Auto Insurance Discounts for People With Low Income
If you have recently shopped around for auto insurance, you might have noticed that it is expensive. In fact, auto insurance can be so expensive that people with low incomes have to compromise on essentials just to be able to afford to drive. Luckily, there are some alternatives to reduce the cost of auto insurance.
It can be fairly difficult to find all of the available auto insurance discounts available for low income earners. Fortunately, we have rounded up the programs that are currently available to make it easy for you to save money. If you are a low income earner and want to reduce your insurance costs, please consider the following options.
Government Auto Insurance
Some drivers know about government auto insurance programs that are meant for low income earners, but not everyone knows about it.
If you’re unable to afford your auto insurance premiums, you should look into government auto insurance. They are sometimes called state-sponsored auto insurance programs and they can help you get the coverage you need for less.
For now, three states provide government auto insurance for low-income people: New Jersey, California, and Hawaii. These state-assisted policies each provide different levels of liability and insurance coverage. However, each plan does offer absolutely everything you need to be able to legally drive.
Each government auto insurance option has different costs and requirements to qualify. You should look into exactly what your state offers and make sure you meet the qualifications with your income level. If you meet the qualification, you can decrease your premium or gain access to special plans just for low-income drivers.
Other Forms of Insurance Discounts
You don’t have to worry if government auto insurance doesn’t work for you. You can still cut the cost of your auto insurance by using other tactics that we will outline below.
While these discounts are extended to all drivers regardless of income, some people don’t know they exist and are therefore paying much higher costs than they need to be. We recommend all people try using these discounts to reduce the price of their car insurance.
Safe Driver Discount
According to industry experts, the safe driver discount is one of the most viable discount options for drivers. Insurance companies usually offer you a discount if you’ve managed to go several years without any at-fault accidents or traffic tickets. Other auto insurance providers will even let you download an app or install a device in your vehicle to prove you’re a safe driver for a lower premium rate. The discount increases with each year you qualify and remain accident and ticket free.
Bundle Multiple Policies
Another way of saving money is when you have two or more kinds of insurance policies with the same insurance company. Insurance policies usually offer discounts to customers who buy multiple policies, like auto and homeowner’s insurance or auto and renter’s insurance. According to The Zebra, this discount can save you money across all of your insurance.
Good Student Discount
If you’re studying in school or have recently graduated, you are eligible for a good student discount with your auto insurance provider.
A number of auto insurance companies give a discounted rate to students who have a good GPA. You only need to show them your transcript or report card to qualify for a discount.
Senior or Low Mileage Discount
If you’re an older adult, you can get a discount on your auto insurance premiums. Since seniors usually drive fewer miles they typically cost less to insure. The same applies to any drivers who are on the road infrequently. You can get a discounted price on your insurance if you put a low number of miles on your vehicle each year. Just make sure to ask for the low mileage policy.
How to Qualify for Savings?
Low-income families or individuals don’t need to pay the high prices of auto insurance. There are several methods to save money, and it’s time to take advantage of these discounts.
However, it’s essential to research first before starting to save money on your auto insurance. To be eligible for state-sponsored auto insurance, you have to check the specific rules in your state. You can also research particular incentives for low-income people in your locality. It varies across the city, state, and region. So, it’s always advisable to do your research, which will enable you to find discounts and insurance plans that fit your specific requirements.
Also, remember to compare prices before picking an incentive, discount, or low-cost insurance plan as it will enable you to find the best possible rates before you finalize your choice.