Repairs, Gas & Costs · Updated November 2026 · By the Free Car Help team
Key takeaways
- Only California, New Jersey and Hawaii run low-income car insurance programs.
- Every state has an assigned-risk plan for hard-to-insure drivers.
- Comparing quotes is the fastest way to save.
States with low-income car insurance programs
- California – California Low Cost Auto Insurance: for income-eligible good drivers with a car worth $25,000 or less. Call 1-866-602-8861.
- New Jersey – Special Automobile Insurance Policy (“Dollar-a-Day”): about $365 a year for drivers enrolled in federal Medicaid with hospitalization. It covers emergency medical care, not damage to cars.
- Hawaii: a limited state program for certain eligible drivers. Ask the Hawaii Insurance Division.
What about Indiana, Virginia, Colorado, Ohio and other states?
Most states — including Indiana, Virginia, Colorado, Ohio, Oregon, Kentucky, South Carolina, Tennessee, Maryland, Washington, New York, Missouri, Wisconsin, Louisiana and Nevada — do not have a state-run low-income insurance program. Every state does have an “assigned risk” or residual market plan for drivers who are turned down by regular insurers, and Maryland has its own state insurer of last resort (MAIF).
How to lower car insurance on a low income
- Get quotes from at least three insurers, including small regional companies.
- On an older car you own outright, consider your state’s minimum liability coverage.
- Ask for discounts: good driver, low mileage, defensive driving course, paperless billing, paying in full.
- Raise your deductible only if you could afford to pay it.
- Re-shop every year — prices change.
Some car programs, like Kentucky’s Goodwill Cars to Work, help participants with insurance. See also insurance and registration help.
Frequently asked questions
Is there government car insurance for low-income drivers?
Only in California, New Jersey and (on a limited basis) Hawaii. Other states offer assigned-risk plans for hard-to-insure drivers but not low-income pricing.
Do charities help pay car insurance?
Some car ownership programs help with the first payment, and local charities occasionally provide one-time help. Ask when you apply.
