can potentially qualify for low-income car insurance. It is worth considering if any of those aspects apply to the driver.

It is the ultimate low-income car insurance. This allows protection for each person to have the coverage that is legally required.

While some states have ignored this need, other states are considering low-income car insurance for their state.

It only covers the state requires liability requirements. The assumption is that a suit will only happen if the driver has a higher income.

at means that only the basic coverage is truly needed for any driver that fits the category. Low-income car insurance is easy to find if sites that compare rates are used. Once the policy is found, the savings can begin.

Save the most money possible with our car insurance quote tool. Enter your zip code below to get started for FREE!

References:

  1. https://en.wikipedia.org/wiki/California
  2. https://www.thebalance.com/how-to-get-your-driving-record-527249
  3. https://www.consumerreports.org/cro/car-insurance/buying-guide/index.htm
  4. https://www.directgeneral.com/learning-center/purchasing-a-car-and-insurance/low-income
  5. https://en.wikipedia.org/wiki/Citizenship_of_the_United_States