If You Qualify for Low Income Housing Does That Affect Your Car Insurance Rates?






If you currently qualify for low income housing, then it is very likely that you are still struggling to make ends meet. While many low income housing programs, such as the Section 8 housing program, can provide significant discounts on rent and utilities, it can still sometimes be hard to pay for all of life’s other necessities on a lower than average income. One very expensive cost that many people, low income or not, struggle with is automobile insurance. Having automobile insurance is required in almost all states, and those who cannot afford it often have to miss out on driving. This can make it difficult for you to secure employment or to keep a job for an extended period of time and is also a huge inconvenience for those who live in areas without adequate public transportation. Oftentimes, not having access to a vehicle can make your financial situation even worse and make it impossible for you to crawl out of the difficult times you have found yourself in. Fortunately, however, many areas offer special reduced cost car insurance for those who qualify for low income housing or other types of government assistance.

Many states, such as New Jersey, have a plan in place called the Special Automobile Insurance policy. This insurance policy offers low income drivers a small amount of car insurance for a very low fee, usually around $300, each year. All drivers must be applicable for federal Medicaid with hospitalization and must be able to show proof of their current income. While this insurance will not provide coverage for collisions or theft, it does give drivers very basic medical coverage and can really come in handy in the event of an accident.

Of course, this option is not available in all or even most states. However, some other states do offer a Low Cost Automobile Insurance Program. California is one of the main states that offers this service to its qualifying residents. In order to qualify for this program, drivers have to be at least nineteen years of age, to have been driving and licensed for at least three years, to meet all “good driver” qualifications set in place by the state, to own a vehicle under $20,000, and to have an income within a certain “low” range.  Like the Special Automobile Insurance Policy, this program offers minimum amounts of coverage, but they are, quite simply better than nothing. Drivers can receive up to $10,000 in bodily injury liability for accidents in which one person is injured; up to $20,000 in bodily injury liability for accidents in which more than one person is injured; and up to $3,000 in property damage liability for each accident.

Every state, however, is different and has different policies surrounding low income drivers and their car insurance. Your best bet is to contact the insurance bureau in your area or your housing counselor and to ask what programs are in place that could possibly help you to obtain affordable insurance.


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