Car Insurance Under $50 a Month

We’ve all seen online ads that claim monthly car insurance as low as $29 a month. For most people, it just doesn’t pass the “smell test.” The truth is it’s almost impossible to get auto insurance coverage for about 1 dollar a day. However, you might ask, can I qualify for car insurance under $50 a month, or is there such a thing? For some drivers that get minimum coverage, their monthly premiums may be as low as $50 a month. Most people will pay more than $50 a month for coverage. 

Let’s dive into this topic with some necessary data and helpful tips that will give you the best chance to get $50 a month car insurance or very close to it.

Who needs Car Insurance Under $50 a Month?

There are numerous reasons why someone would need auto insurance under $50 a month. Here are just a few.

• They need $50 car insurance to make their budget work.
• Other Fixed Monthly Bills went up, and they needed cheap car insurance no deposit.
• They lost their job and still need minimum coverage at the lowest rate possible.
• They rarely drive and need “bare bones” coverage.
• Someone retired that doesn’t drive much and is on a fixed income.
• A vehicle that is only used on the weekends. 
• Retired people on a fixed income need to reduce their monthly expenses.    
• Someone is moving out of the country for a couple of months and needs the cheapest possible car insurance.

Is $50 Monthly Auto Insurance Even Possible?

This interesting question needs further exploration. Many people are doubtful that $1 dollar a day car insurance is realistic but do hold out some hope that $50 a month auto insurance might be attainable. 

Although the truth is it's hard to get such cheap insurance coverage from 450 a month, the good news is it's realistic if the driver meets specific criteria.

Getting affordable coverage depends on lowering your risk profile a lot. It also depends greatly on where you live, your vehicle type, and your credit score.

Which Insurer Has the Cheapest Liability-Only Coverage Under $50 a Month?

*Note: USAA Insurance is restricted to military service members, vets & their families. 

According to the comparison site, Insurance.com, here are the top 20 cheapest cars to insure in 2022 with full coverage. Due to inflation and other factors, rates increased in 2022, making it more difficult to get $50 monthly car insurance, but you still have a chance in certain states and if you drive specific vehicles.  

Factors that Influence $50 Car Insurance

Here are some factors that will help you get $50 a month auto insurance.

1. Live in a State that has Lower Rates

The average state-by-state auto insurance premiums vary a lot. Michigan might average over $2,800 for an annual, basic collision policy. That same coverage in South Dakota might cost less than half of that. Here are the cheapest states to insure your vehicle. If you live in one of these or are moving to one soon, you are lucky.

• Maine – Annual Rates Average Less than $925 
• New Hampshire – Most Annual Plans are Under $975
• Ohio – Yearly Coverage Averages about $1,000
• Wisconsin – Most Yearly Policies are less than $1,025
• Iowa – Annual Coverage Averages about $1,100

If you don’t live in one of the cheapest states for auto insurance, don’t worry. There are other things you can control to lower your rates. Opting for state minimum liability-only insurance for a car you don’t drive much with a high deductible can push your rates down to $50 per month or close to it. Get a no-obligation free car insurance quote online or over the phone in less than five minutes. Just enter your zip code below to get started.

2. Drive a Car That’s Cheap to Insure

It seems like common sense, but many people don’t realize how much the type of vehicle they drive determines insurance rates. Many people don’t even check insurance rates before falling in love with a car that might be too expensive to insure. 

This often happens with popular sporty vehicles like the Dodge Challenger, Chevy Camaro, or Ford Mustang. Always check the average rates on any automobile you are seriously interested in buying. Doing so will help your chances of getting car insurance under $50 a month. 

Notice that none of the cheapest cars to insure listed in the table above are expensive exotic vehicles like a Jaguar, nor sporty cars like a Corvette. Based on data, insurers have noticed that SUVs are driven more carefully because they often carry children and family members around. They also have fewer fatalities than other vehicle types due to their large size and enhanced safety features like side curtain airbags. For these and several other reasons, they are cheap to insure.

In contrast, some vehicles you would think are cheap to insure are expensive. This includes the Honda Civic and Accord. These cars are expensive to insure because they are frequently stolen. It’s super difficult to get Honda auto insurance coverage under $50 a month, and most drivers will pay more than $100 each month.   

The good news is both the Subaru Outback and Subaru Forester have liability-only rates that average near $50 per month in many states. This includes all drivers, even those drivers with a higher risk profile. 

3. Raise Your Credit Score Above 700

Insurers are placing more weight than ever on a person’s credit when determining premiums. While some think this is discriminatory, the stats show that those with higher credit scores are safer drivers, file fewer claims and commit far less insurance fraud. 

The higher your credit rating is, the lower your premiums will go down. If you have a score in the 500s or 600s, get it above 700 as soon as possible. Check your credit report for any false items and get them removed as quickly as possible. Having a good credit score over 700 will save you 10% or more off your premiums and help increase your chances of getting car insurance for less than $50 per month.

4. Eliminate Unneeded Coverage

Do you drive a vehicle that has depreciated 50% or more and is worth less than $8,000? Is it more than ten years old? If so, you might want to reduce the coverage on it. You could drop expensive coverage like collision and comprehensive coverage and get basic liability insurance. Doing this could help you decrease your rates by 30% or more. This also applies to a second vehicle because you don’t drive much. Remember, you must carry comprehensive coverage in most cases if you finance or lease your car.

5. Raise Your Deductible to $1,000 or More

The truth is that many people need to think about this valuable tip. The higher you set your deductible, the lower your premiums will be. If you have the discipline to save the deductible amount, and you get into an accident and need to file a claim, go as high as you can, like $1,000 or more. If you don’t want to go that high, you can still get a reasonable rate with a $500 deductible.

6. Stay Accident and Ticket Free

One of the best ways to get cheap auto insurance is to be a safe driver. This means having a clean driving record and not having any at-fault accidents on your record. If you get a ticket, go to driving school, so it stays off your record. If that’s not possible, pay for your ticket immediately and don’t get another one. Enter your ZIP code below and compare shops with up to 10 quotes. Find top-rated insurers with 50 dollar car insurance rates.

7. Keep your Teenager and any Driver Under 25 off your Policy

Teen drivers can cause their parents’ auto insurance premiums to skyrocket. Young drivers under twenty are the most dangerous drivers on the road. If you add a driver under 25 to your policy, your rates will likely double or increase even more.

Young motorists take extreme risks like reckless driving and sending text messages while driving. Accidents for younger motorists have gone up in recent years, and insurers have increased rates for this demographic.

Show some tough love if you have a teenager who needs coverage and can’t afford it. They can either get their own policy, get rides with friends, or hop in an Uber to get around. Adding a teen onto your policy will make getting 50 a month car insurance impossible.

8. Get Every Discount You Possibly Can

Qualifying for several discounts can help you get auto insurance coverage for $50 a month. These are a few that can save you the most.

• Safe Driver Discount
• Low Mileage Discounts
• Senior Citizen Discounts
• Bundling Auto and Home Insurance
• Multi-Vehicle Discount
• Defensive Driver Discount
• Military Discount 
• Safety Features Discounts – This includes airbags, anti-lock brakes, and GPS Based Security Systems 
• Loyalty Discount – for those customers that renew their policy
• Good Student Discount (GPA of 3.0 or higher) 
• Paying the Full Premium in Advance 
• Garage Parking Discount

9. Maintain Continuous Coverage

Did you know if you cancel your auto insurance and don’t get a new policy for an extended period, it can cause your rates to go up when you get new insurance? This is why continuous coverage can help you get the cheapest auto insurance possible.

10. Shop Around for the Best Rates and Plans

If you need $50 a month car insurance, you need to invest some time comparing quotes—review ten or more quotes from local, regional, and national insurers.

Get online quotes from direct providers as well as quotes from agents and brokers. The more quotes you review will help increase your chances of getting auto insurance under $50 a month.

Now that you’ve learned valuable tips on getting $50 monthly car insurance, it’s time to compare online rates. Get quality coverage at the best rates that fit your budget. It only takes about five minutes to apply for your free quotes, and you can even use your smartphone. Get started now by entering your zip code and filling out a quick application.