How to Get Help Paying for Car Insurance
If you need help paying for car insurance, only three states offer financial aid—but you can reduce your coverage or look for discounts to lower your costs.
Written by Claire Beaney
Reviewed by Georgina Grant
If you find yourself dealing with
car insurance
bills that you just can’t pay, there are a number of options available to you to lower your premium and make your payments more manageable, including applying for a state-run financial assistance program, seeking out discounts from your insurance company, and reducing your coverage.Everyone hopes they'll never be in a position where they can't afford to pay their auto insurance premium. When it comes to financial aid, though, insurance providers don't have much to offer beyond the standard monthly premium payment plan. But there are things you can do to find affordable auto coverage—and a few states even offer government assistance programs.
If you need car insurance payment assistance, we've compiled a list of essential tips to help you out and some to help you lower your overall car insurance premiums.
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In most cases, you can’t really get help paying for your car insurance. If you're looking for an organization that can help pay your car insurance bills, you might be able to find a local charity or aid group that helps temporarily cover payments in certain short-term situations; however, this isn't common unless there is a government program in your state for low-income families to get car insurance.
In the U.S., there are only three states that provide financial assistance programs to help residents with the cost of auto insurance—California, Hawaii, and New Jersey.
There are
low-income car insurance programs
in these states that may be able to help you with payments, but they have strict eligibility requirements and provide very little coverage. Let’s take a look at these states and their financial assistance program requirements:California
Through the Low-Cost Auto Insurance program from the California Department of Insurance, people who live in the Golden State can get the minimum
liability insurance
legally required for California drivers. The program's insurance does not cover damage to your own vehicle, which is protected by collision coverage in standard policies. For other expenses like your medical care costs after a car accident, you would also need to add uninsured motorist bodily injury coverage and
Medical payments (MedPay) coverage
.Through this program, you can expect to pay between $244 and $966 per year, depending on your age and your county. Compared to the average
California car insurance costs
, that’s definitely on the affordable end. In terms of eligibility, here are the requirements you’ll have to keep in mind:- Be at least 16 years old
- Have a valid California driver’s license
- Own a car worth no more than $25,000
- Meet certain household income requirements—starting at $32,200 for one-person households to $66,250 for four-person households.
Hawaii
Some residents of Hawaii who receive financial assistance from the state's Department of Human Services are also eligible for free auto insurance. And if you do qualify, the program is entirely free.
Here are the requirements you’ll have to meet:
- Own a vehicle
- Have a valid Hawaii driver’s license
- Must receive Supplemental Security Income or assistance from Temporary Assistance for Needy Families; Temporary Assistance for Other Needy Families; General Assistance; or Aid to the Aged, Blind or Disabled.
New Jersey
The
Special Automobile Insurance Policy
in New Jersey pays up to $250,000 for emergency care after car accidents and for severe brain and spinal cord injuries—it also gives a death benefit of $10,000 if someone dies in a car accident. It doesn't, however, cover damage you cause to other people's cars or damage to your own car.If you pay for the policy all at once, your
New Jersey car insurance costs
will only be $360 per year. If you'd rather pay it off in two installments, it will cost you $365. You must be enrolled in federal Medicaid with hospitalization benefits, and have a valid New Jersey driver’s license and registration, to be eligible.What happens if you can’t afford car insurance anymore?
You could be tempted to avoid paying for insurance altogether, but doing so can result in major consequences. Given that all states except
New Hampshire
and Virginia
mandate that motorists carry car insurance, getting caught without it can have serious repercussions, including higher premiums in the future.If you fail to maintain continuous auto insurance coverage as required by your state, you may be forced to submit an
SR-22 form
as proof that you now carry the minimum amount of coverage required by law
. Some insurance companies won't cover a driver with an SR-22 on their record for as long as three years.In addition to the legal consequences, driving without insurance can also result in
- Having to pay out of pocket for the costs of an accident you cause (car repairs, medical bills, etc.)
- License suspension
- Large fines
MORE: The penalties for using fake proof of insurance
How can you lower your car insurance payments?
You should never cancel your auto insurance coverage when you’re still planning on driving—there are other options for saving money on car insurance. Here are some additional ways to reduce your premium.
Ask about discounts
Having a clean driving record, installing anti-theft devices, and bundling your auto and home insurance policies are just a few examples of the many car insurance discounts that can result in a lower premium from most insurers. Make sure you're getting the best deal possible by inquiring about discounts with your insurance agent.
Other common discounts include good student discounts, owning a green car, paperless billing, and low-mileage discounts.
Raise your deductible
If you file a claim, you will be responsible for paying a certain amount, known as the deductible. Let's say you
hit a deer
and incurred $1,000 in damages to your car. If you have a $250 comprehensive deductible
, your insurance company will then pay out $750.Raising your deductible is a surefire way to save money on auto insurance, but it's also a major risk, so just keep that in mind when making your choice.
Reduce your coverage
If your car is worth less than your insurance deductible, it’s time to consider dropping
collision insurance
and comprehensive coverage
. You could save hundreds of dollars per year by dropping these from your car insurance policy—also known as dropping full coverage
.Other ways to save money on car insurance
If the tips above don’t help you out, there are a number of other strategies you may use to save on car insurance:
Shop for a lower rate
Every insurance company has a different way of determining car insurance rates. Before settling on a provider, it's best to compare
car insurance quotes
from at least three different companies. You can also make sure you're still getting the lowest price by comparison shopping every six months.Maintain a clean driving record
It goes without saying that having a
clean driving record
is crucial, especially in today's era of ever-increasing in-car distractions. You can keep your insurance costs low if you take extra precautions on the road and avoid accidents and traffic violations.Drivers receive points for moving violations, and more points can result in higher insurance costs.
Improve your credit score
In most states, insurance companies factor in a consumer's credit history when determining their rates. Drivers with no credit history pay an average of 67% more for auto insurance than someone with a great credit score.
Your insurance premiums should slowly go down as you work to build and improve your credit over time.
MORE: The best car insurance for bad credit drivers
“My speeding ticket raised my insurance to $310/month.Jerrygot me full comprehensive coverage on two vehicles for $144/month through Progressive. I definitely recommend giving them a try.” —Brandon D.
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