How to Get Car Insurance if You Can't Afford It

Car insurance premiums are determined based on many factors out of your control, such as your age and location. However, coverages also affect the cost — the lower the coverage, the more affordable the premium. It’s possible to find car insurance premiums as low as $17, depending on where you live.

Beyond lowering your coverage, you can also save on a policy by comparing car insurance quotes, finding discounts you may be eligible for or buying pay-per-mile insurance.

• What to Do if You Can’t Afford Car Insurance
• How to Find Affordable Minimum Coverage Insurance in Your State
• How to Get Insurance Discounts
• When to Consider Pay-Per-Mile Car Insurance
• How to Make Insurance Cheaper Over Time
• Frequently Asked Questions
• Read More About Car Insurance

When you need car insurance but can’t afford it because rates are too high, there are ways to find more affordable options. MoneyGeek listed some key strategies below to help lower the cost of auto coverage. The first few measures — comparing quotes and changing coverage limits — are quick and easy to do. Options like improving your credit score and removing driving violations from your record can take anywhere from a few months to a year.

If you can't afford car insurance and have trouble finding a policy that suits your needs, note that a minimum coverage policy is the lowest level of coverage you should purchase. The minimum amount of coverage you'll need depends on the laws in your state, as it can vary depending on where you live.

While a policy following a state’s minimum coverage limits may be cheaper than most, note that it might not be how much car insurance you’ll really need. Minimum coverage policies don’t come with comprehensive or collision insurance, which protect your vehicle, yourself and passengers in an accident.

To help you find the cheapest options, MoneyGeek listed the most affordable insurance companies for the average driver in each state. For instance, Nodak Mutual in North Dakota offers car insurance at an average of $17 per month, while GEICO provides coverage for $19 in Idaho.

Certain states provide assistance programs for drivers who can’t afford car insurance, including:

• California’s Low-Cost Automobile Insurance Program (CLCA): Provides drivers with a policy that has 10/20/3 coverage limits.
• New Jersey’s Special Automobile Insurance Policy (SAIP): This dollar-a-day program supplies medical coverage to low-income drivers.
• Hawaii’s Aid to the Aged, Blind and Disabled Program (AABD): Gives free auto insurance to elderly individuals and those who meet the Social Security Administration’s definition of being disabled or blind.

Note that, while discounts can lower your premiums, what matters most is your final quote. In some cases, the companies that offer the most discounts don’t have the lowest overall prices. Comparing rates and deals from multiple companies can help you find the cheapest policy for you.

If you’re a driver who doesn’t use your car often, you may benefit from pay-per-mile or behavior-based car insurance. These are more affordable options than typical car insurance policies. However, MoneyGeek found that drivers need to drive less than 26 miles per week for pay-per-mile insurers like Metromile to be cheaper than traditional providers.

One of the best ways to reduce the cost of your car premiums is to ensure that you have a good driving record and credit score. These two factors have a significant impact on the cost of car insurance.

However, changing these factors may take a good deal of time. In some cases, it can take years for a traffic violation or ticket to be removed from your record. You can gradually improve your credit score by paying past balances and catching up on any past-due accounts.