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    Best Car Insurance for Households Earning Less Than $50,000

    Exclusive survey reveals the car insurance companies that deliver the highest satisfaction for lower-income policyholders

    Illustration of a top down view of money, a calculator, a pencil, and a toy-sized car. Illustration: Federico Gastaldi

    Car insurance is a major expense for most drivers, particularly those in households earning under $50,000 annually, where transportation costs can strain already tight budgets.

    In a 2024 national survey of 40,566 auto insurance policyholders by Consumer Reports, we found that the median annual premium for households with under $50,000 in annual income is $1,128. While this is less than the overall median average of $1,452, it is still a significant hit to their budget. 

    To better assist lower-income drivers, we analyzed our survey data to learn more about their behavior and challenges, and then identified the car companies with the highest satisfaction among this group. 

    In this article Arrow link

    Car Insurance and Income

    In CR’s survey, just over one-third (35 percent) of policyholders come from households earning under $50,000 per year. The next income bracket, $50,000 to $100,000, also comprises 35 percent of policyholders. (For context, the U.S. median household income exceeds $80,000, according to the U.S. Census Bureau.)

    Budget constraints often lead drivers from lower‑income households to opt for state‑minimum coverage, in part because of their limited assets. But this strategy can leave them vulnerable in the event of a serious collision involving injuries, property damage, or legal liabilities.

    more on car insurance

    That’s exactly why identifying companies that deliver fair protection and strong customer experience is so essential—especially for this income group. Our data shows that satisfaction often comes from a well‑rounded experience, not just low rates.

    “Auto insurance rates have increased by an average of 40 percent over the last three years, and many drivers are struggling to afford coverage,” said Chuck Bell, financial policy advocate at CR. According to the Federal Insurance Office, he points out, over 16 million drivers across the country make premium payments that exceed 2 percent of their income. "We urge state regulators to investigate the auto insurance affordability crisis and come up with fair solutions to address rising costs.”

    “In the meantime, consumers who are struggling with high premiums may not have a lot of great options,” Bell said. Consumers should shop around to compare quotes from different companies, see which discounts they can qualify for, and consider consulting an independent agent. There are also a handful of states, including California, Hawaii, Maryland, and New Jersey, that offer lower-cost insurance programs that are worth investigating. 

    In most states, insurers use socioeconomic factors such as education, occupation, and credit history for auto insurance pricing, which raises costs even higher for working-class drivers, Bell said. Credit history in particular can have a huge affect on your rates. Before seeking quotes, try to improve your credit score by ordering a copy of your 3 free credit reports from annualcreditreport.com. Inspect them for errors and negative information, and if possible, pay down any delinquent accounts or debts that you find.

    Most Satisfying Car Insurance Companies

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    We investigate, research, and test so you can choose with confidence.


    Jeff S. Bartlett

    Jeff S. Bartlett is the managing editor for the autos team at Consumer Reports. He has been with CR since 2005. Previously, Jeff served as the online editorial director of Motor Trend for 11 years. Throughout his career, Jeff has driven thousands of cars, many on racetracks around the globe. Follow him on X: @JeffSBartlett