Cheapest Car Insurance for Low-Income Drivers in Maine (October 2024)

Travelers is the cheapest car insurance company for individual drivers with low income and poor credit history at $42 per month. For families with low income, Concord Group is the most affordable provider at $42 per month. Maine does not offer state-backed car insurance programs for families and individuals with low income. Finding the provider with the most affordable rate is one option to manage costs. There are also ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, it has its downsides. For example, minimum coverage may not cover all the damages in an at-fault accident, leaving you financially vulnerable.

Car insurance companies in Maine do not consider your income when calculating rates. Instead, they look at factors like your age, driving record, credit-based insurance score and type of car. At-fault accidents and moving violations can increase your rates significantly. The best way to find the cheapest rates is to compare quotes from several insurance companies.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. If you drive infrequently, pay-per-mile insurance can also be a cost-effective option. MoneyGeek rounded up the cheapest insurers for drivers with low income in Maine to help you save.

To drive legally in Maine, you must have state minimum car insurance that satisfies specific liability insurance amounts. Here's what you need:

• $50,000 for bodily injury liability per person
• $100,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident
• $50,000 uninsured motorist bodily injury per person
• $100,000 uninsured motorist bodily injury per accident
• $2,000 medical payments coverage

If you're on a budget, a liability-only car insurance policy covers the other driver's expenses in an at-fault accident but not your own vehicle. For broader protection, including your own car, consider a full coverage car insurance policy. This includes collision and comprehensive coverages, safeguarding against various damages, such as theft or natural disasters.

Assess the risks and benefits of different coverage types to determine what's best for your situation.

Credit history is crucial for drivers with low income in Maine, as it significantly affects car insurance premiums. A lower credit-based insurance score can signal higher risk to insurers, resulting in increased premiums. Maintaining a good credit history can help secure affordable insurance rates.

The cheapest car insurance companies for drivers with low income and poor credit in Maine are:

• Travelers: $502 per year; $42 per month
• Concord Group: $553 per year; $46 per month

Drivers with low income and good credit can get the cheapest car insurance in Maine from:

• Vermont Mutual: $278 per year; $23 per month
• Travelers: $326 per year; $27 per month

Securing state minimum coverage is essential, as driving without insurance in Maine is illegal. It is considered a misdemeanor and can lead to suspension of your driver’s license and vehicle registration and fines ranging from $175 to $1,000, along with other penalties.

While income doesn't directly impact car insurance rates, your family situation does. In Maine, a single parent with a teen faces an annual premium of $407 higher on average than a married couple with a teen. For couples, the annual rate can be as affordable as $503, but for single parents, it starts at $910.

The cheapest car insurance companies for a married couple with a teen in Maine are:

• Concord Group: $503 per year; $42 per month
• State Farm: $589 per year; $49 per month

For a single parent with a teen, the most affordable options are:

• State Farm: $910 per year; $76 per month
• Concord Group: $986 per year; $82 per month

Married couples enjoy lower premiums due to perceived stability and lower risk, whereas single parents may face higher rates. Regardless of your family type, keeping a good credit score is key to securing more affordable car insurance rates.

Car insurance premiums generally decrease as you reach early senior years, typically around age 55 to 65, especially with a clean driving record. The two cheapest car insurance for senior drivers with low income and poor credit history are:

• Travelers: $479 per year; $40 per month
• Concord Group: $533 per year; $44 per month

After age 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Maine, specific guidelines or laws for seniors getting car insurance may apply.

Your income doesn't directly affect car insurance rates in Maine. However, if a low income leads to a poor credit record, this can result in higher rates. On the other hand, good credit can help you get lower rates. Understanding the factors contributing to car insurance rates can help you make informed decisions when choosing the best car insurance for you.

Whether you're looking for state minimum coverage or options for drivers with low income, finding affordable car insurance in the Pine Tree State can be easier with the right strategies. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance for drivers with low income in Maine can be challenging. Here are the answers to common questions about low-income car insurance options in the Pine Tree State.