Low Income Car Insurance Programs

Select states offer low income car insurance assistance for those who meet specific financial requirements. However, most states don’t have programs for those struggling to afford auto insurance. If you’re struggling with high premiums, it’s essential to shop around and carefully choose coverage for your budget.

Auto insurance is an essential expense that almost all families have. In all but one state, if you operate a motorized vehicle, it must be insured. Basic coverage can cost hundreds of dollars each month, which can be overwhelming for many individuals and families.

New Jersey’s Special Automobile Insurance Program (SAIP)

New Jersey has a Special Automobile Policy known as SAIP. This program is called NJ Dollar a Day Car Insurance because it costs exactly $365 if paid in two installments. If paid upfront in full, it costs just $360 annually. It’s important to note that this limited plan provides minimal coverage. It only covers medical care-related expenses resulting from an accident. Therefore, as it is “bare bones” coverage, it should only be considered if no other options are available.

Therefore, since the New Jersey SAIP program does not cover liability or vehicle repairs, you could face high out-of-pocket costs if you’re at fault in an accident. Still, for those NJ residents who cannot afford standard coverage, it can be helpful to get legally insured.

Eligibility and Enrollment for NJ SAIP

Who Qualifies?

To be eligible for $1 dollar New Jersey low income car insurance program, you must

✔ Be actively enrolled in Federal Medicaid
✔ Provide proof of enrollment with a current Medicaid card

How to Apply

Most local agencies offer NJ low income auto insurance plans:

✔ Contact a licensed insurance agent to apply in just a few minutes
✔ If your local agency doesn’t provide this plan, call the Personal Automobile Insurance Plan at 800-652-2471 to find a provider.

Important Reminders

• Present a current Medicaid card to the agent, before implementing your policy
• Always carry your Medicaid card in your car for verification.
• Be aware that the NJ Dollar-A-Day car insurance program offers limited insurance.
• Upgrade your coverage as soon as you can afford a more comprehensive policy.

California Low-Cost Car Insurance Program

California has the highest number of vehicles in the U.S., making car insurance costly for many residents. This is where California Low-Cost Auto Insurance (CLCA) program helps eligible low-income drivers get affordable coverage. Created in 1999, this valuable program has helped thousands of individuals and families buy cheap CA car coverage. The California Department of Insurance does not administer the CLCA insurance program. Instead, it is sold through select carriers that work with the California Automobile Assigned Risk program throughout the state.

CLCA insurance provides legal amounts of coverage for good drivers. There are several requirements including:

• Possess a Valid California Driver’s License or have an AB60 license
• Must be a minimum of 19 Years Old
• Yearly Income under 250% of the poverty level, and You Must show Proof
• The Automobile Being Insured Must be Worth Less than $25,000
• Limitations of Two Automobiles and Two Policies per Person
• Have no more than One Point from a Moving Violation on Your Driving Record in Three years
• Have no more than one At-Fault Auto Accident in Three years

Average Annual CLCA Car Insurance Costs

Savings under the California Low Income Car Insurance Program can be significant. Many motorists with a safe driving record and no accidents can get covered for less than $400 annually. Here are some average yearly premiums under the program for several cities:

One way to lower your premium is to maintain a safe driving record and avoid accidents and tickets. You can be banned from these programs for getting a DUI or being found at fault for a reckless accident that resulted in a death or serious injury. Also, if your income exceeds the annual threshold, you must inform the CLCA program.

Get Cheaper Car Insurance Online If You’re Not Eligible for Assistance

If you don’t qualify for a state low-income insurance program, there are still ways to lower your premiums:

✔ Compare quotes from multiple providers – Rates vary significantly, so shopping around can help you find a better deal.
✔ Adjust your coverage – Remove wasteful and overlapping coverage while maintaining essential protection.
✔ Take advantage of discounts – Many insurers offer savings for safe driving, bundling policies, or low-mileage use.

Enter your zip code now and find better coverage and lower rates in your area.

Take Control of Your Car Insurance Costs

Affordable car insurance is possible, whether through a state assistance program or by taking smart steps to lower your premiums. If you qualify for a program like SAIP or CLCA, take advantage of the savings. If not, comparing quotes and adjusting your coverage can still help you find the best rates.

Don’t overpay for car insurance—start exploring your options today!