For a single parent (no matter if mother or father), the cost of car insurance is going to be very important. There are government-sponsored car insurance programs for low-income families. Getting the right (ideally the cheapest) coverage is essential for every single person. But low income people are in the most complicated situation. Everybody knows, auto insurance coverage is required in most U.S. states. As a single mother, there are some ways to bring your car insurance costs down and save some money. Adding a teenage driver to your current policy is one of them! Applying for government sponsored insurance programs is another option. This small guide will show you how to save on car insurance in your state and how to apply for Low Cost Insurance Program in your state!
Also check government-sponsored car insurance programs for low-income families in your state! California, New Jersey, and Hawaii have low-income auto insurance programs!
California's Low Cost Auto Insurance Program
California's Low Cost Automobile Program is designed to provide income eligible persons (single parents, low income citizens, single mothers/fathers) with liability insurance protection at affordable rates. Consumers should visit www.mylowcostauto.com or call 1-866-602-8861 to see if you qualify for this discount and locate a certified insurance agent in your area (agent locator - zip code search). To qualify for the California's Low Cost Auto Insurance Program (CLCA), you must meet some requirements:
- be at least 19 years old
- meet income eligibility (actual rates and complete guide - pdf)
- have a good driving history (driver record - definition of good driver in California - pdf)
- you must own a car (valued at $20,000 or less / newest update: from $20,000 to $25,000)
All vehicles in your household must be covered under the CLCA program.
A basic policy under the CLCA insurance program covers:
- Up to $10,000 per person in case of bodily injury or death
- Up to $20,000 per accident in case of bodily injury or death
- Up to $3,000 for property damage
Bodily injury optional coverage for uninsured motorist
Some statistics and studies (IRC) are telling us, that 1 driver out of every 7 drivers in the United States is currently uninsured. Many states are now requiring uninsured motorist coverage which covers medical expenses, pain and suffering, lost wages. If you are injured, having “Uninsured Motorist – Bodily Injury” insurance helps cover your medical costs as follows:
- Up to $10,000 per person (you or your passengers)
- Up to $20,000 per accident
- Medical Payments covers medical costs as follows: $1,000 per person injured
How to apply?
How to sign up for this government discount? Firstly, take this brief questionnaire to see if you qualify. Complete the application process (100% online) or meet with a local agent near you, at no cost. You can also find out the annual premium in your county by using "affordable calculator" at mylowcostauto.com.
CLCA office: contacts, phone numbers, adress
- Consumer Education and Outreach Bureau - contact CA office
- 300 S. Spring Street, South Tower
- Los Angeles, CA 90013
- Toll free (877) 401-9550
New Jersey's Special Automobile Insurance Policy (SAIP)
The SAIP (Special Automobile Insurance Policy) is an initiative to help low income people in NJ get insured! Such New Jersey drivers can obtain a medical coverage-only policy at a cost of $365 a year, if you pay up front or $365 in two installments. To be eligible for SAIP policy, you must be enrolled in Federal Medicaid with Hospitalization and have a current valid driver's license (Basic automobile driver license - DDL). Medicaid provides health insurance to parents/caretakers and dependent children, pregnant women, and people who are aged, blind or disabled
What does New Jersey SAIP policy cover? What doesn't?
Emergency treatment immediately following an accident and treatment of serious brain and spinal cord injuries up to $250,000. It also provides a $10,000 death benefit. The SAIP policy doesn't cover outpatient treatments such as doctors' visits covered by Medicaid, damage you may cause to other persons or property (liability coverage), or damages to your own car (collision and comprehensive coverages). Each SAIP applicant must demonstrate enrollment in Medicaid program. For the first time and at each renewal.
Important: individuals from New Jersey with a suspended or revoked driver's license or registration are not eligible for the SAIP policy. You can apply to SAIP through most insurance agents in New Jersey.
Your SAIP auto insurance premium will be:
- $360 per year if you pay up front.
- $365 per year if you pay in two installments.
We can reccommend you to use the New Jersey Auto Insurance Purchasing Planner. This online application is an interactive guide to buying an auto insurance policy in New Jersey. By using this app you will be able to ask your insurance agent or insurance representative (broker) more detailed questions about what kind of coverage is best for you, your child, wife and your whole family. When you are finished, you can use the selection sheet when talking to your insurance agent.
Hawaii's Low Cost Disability Auto Insurance Program
According to Hawaii state law and insurance division (http://cca.hawaii.gov/ins/), any driver or person unable to drive a motor vehicle due to permanent disability may receive free personal injury protection (PIP) and liability insurance from the NJ state. Car insurance under this program is 100% free of charge.
The Assistance to the Aged, Blind and Disabled (AABD)
- 65 years old or older
- Do not qualify federal benefits
- Social Security Administration (SSA) definition of disabled or blind
- Individuals must have countable income below 34%
- Not exceeding of $2,000 for a single person and $3,000 for a couple
Join the discussion, share experiences, discuss with others
- My Car Was Hit by a Driver With SAIP Insurance
- How to Apply for the Low Income State Car Insurance in New Jersey
- How to Apply for the Low Income State Car Insurance in California
- How to Apply for the Low Income State Car Insurance in Hawaii
- Everything You Wanted to Know About Auto
- What Is Dollar a Day Insurance in New Jersey?
- New Jersey Residents Insured Under Dollar-a-day Program Can Also Be Victims
- Does N.j.'s Insurance Program for Poor (Low Income) Makes Others Pay Price?
- Auto Insurance for Medicad Eligible - Njsaip Dollar a Day Policy!
- Nj Residents Against Speacial Automobile Insurance Policy
- N.j. Automobile Insurance and the Law
- What You Should Know About Low Income Car Insurance in California, New Jersey, Hawaii
- Dave Jones, Commissioner
- (Chair, Western Zone)
- California Department of Insurance
- 300 Capitol Mall, Suite 1700
- Sacramento, California 95814
- Phone: 916.492.3500
- Fax: 916.445.5280
- 45 Fremont Street, 23rd Floor
- San Francisco, California 94105
- Phone: 415.538.4010
- Fax: 415.904.5889
- 300 South Spring Street
- South Tower
- Los Angeles, California 90013
- Phone: 213.346.6464
- Fax: 213.897.9051