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

The cheapest car insurance for individual drivers with low income and poor credit history in Rhode Island is Travelers at $62 per month. For families with low income, the most affordable provider is State Farm at $66 per month.

Rhode Island does not offer state-backed car insurance programs for low-income families and individuals. Finding the provider with the most affordable rate is one option to manage costs, and 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 to pay out-of-pocket.

Car insurance companies in Rhode Island do not consider income when calculating your car insurance 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 will increase your rates. To find the cheapest rates, it's best to compare quotes from several insurance companies.

Comparing multiple quotes ensures you get the most affordable rate available. If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, if Rhode Island offers pay-per-mile insurance, it's the best option for drivers who rarely drive. MoneyGeek rounded up the cheapest insurers for low-income drivers in Rhode Island to help you save.

To legally operate a vehicle in the Ocean State, you must carry car insurance that satisfies the state's minimum car insurance requirements. This includes the following coverage amounts:

• $25,000 for bodily injury liability per person.
• $50,000 for bodily injury liability per accident.
• $25,000 for property damage liability per accident.

If you're on a tight budget, a liability-only car insurance policy may suffice, covering damages to others if you're at fault in an accident but not your own vehicle. To protect your car against damages from various risks, consider a full coverage car insurance policy, which includes collision and comprehensive coverages.

In Rhode Island, where coastal storms can cause significant damage, opting for full coverage can be particularly wise. It provides peace of mind against the financial impact of events like theft, vandalism, or weather-related incidents. Assessing the risks and benefits of each policy type ensures you choose the coverage that aligns with your needs.

Your credit record can affect your car insurance rates in Rhode Island. A lower credit-based insurance score may signal to insurers that you're a higher risk, which can lead to more expensive premiums.

Rhode Island drivers with poor credit records can find affordable rates with:

• Travelers: $745 per year; $62 per month
• Amica Mutual: $826 per year; $69 per month

The cheapest car insurance in Rhode Island for low-income drivers with a good credit history are:

• Travelers: $475 per year; $40 per month
• American Family: $504 per year; $42 per month

Driving without insurance in Rhode Island is considered a misdemeanor and can lead to suspension of your driver's license and vehicle registration, fines ranging from $175 to $1,000 and other penalties. Make sure you're covered to drive legally and safely.

Car insurance premiums are not directly tied to income, yet your family situation can influence the cost. In Rhode Island, a single parent's annual premium can differ by $470 compared to a married couple with a teen, with the latter enjoying rates cheaper by $470 per year.

The cheapest car insurance companies for married couples with a teen in Rhode Island are:

• State Farm: $786 per year; $66 per month
• Travelers: $966 per year; $81 per month

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

• State Farm: $1,256 per year; $105 per month
• Allstate: $2,160 per year; $180 per month

Married couples with a teen can find minimum coverage auto insurance for less than single parents. This may be due to the perception of lower risk by insurers. A good credit score plays a critical role in securing cheaper car insurance rates, so it's worth keeping your credit in check.

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

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

• Travelers: $68 per month, $818 per year
• State Farm: $90 per month, $1,085 per year

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 Rhode Island, there may be specific laws or guidelines for seniors obtaining car insurance.

Income doesn't directly affect car insurance rates in Rhode Island. However, if low income leads to a poor credit record, it can result in higher rates. Conversely, good credit can help lower your rates. Understanding the factors that contribute to car insurance rates can help you make informed decisions in choosing the best car insurance for you.

You don't need a state-sponsored program to cut costs — finding affordable car insurance in Rhode Island is possible with the right strategies. Here are some tips to lower your premiums:

Finding affordable car insurance in Rhode Island can be tough for drivers with low incomes. Here are answers to some of your most common questions on how to save.