If you don’t live in a state with low-income car insurance programs, there are still a few ways you can save on your auto insurance policy.
As you can see in the tables above, car insurance rates vary widely depending on the provider. To find the best low-income car insurance, be prepared to compare rates from five or more companies. Shop online but also use independent insurance agents and brokers to find every opportunity for cheap coverage.
Keep a Clean Driving Record
You don’t want to sabotage yourself if you need low-income car insurance. Accidents and tickets on your driving history can raise your insurance rates no matter your income level. By keeping a clean driving record, you’ll find the best rates and also qualify for safe driver discounts.
Consider Usage-based Insurance
Usage-based programs, also called telematics insurancetrack your driving habits and award car insurance discounts based on safe driving. Progressive’s Snapshot®State Farm’s Drive Safe & Save™ and Allstate’s Drivewise® are examples of these kinds of programs. You can also try mileage-based programs like Metromile or Nationwide’s SmartMiles® if you don’t drive very often.
Cover Small Claims Yourself
According to our estimates, a single accident can raise full-coverage insurance rates by about $873 on average. The amount of time an accident stays on your insurance record depends on the state you live in and your provider. If the limit in your area is three years, you’d pay an extra $2,619 on average for one accident. If you get into a minor fender bender, consider covering the cost yourself to avoid an increase in rates.
Raise Your Deductible
You can change your car insurance premium by changing your deductible amount. Your car insurance policy will cost less if you raise your deductible because you take on more of the financial risk. But be sure you could afford to pay the deductible if an accident were to happen.
Reduce Your Coverage
You can also reduce your insurance coverage to save money if you’re comfortable with that. If you own your car outright, you can drop it comprehensive and collision coverage. However, you’ll need to be able to afford to fix or replace your car if you get into an accident. We recommend dropping these coverages if your car is worth $5,000 or less.
Choose a Car That’s Cheaper To Insure
If you’re in the market for a new or used car, try to choose one that’s cheap to insure. Generally, smaller used vehicles with safety features are the cheapest to insure. They might not be the most thrilling rides, but they’ll help you save money.