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

The cheapest car insurance company for individual drivers with low income and poor credit history in New York is GEICO with a rate of $127 per month. For families with low income, Kemper offers the most affordable rate at $50 per month.

New York does not offer state-backed car insurance programs for low-income families and individuals. Therefore, finding the provider with the most affordable rate is one of their options to manage the cost. There are also ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, there are downsides to this type of coverage. For example, in an at-fault accident, minimum coverage may not fully cover the damages, leaving you with significant out-of-pocket expenses.

Car insurance companies in New York do not consider income when calculating rates. Instead, they look at factors like age, driving record, credit history, and the type of car you drive. At-fault accidents and moving violations can increase your rates.

The best way to find the cheapest rates is to compare quotes from several insurance companies. By doing this, you can see which company offers the most affordable rate for your situation.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, for drivers who rarely drive, pay-per-mile insurance is the best option to save money. MoneyGeek rounded up the cheapest insurers for low-income drivers in New York to help you save.

To legally drive in New York, you must carry state minimum car insurance that includes the following coverages:

• $25,000 for bodily injury liability per person.
• $50,000 for bodily injury liability per accident.
• $10,000 for property damage liability per accident.
• $25,000 uninsured motorist bodily injury per person.
• $50,000 uninsured motorist bodily injury per accident.
• $50,000 personal injury protection (PIP) per person.
• $50,000 death liability per person.
• $100,000 death liability per accident.

Choosing the right car insurance policy depends on your needs. A liability-only car insurance policy covers expenses for the other driver if you're at fault in an accident, but not your own vehicle. For more comprehensive protection, including your vehicle's damages, consider a full coverage car insurance policy. This includes both collision and comprehensive coverages, safeguarding against a range of incidents from theft to natural disasters.

In New York, opting for full coverage is wise. For instance, if you frequently park on the street in NYC, the added protection against theft and vandalism can be invaluable. Understanding both the risks and benefits of various coverages is crucial in selecting a policy that suits your lifestyle and budget.

Credit history plays a crucial role in determining car insurance premiums, especially for low-income drivers in New York. A poor credit-based insurance score can signal higher risk to insurers, leading to increased premiums. Therefore, maintaining a good credit history can help in securing lower insurance rates.

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

• GEICO: $1,525 per year, $127 per month
• Chubb: $1,619 per year, $135 per month

Drivers with good insurance credit, you can get the cheapest car insurance in New York from:

• Kemper: $646 per year, $54 per month
• Progressive: $731 per year, $61 per month

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

While car insurance rates aren't directly influenced by income, your family makeup can sway your premiums. In New York, our analysis found that single parents with a teen face higher annual costs, ranging from $1,716 to $4,101, compared to married couples with a teen, who may find premiums as low as $597 per year, saving them up to $3,504 annually.

The most affordable car insurance options for married couples with a teen in New York are:

• Kemper: $597 per year; $50 per month
• GEICO: $1,017 per year; $85 per month

For single parents with a teen, the cheapest companies are:

• Kemper: $1,716 per year; $143 per month
• Progressive: $1,762 per year; $147 per month

Married couples enjoy lower rates due to insurers viewing them as lower risk compared to single parents. This difference underscores the value of maintaining a solid credit score, as it can be key to unlocking lower car insurance premiums.

Car insurance premiums generally decrease as you reach your early senior years, typically around ages 55 to 65, especially if you maintain a clean driving record.

The two cheapest car insurance for senior drivers with low income and poor credit history are:

• Chubb: $1,366 per year; $114 per month
• Kemper: $1,598 per year; $133 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 New York, there are specific guidelines for senior drivers to ensure they meet the state’s safety standards.

Many factors influence car insurance rates. Although your income doesn't affect the price directly, you might pay more if a low income leads to a poor credit record. Understanding these factors can help you find the best car insurance for your needs.

There are several ways to find affordable car insurance in New York. Here are some tips to lower your car insurance premiums:

Finding affordable car insurance is a common issue for low-income drivers in New York. Get answers to some of the most commonly asked questions about low-income car insurance in New York.