Low Income Car Insurance in Florida
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It’s no secret that Florida has higher cost car insurance than many states. There are a number of reasons for this, from severe weather risks to costly health care, but the fact is that car insurance is pricey in the Sunshine State. The good news is that it’s possible to find low income car insurance in Florida, to make sure you get the coverage you need without breaking the bank.
Read on to find out what low income car insurance is, how to qualify, and what it means for your wallet.
Although there’s no actual low income car insurance product, it refers instead to the most cost-effective car insurance you can find on a lower income. The lower price comes at a cost: it typically includes the bare minimum of auto insurance (usually the minimum required by law), and nothing else.
Some states offer programs to help those on low incomes pay for car insurance, including California and Hawaii. Unfortunately, Florida doesn’t offer any state-funded assistance, but that doesn’t mean you’re out of luck: keep reading for ways to save on car insurance in the Alligator State.
Let’s quickly clarify: your income doesn’t directly impact your car insurance rates. Instead, your rates are based on a variety of factors, including:
You won’t necessarily pay more or less if your income is low, but any of the above factors could flag you as a risk to insurers, causing your rates to hike. But knowing that you classify as low income could prompt you to find more affordable car insurance, because life is expensive enough, are we right?
In Florida, there’s no standard definition of low income. Guidelines can be set locally by authorities or programs, such as for housing or health care. And since there are no state programs for low income car insurance, there are no official definitions of low income for car insurance purposes.
Federally, the poverty line for a one-person household is at $15,650, and $32,150 for a four-person household. This number isn’t adjusted by state (except for Alaska and Hawaii), but since living costs in Florida are similar to the national average, these numbers can help you give you a better idea if you’re considered low income.
One simple way to save on car insurance is to reduce your coverage. This does come with risks, as it leaves you more financially vulnerable should an accident occur, but eliminating unnecessary coverage is a good way to save on premiums.
There’s only so much you can reduce though: in Florida, you must have at least $10,000 in personal injury protection (PIP) and at least $10,000 in property damage liability. Keep in mind, the driver at fault for the accident is responsible for property damage, but both drivers are each responsible for their own medical costs, regardless of who is at fault.
It’s also important to note that these minimum requirements in Florida are only the bare minimum by law. Any costs above these resulting from an accident will be yours to pay out of pocket, so it can make sense to have more than the minimum amount of insurance for peace of mind.
Because there’s no standardized low income car insurance in the state of Florida, your best bet is going to be the lowest cost insurance you can find for your coverage needs. For many, that might be choosing the minimum amount of coverage and no more.
For reference, the average cost of minimum car insurance in Florida hovers around $1,056 annually, but your actual costs will depend on many factors. For reference, full coverage car insurance will run you closer to $4,000 per year. These numbers aren’t set in stone: actual costs can vary widely county to county, and your personal details can sway them even more.
Although there are no state funded programs for low income car insurance in Florida, that doesn’t mean you’re stuck paying high rates. Whether you drop your coverage or leverage our tips and tricks for saving on car insurance costs, there’s always ways to make car insurance a little easier on the wallet. Before we hit the road, remember that the best thing you can do is understand your options, and that starts by comparing quotes.
Lauren Lewthwaite Lauren Lewthwaite has been freelance writing for almost five years writing content that ranges from health to insurance and everything in between. Lauren is also a trained translator in French and English and is a dog-mom to an adorable Australian Shepherd.
