low income auto insurance

Low Income Auto Insurance

In our current economic society, it has become increasingly difficult for people to obtain low income auto insurance. While wages remain fixed for the middle class, the wealthy continue to earn more money. Those in the middle and lower classes are struggling to make ends meet each month. The cost of goods and services has gone up year after year, and it’s hard for many just to pay the bills on time.

Automobile Insurance is Required By Law

Unfortunately, car insurance is required no matter how much or how little money you have. It can be frustrating and tiring to try and deal with an insurance company that you can’t even afford in the first place. And let’s face it – it’s not the most exciting topic to talk about either.

What’s even more unfortunate is that the average person who earns as little as $10,000-$19,000 per year still has to pay as much for car insurance as those who make $200,000 per year or more. There isn’t a great balance between the cost of car insurance versus the annual income of the individual. This is part of what makes it so difficult to find reliable and affordable car insurance.

Insurers Do Not Have Discounted Policies For Lower Income Customers

If you’re struggling with an income that’s below the national average, then you are probably having trouble finding an affordable policy. Most cheap policies like liability only can leave you inadequately covered. Carriers just don’t factor in your income to determine your premiums.

It’s also very frustrating that low income individuals actually pay more in taxes per year than the rich 1% of the nation. While the rich are taxed on their capital gains, poor families are taxed on a flat rate. This means they have to shell out a larger percentage of their income than those who make more money.

If you are earning less than $50,000 per year, your premiums are likely extremely high. However, there is some hope. If you are looking for good auto insurance for a lower price, there are a few steps you can take to save the money you need. Apply online at Trumbull Insurance Company and get direct pricing that can save you hundreds per year.

Get Cheaper Car Insurance By Boosting Your Personal Profile

You can use parts of your financial and social history to your advantage when applying for auto insurance. This includes your credit score, education, area of residence, and your history with other types of coverage. These are sometimes more important than income when it comes to determining your monthly premiums. Let’s take a closer look at each and every factor that goes into determining lower income car insurance.

How Your Income Determines Your Insurance Costs

If you are like most average Americans in this economy, you are likely frustrated that you have to pay more for car insurance than individuals making a whole lot more. This might seem like a form of discrimination and an unfair way to have to pay for required insurance. Unfortunately, there doesn’t seem to be an end to this trend in sight.

Think about the auto loan applications you’ve seen lately. How many questions are about your finances? There are so many different ways that providers try to measure your financial stability, your income, and your ability to pay certain amounts. Most of these financial measurements include:

  • Home status – whether you rent or own
  • Annual income
  • Employment status – are you salaried, hourly, or self-employed?
  • Credit rating
  • Education, including any degrees you’ve earned

When applying for an auto insurance quote, these factors may catch you by surprise. Why are they asking for all of this information? None of them have to do with your ability to drive or even your past driving record. This can seem counterproductive to the cause of getting the cheapest auto insurance. However, these questions are in place for specific reason.

Insurance Carriers Use Complex Algorithms to Determine Rates

Most car insurance providers use advanced algorithms to determine your eligibility, financial status, and type of risk. They also play a major role in the final price you pay for getting insured.  If they think you’re too risky with your money, you may be too risky on the road too. This is why people are paying more for basic insurance nowadays.

A recent study shows that blue collar workers are charged 50% more than white collar workers for the same exact auto insurance coverage. In some parts of the United States, this percentage is even larger. Some families on tight budgets can’t for auto insurance, let alone pay all of their monthly bills on time. If you are in this situation, don’t worry, there are a few things you can do to get yourself lower auto insurance rates.

How to Get Cheaper Auto Insurance Coverage

You can get cheaper auto insurance even if you aren’t making a lot of money. There’s still hope for you, so don’t give up yet! The first thing you need to do is get yourself online and get some quotes. You may discover that the best rates have been under your nose the entire time! With Trumbull Insurance and other free quote sites, you can compare 10 rates in about 5 minutes.

Buy a Direct Policy and Save More

You can also save money by buying a direct policy. This will save you 10% or more on average. In addition, you can apply for discounts that can cut your ins bill even further. While you are not guaranteed to get every available discount, it certainly doesn’t hurt to apply for them. These include:

*Good drivers

  •  Military service people, 
  •  Educators
  •  Seniors
  •  Bundled Auto and Home

Lastly, remember not to add wasteful options to your insurance plan. Renter’s insurance and towing is not completely necessary. Stick with the basics and you can save a lot. You can apply for auto insurance for lower incomes online and save up to 40%. Apply now and get covered for less.

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