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Living on a low or fixed income can pose a few challenges for maintaining your responsibilities as a driver. Having electronic benefit transfer (EBT) is helpful for ensuring you have access to funds from government assistance programs you can use for purchasing food and other necessities. While EBT doesn’t provide cheaper car insurance on its own, it can be beneficial for securing a more affordable policy. Exploring how having EBT can help you during your search for low-cost car insurance helps you save money and stay in compliance with the laws.
Check Your State’s Low-Cost Automobile Insurance Program
In California and a few other states, special programs are available to help people living on low incomes afford auto insurance. You’ll need to meet the eligibility requirements to qualify for these programs, and having EBT is a good sign you’ll fall within the income guidelines. Since there are other requirements in place, it’s important to know you’ll also need to meet additional conditions, such as having a valid state driver’s license and having a good driving record.
When you apply for car insurance, you’ll need to furnish proof of your status as having a low income. In this case, you may be able to use your EBT card to prove you receive benefits from the system. Pay stubs, social security payment statements, and other financial documents may also help you prove eligibility for the program.
Consider Switching to an Older or Cheaper Car
For the California Low Cost Automobile Insurance Program, you’ll need to meet the requirement of having a vehicle valued at no more than $25,000. This requirement ensures people who need affordable insurance are able to get the lowest-cost policy possible. If you don’t meet the income requirements for this program, you may still find that switching to a less valuable vehicle can help you achieve lower rates for your policy. Insurance companies must consider the cost of replacing various parts on vehicles, which can impact their final decisions on the rates. For instance, it will naturally cost more to insure a high-value sports car compared to an older family sedan.
Maintain a Good Driving Record
Even with the low-cost auto insurance program, it’s helpful to know your good driving habits can pay off with lower rates. Ideally, you’ll want to have an established driving history of three years that includes no more than one point for a moving violation and one or fewer at-fault accidents that didn’t involve bodily injuries. If you currently lack a good driving record, it may help to take a driver’s training course to brush up on your skills. While it takes time, you should see your insurance rates go down as your driving record improves.
Ask about Additional Discounts
Today, many insurance companies offer discounts for using mobile apps or devices to track your driving habits. You might also be eligible for a discount for being a low-mileage driver if you rarely use your vehicle or travel far from home. Bundling different policies together could also be an option that helps you save if you also need homeowners or renters insurance. Covering all of your options with your insurance agent helps you save more over time.
When they need affordable, reliable auto insurance, San Diego drivers turn to Altra Insurance Services. For high-quality insurance and unparalleled service, reach out to the experienced agents at Altra Insurance. Call one of our friendly representatives today to learn how you can save money on your auto insurance.