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

For drivers in Vermont with low income, Allstate offers the cheapest minimum coverage car insurance at $33 per month. It also has the best rates for families with teens, at around $31 per month. Although Vermont doesn't offer state-backed insurance pools for drivers with low income, these affordable plans can help manage costs.

A minimum coverage policy is usually the cheapest, but it may not cover all expenses in an at-fault accident. Consider pay-per-mile insurance if you don't drive much, an even more affordable option in the Green Mountain State.

Car insurance companies in Vermont do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history and type of car. 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.

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

To legally operate a vehicle in Vermont, you're required to carry the state's minimum car insurance requirements that adhere to the following liability coverage limits:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $10,000 for property damage liability per accident
• $50,000 uninsured motorist bodily injury per person
• $100,000 uninsured motorist bodily injury per accident
• $10,000 uninsured/Underinsured property damage coverage

If budget constraints are a concern, a liability-only car insurance policy can be a cost-effective option. It covers expenses for the other driver if you're at fault in an accident, but it doesn't cover damages to your own vehicle. To protect your own car, consider a full coverage car insurance policy, which includes collision and comprehensive coverages. These coverages safeguard your vehicle against various non-collision incidents, such as theft, natural disasters or being hit by an animal like a deer.

Assessing the risks and benefits of different coverages is crucial to determining the best policy for your needs.

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

Vermont drivers with poor credit records can find affordable rates with:

• Allstate: $398 per year; $33 per month
• Concord Group: $476 per year; $40 per month

The cheapest car insurance in Vermont for drivers with low income and good credit history are:

• State Farm: $218 per year; $18 per month
• Vermont Mutual: $236 per year; $20 per month

Driving without insurance in Vermont 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 rates in Vermont don't depend on your income, but your family situation does play a role. For instance, a single parent with a teen faces an annual premium of $647, while a married couple with a teen can secure more pocket-friendly coverage at $369 per year — a difference of $278 more each year.

The most affordable car insurance for married couples with a teen in the Green Mountain State comes from:

• Allstate: $369 per year; $31 per month
• State Farm: $422 per year; $35 per month

Single parents looking for minimum coverage will find these rates:

• Allstate: $647 per year; $54 per month
• State Farm: $672 per year; $56 per month

The gap in rates between married couples and single parents underscores the impact of household status on insurance costs. A good credit score is also key, as it can unlock doors to more affordable premiums.

Car insurance premiums generally decrease as you reach the early senior years, typically around ages 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:

• Allstate: $458 per year; $38 per month
• Concord Group: $472 per year; $39 per month

After the age of 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. Vermont has no specific laws or guidelines for seniors getting car insurance.

Your income doesn't directly affect car insurance rates in Vermont. However, if a low income leads to a poor credit record, this can result in higher rates. Conversely, a good credit score 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.

There are several ways to find affordable car insurance in Vermont. Whether or not you qualify for state-sponsored programs for drivers with low income, here are some tips to lower your car insurance premiums:

Finding affordable car insurance for drivers with low income can be challenging. Get answers to some of the most commonly asked questions about low-income car insurance in Vermont.