Car Insurance Rates for Low Income Families






When there’s barely enough money for groceries, it can feel like paying the car insurance bill is impossible. Too many low-income families wind up foregoing car insurance because the priorities dictate that the children need to be fed first. However, there are ways to get affordable insurance, no matter how tight the budget is.

Going Uninsured

Many people are faced with the miserable decision of having to skip car insurance. They drive without the insurance, taking care to avoid accidents and praying that they aren’t pulled over. While this is understandable, going without auto insurance leaves the family open to a lawsuit should there be an accident.

You may not have a home or other assets that can be taken, but your income is an asset. In the absence of an ability to pay for an accident, you could wind up having your wages garnished to pay for the damages. Don’t take chances on landing in this unfortunate position.

Solid Record, Top Companies

Auto insurance companies don’t look at your earnings. They glance at your credit report and pay close attention to your driving record. If you have a clean record, you can qualify for affordable insurance with national companies like Geico, State Farm, Allstate, Progressive and Liberty Mutual. Being low-income does not mean that you are an irresponsible driver, so you don’t have to pay the same rates that drivers with excessive tickets or accidents pay. According to the experts at JD Power, the companies with the most attractive pricing plans are the following:

– Ameriprise
– Amica Mutual
– Erie Insurance
– Shelter
– Geico
– Auto-Owners Insurance
– Automobile Club of Southern California

Higher Deductible

You only have to pay the deductible when your vehicle or property is damaged. The deductible does not come into play when your insurance is paying for damages to someone else’s property or their injuries. Choosing a higher deductible is the fastest and most effective way to get the premium lowered. The best part is that it won’t increase your risk of getting into an accident. Choose a deductible of $1000 or higher to keep your costs low.

Classes

Many insurance companies are now offering discounts for drivers who take classes. Learn how to be a safer driver with a defensive driving course and enjoy lower premiums. Here are some examples of the savings and benefits that you could take advantage of.

– Geico customers living in most states only pay $19.95 for the approved class but get up to a 10% discount on applicable coverages.
– Ameriprise offers a 5% discount for senior citizens who take a driving class.
– Statefarm offers the Steer Clear Driver Program through their company. Completing the course can earn you a discount with the company.

Other Discounts

Most insurance companies offer discounts for having a clean driving record. When signing up, clarify if you were given that discount. If you have more than two cars you can get a discount for insuring them on the same policy. Talk to the agent about the different discounts you might qualify for. These include discounts for safety features, anti-theft devices, good credit and more.

Mileage

One benefit of working close to home is that you don’t put a lot of miles on the car. The savings in gas is another benefit. What you may not be aware of is that you will also enjoy lower insurance premiums if you do not put a lot of miles on your car in any given year.

Collision and Comprehensive

The decision to skip these coverages should be weighed carefully. If your car is financed, the finance company may require that you carry both coverages. Collision repairs your car after an accident and comprehensive pays for damage caused by vandals, theft or severe weather.

Opting not to have these coverage plans will save you substantial amounts on your policy. However, you must keep in mind that if you cause an accident your insurance will not pay for any damages to your car unless you have collision. Take into account the value of your car and how likely you are to be able to replace it should something happen to it.

Check Around, Even if you have Insurance

You should regularly check with other companies to see if they can beat the rates you currently have. Loyalty doesn’t always reward the consumer, so be willing to change companies. Before making the plunge and moving to another company, call the one you are with and ask if they can match or beat the price you are being offered.

State Programs

Some states offer low-cost auto insurance programs that are designed specifically for low-income families. California, for example, has the California Low Cost Automobile Insurance Program. This program provides the insurance coverage that it required by law at discounted prices that most people can afford. You can contact your local department of job and family services to see if there are any programs in your area that might be of assistance.

Comparison Sites

Sites that ask for one application in exchange for several quotes can help you find the most affordable auto insurance options that are available. The information will come back quickly and you will be able to get the insurance you need to protect your family. Remember to ask for every discount you might qualify for and choose the coverage levels that fit within your budget.


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