State low-cost insurance programs
- California has a low-cost auto insurance program for income-eligible drivers (see California).
- New Jersey offers a special low-cost policy for drivers on Medicaid (see New Jersey).
- Hawaii offers auto insurance help for some public assistance recipients (see Hawaii).
- Some TANF programs pay insurance when a car is needed for work.
Ways to lower your premium
- Compare quotes from at least three insurers every year
- Raise your deductible if you have savings
- Ask about defensive driving, good student and low-mileage discounts
- Consider pay-per-mile or usage-based insurance
- Drop collision coverage on an older, low-value car
Low-income insurance programs in detail
Read our full guide to low-income car insurance programs by state, including California's Low Cost Auto Insurance program, New Jersey's dollar-a-day policy for Medicaid members, and Hawaii's free coverage for public assistance recipients.
Understand what you are buying
- Liability pays for damage you cause to others. It is required in almost every state.
- Collision pays to fix your car after a crash.
- Comprehensive covers theft, weather and other damage.
- Uninsured motorist protects you if the other driver has no insurance.
On an older, low-value car, liability-only coverage can be a reasonable way to save. On a financed car, the lender usually requires collision and comprehensive.
Frequently asked questions
Do free car programs pay insurance?
Most do not pay ongoing insurance, but some (like Charity Cars in Florida) have helped with the first insurance payment. Programs usually require proof that you can afford insurance.
Related help
Find help in your state
- California
- Texas
- Florida
- New York
- Pennsylvania
- Ohio
- Georgia
- North Carolina
- Michigan
- Illinois
- 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.