If your income is at or below the poverty line, you may find it difficult to get an affordable car insurance policy.
While car insurance companies do not ask for your income, they do ask for other items that can give them an idea of your yearly income.
Since poor people are considered more likely to file claims, the premiums often reflect this assumption.
If you are having trouble finding an affordable car insurance policy, you can use a free car insurance comparison tool to quickly compare several available plans in your area. An online comparison tool will allow you to find car insurance that both meets your needs and your monthly budget.
Try our FREE online quote tool today and start comparing auto insurance rates! Enter your ZIP code above!
Criteria that Determines Your Car Insurance Premium
Car insurance companies don’t ask for your income, but they do ask for information that can help them figure out whether you are rich or poor, including your address and job. Some insurance companies even check your credit score.
- Your Location – If the area is known for poverty or a high crime rate, your insurance company may determine that you do not make much money per month. Officially, your car insurance premiums are higher, because your vehicle may be more likely to get broken into or stolen. Having your vehicle broken into or stolen results in the insurance policyholder filing a claim.
- Your Job – Your job can give your insurance company an idea of your income range. For example, a doctor is going to make more money per year, on average, than a social worker. Your job may also give your insurance company an idea of how many miles you drive per day to and from work. Both of these things could lead to higher premiums.
- Your Credit Score – A low credit score reveals that you do not always pay your bills on time. You may have even defaulted on bills. Your insurance company looks at a low credit score as an indication of whether you have the money to fix your car yourself after a minor fender bender.
Other Factors that Influence Your Car Insurance Rates
While your location, your job and your credit score can tell your insurance company how financially well-off you are, other factors do go into calculating your car insurance premium, and they can make a difference as to whether your rate increases or decreases.
- Driving Record – Your driving record can positively or negatively influence your car insurance rates. If you have very few speeding tickets and infractions, your premium would be lower than someone who has had several driving violations over the last few years.
- Your Vehicle – Different years, makes, and models of cars can raise or lower your premium. In general, you will pay less for car insurance if you drive an older car or a car with several built-in safety features.
- The Amount of Insurance Coverage You Require – If you need a lot of insurance with a low deductible, you will pay more for coverage than a driver that chooses liability only car insurance.
How to Get an Affordable Car Insurance Policy Even if You Are Poor
When you do not have much disposable income, it is important to make sure you are getting a policy that financially protects you in case of a car accident, particularly one that you can afford.
Thankfully, there are things you can do to make your car insurance policy more affordable, and one of those ways is by shopping around.
Shopping car insurance policies with the help of an auto insurance comparison tool can help you determine the best car insurance rates in your area. The information in the policies can also help you determine if the coverage is right for your driving habits.
Once you find a policy that meets your budget and your driving needs, you can purchase it directly online.
Start comparison shopping today for more affordable auto insurance rates by entering your ZIP code below!