California Low Cost Auto Insurance (CLCA)
California's program offers affordable liability coverage to income-eligible drivers. Applicants generally need:
- A valid California driver's license and to be at least 16
- A vehicle valued at $25,000 or less
- Household income within the program's limits, which are tied to the federal poverty level
- A good driving record
Coverage is basic liability and the price depends on your county. Apply through the program's official site, mylowcostauto.com. See our California guide.
New Jersey Special Automobile Insurance Policy (SAIP)
Known as "dollar-a-day" insurance, SAIP costs about $365 a year ($360 if paid in full). It is for drivers enrolled in federal Medicaid with hospitalization. The state describes it as a medical coverage policy, so it does not include the liability, collision or comprehensive coverage a standard policy has. See our New Jersey guide.
Hawaii free no-fault coverage
Hawaii provides basic no-fault auto coverage at no cost to eligible recipients of state cash assistance or SSI, through the state's joint underwriting plan. Coverage is limited to one vehicle and ends after benefits stop. Ask your benefits worker. See our Hawaii guide.
If you cannot get insured anywhere
Every state has an assigned risk plan (often called an automobile insurance plan) for drivers who are turned down by regular insurers. It costs more than standard insurance, but it keeps you legal while you improve your record. Maryland also runs the Maryland Auto Insurance Fund for drivers who cannot find coverage.
Proven ways to lower your premium
- Compare at least three quotes every year
- Ask about low-mileage, good student, defensive driving and bundling discounts
- Try usage-based or pay-per-mile insurance if you drive little
- Raise your deductible if you have some savings
- Drop collision and comprehensive on an older, low-value car
- Pay in full or by autopay to avoid installment fees
Frequently asked questions
Is there government car insurance for low-income drivers?
Only a few states run programs, mainly California (CLCA), New Jersey (SAIP) and Hawaii. Elsewhere, compare quotes and use discounts or the state's assigned risk plan.
Does Medicaid cover car insurance?
No, but in New Jersey, Medicaid enrollment with hospitalization qualifies you for the low-cost SAIP medical-only policy.
Related help
Find help in your state
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- New York
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- Georgia
- North Carolina
- Michigan
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- All 50 states + DC
Reviewed November 2026. This page was researched using official government and program sources. Programs change often, so please confirm details with each program before applying. How we research.