State low-income car insurance programs
| State | Program | Who qualifies |
|---|---|---|
| California | California Low Cost Auto Insurance | Income-eligible good drivers with a car worth $25,000 or less, regardless of immigration status |
| New Jersey | Special Automobile Insurance Policy (“Dollar-a-Day,” about $365/year) | Drivers enrolled in federal Medicaid with hospitalization |
| Hawaii | Limited low-income no-fault program | Reported for eligible seniors |
In other states there is no government insurance program, but you can still lower your premium.
Ways to lower car insurance if you have low income
- Compare at least three quotes every year.
- Choose your state’s minimum liability coverage on an older car you own outright.
- Ask about good-driver, low-mileage, defensive-driving and paperless discounts.
- Pay in full if you can, or ask for a plan without installment fees.
- Kentucky’s Goodwill Cars to Work program helps participants find affordable insurance.
Help with car registration
Many states reduce registration fees for disabled veterans, and some offer senior discounts. See our guide to free or reduced car registration for seniors. TANF offices and some charities can also help with registration and title costs when they are a barrier to work.
Where to find insurance & registration help programs
These are the insurance & registration help programs we found, by state. Programs change often, so contact each one to confirm eligibility. TANF supportive services in every state can also help with transportation costs.
| State | Program | Area served |
|---|---|---|
| California | California Low Cost Auto Insurance | Statewide (government) |
| Hawaii | Low-income no-fault insurance | Statewide (government) |
| Kentucky | Goodwill Cars to Work | Most of Kentucky |
| New Jersey | Special Automobile Insurance Policy (“Dollar-a-Day”) | Statewide (government) |
Help paying for registration, title and tags
Registration and title fees can block someone from driving a donated or newly purchased car. Ask the car program whether it covers title transfer and first registration, check with your TANF office about supportive services, and ask your DMV about fee exemptions for disabled veterans or seniors.
Frequently asked questions
Is there government car insurance for low-income drivers?
Only a few states run programs: California, New Jersey and Hawaii. Elsewhere, compare quotes and use discounts to lower your premium.
Can charities help pay car insurance?
Some car ownership programs help with the first insurance payment, and some charities offer one-time help. Ask when you apply.