Medicaid Car Insurance

While there’s no Medicaid car insurance plan, Medicaid can cover accident-related medical treatments. Some states also offer low-income car insurance plans for people who qualify for Medicaid and other assistance programs.

In this article, we’ll review car insurance options for families that receive Medicaid benefits and offer suggestions for reducing policy premiums. We’ve reviewed the best car insurance companies in the industry and will recommend some of our top picks, as well.

Key Points:

• Medicaid can cover your medical bills after an accident, but there’s no Medicaid car insurance plan.
• California, Hawaii, and New Jersey have programs that can help low-income drivers get car insurance.
• Car insurance costs vary widely between companies and it’s worth comparing free quotes periodically to get a cheaper rate.

Can You Get Medicaid Car Insurance?

There’s no such thing as Medicaid car insurance. However, Medicaid can cover your hospital bills should you get into an automobile accident, as well as medical alert systems at home if you need them after. If you’re at fault for the accident, Medicaid will pay for your hospital fees but not the fees for anyone else.

Medicaid will not cover any damages to your vehicle, nor will it act as liability insurance. Having Medicaid doesn’t make your car legally insured.

If you’re not at fault, Medicaid can provide your medical coverage. However, if there’s an insurance settlement and you’re awarded damages, you’ll need to reimburse the state with that money.

In a no-fault insurance state, you’re required to pay for your own expenses regardless of who’s at fault. In such cases, Medicaid should also cover your hospital bills.

Car Insurance Vs. Medicaid

Minimum insurance requirements are different in every state. With the exception of Virginia and New Hampshire, every state requires some amount of liability coverage, and other standard types of auto insurance are available for things like covering your vehicle after a car accident.

The standard auto insurance coverage options include:

• Liability coverage (BI/PD): Pays for repairs to the other driver’s vehicle if you’re found at fault for an accident
• Collision coverage: Covers repairs to your vehicle after an accident regardless of who’s at fault
• Comprehensive coverage: Covers repairs to your vehicle that are the result of a non-collision event such as vandalism, theft, or an act of nature
• Medical payments (MedPay): Covers medical expenses for you and your passengers
• Personal injury protection (PIP): Covers medical expenses, lost wages, and death benefits
• Uninsured/underinsured motorist coverage (UM/UIM): Covers you and your vehicle after an accident if the at-fault driver is uninsured or underinsured

Medicaid car insurance would most closely resemble a MedPay policy. However, the two are not the same. Medicaid would only cover you and doesn’t extend to any passengers in your vehicle.

While minimum car insurance requirements only mandate liability coverage in some states, it’s usually a good idea to seek full coverage if you can afford it.

Full-coverage auto insurance means adding collision and comprehensive coverage to your car insurance policy. Without full coverage, you could be left with a damaged vehicle and no means to repair it.

Medicaid Car Insurance Alternatives

Owning a car is a necessity in most of the United States. In places with little or poor public transportation infrastructure, a car is often necessary to earn income. Those that need government assistance such as Medicaid might have a tough time affording insurance premiums.

While there’s no Medicaid car insurance, three states do offer special insurance programs for low-income families: New Jersey, California, and Hawaii.

New Jersey Special Automobile Insurance Policy (SAIP)

New Jersey’s Special Automobile Insurance Program (SAIP) is the closest thing to a Medicaid car insurance program. An SAIP policy, also known as dollar-a-day car insurance, is available to residents of New Jersey with a valid New Jersey license who are enrolled in federal Medicaid. Here are the details.

It’s important to note that the SAIP program doesn’t meet the minimum insurance requirements for the state of New Jersey. It doesn’t provide liability coverage and acts mostly as an extension of the health insurance benefits you receive under Medicaid in the event of an auto accident. New Jersey requires bodily injury liability and property damage liability, and SAIP doesn’t provide these.

SAIP only covers emergency medical care immediately following an accident. So, if you have whiplash and see a doctor three weeks later, SAIP won’t apply. It does cover up to $250,000 for serious brain and spinal cord injuries, though.

California Low-Cost Auto Insurance Program (CLCA)

California doesn’t have Medicaid car insurance, but it does offer a special insurance program for low-income residents. It’s called the California Low-Cost Auto Insurance Program, or CLCA for short. Here are the details.

Aspect	Details
Enrollment eligibility	Must possess a valid California driver’s license, own a vehicle valued at $25,000 or less, be at least 16 years of age, have a good driving record, have below the maximum income requirements based on household size: 1 person: $36,450 2 people: $49,300 3 people: $62,150 4 people: $75,000 5 people: $87,850
Coverage	Up to $10,000 per person in case of bodily injury or death Up to $20,000 per accident in case of bodily injury or death Up to $3,000 for property damage
Optional coverage	$10,000 uninsured motorist coverage per person $20,000 uninsured motorist coverage per accident $1,000 medical payments coverage per person

One major difference between SAIP and CLCA is that CLCA is a complete insurance program. In other words, the basic coverage provided by CLCA does meet the state of California’s minimum coverage requirements.

Supplemental Security Income (SSI) Insurance In Hawaii

Supplemental Security Income is a federal program that provides aid for disabled citizens and people over 65 years old.

In the state of Hawaii, depending on where exactly you live, people who receive SSI may also be eligible for state-provided motor vehicle insurance.

If you’re a Hawaii resident, contact your local county health or human services office to find out if state-provided auto insurance is available to you.

Insurance Tips For Medicaid Drivers

Finding cheap auto insurance can be difficult, and it can be even harder to meet coverage requirements when you’re living month-to-month.

Your credit score and neighborhood are commonly used to determine premiums, and these rarely work in the favor of people who already lack financial resources.

As a major expense, it makes sense to look for options like Medicaid car insurance. Unfortunately, Medicaid car insurance programs don’t exist.

Below are a few tips for finding cheap car insurance if you’re on Medicaid.

1. Drive As Little As Possible

Most auto insurance providers offer low-mileage discounts or can calculate your car insurance rates with your annual mileage in mind. If you don’t drive your car often, you may be eligible for such benefits. Driving your car less will also reduce wear and tear and save on fuel costs.

Of course, this may not be possible depending on where you live and how far your job is from your home. Luckily, low-mileage drivers are guaranteed to save money on their car insurance rates in California.

2. Take A Defensive Driving Class

Ask your auto insurance provider if you can receive a premium discount for completing a defensive driving class. These classes usually cost between $20 and $40 depending on your state but are generally worth it as you can save more than that in a single payment period.

There are online defensive driving options available as well if you can’t afford to attend what is sometimes a six-hour lecture. Online classes usually let you take the course in parts at your own pace.

If you’re taking an online defensive driving class, make sure your class is approved by your car insurance company beforehand.

3. Pick A Higher Deductible

Policies with a higher car insurance deductible generally come with a lower premium. This is a risky option, however. If your deductible is too high, you may not be able to afford to fix your car in the event of an accident, even if you have insurance. Make sure you can afford your deductible should the worse happen.

4. Work With An Insurance Agency

Auto insurance agencies work with customers to find the best policy options for their budgets. Sometimes these agencies have access to special discounts not available to drivers.

Consider contacting an agency to help you find the best local providers for your needs, but do your own research to make sure you’re getting the best deal.

5. Look For Discounts

Most providers offer discounts and premium reduction programs. Ask your provider to learn what discounts are available. Common discounts offered by companies like USAA, Geico, and Progressive include:

• Multi-policy discounts
• Multi-car discounts
• Safe driving discounts
• Good student discounts
• Discounts for cars with safety features such as anti-lock brakes and airbags

Medicaid Car Insurance: Conclusion

While Medicaid (or Medicare) car insurance doesn’t exist, drivers in California, Hawaii, and New Jersey have some options for car insurance assistance. If you live elsewhere, focus on lowing your insurance costs with the tips above or by comparing rates from different providers.

Our Recommendations for Car Insurance

Finding low-cost car insurance can be difficult, especially for low-income families. The best thing you can do to get cheap car insurance is to shop around and compare car insurance quotes. Not all providers weigh every metric equally, so find an auto insurance policy that matches your needs.

There are a lot of auto insurance companies that offer low-price insurance, but which don’t reliably pay claims. Some providers have coverage details that make them just short of an outright scam. Make sure that you deal with a reputable provider by comparing reviews and industry reputation.

Here are two reputable choices for cheap car insurance:

Progressive: Best Usage-Based Insurance

Progressive was founded in 1937 and originally specialized in insurance for risky drivers. It has since grown to be one of the largest, most well-known providers in the United States.

We rate Progressive car insurance at 4.3 stars out of 5.0. It is a good option for high-risk drivers and also offers a great usage-based program called Snapshot^® that can help safe drivers save money. You can save a good amount with Snapshot by avoiding risky driving and also driving below-average miles.

Progressive’s Name Your Price^® tool lets you start shopping for auto insurance by entering the price you want to pay. Progressive will then find a set of policies, limits, and deductibles that meet the amount you can afford.

Geico: Best For Discounts

Geico’s advertising campaign has made it one of the most well-known providers on the market. But a British Gecko isn’t the only thing for which the company is known. Geico reliably offers some of the lowest premiums, and we rate Geico auto insurance at 4.6 stars out of 5.0.

Geico’s affordable premiums and easy claims filing process make the insurer easy to recommend. The Geico mobile app makes claims filing simple, and service response times are quick. Geico’s AM Best financial strength rating is A++, indicating a superior ability to meet financial obligations.

With a range of policy discounts like the safe driving discount and good student discount, Geico is a great place to start when comparing auto insurance quotes.

Medicaid Car Insurance: FAQ

Below are a few frequently asked questions about Medicaid car insurance.

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

• Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.

• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.

*Data accurate at time of publication.