I Can’t Afford Car Insurance Anymore – What Should I Do?

Last Updated on February 5, 2026

Car insurance can be painfully expensive—especially if you’re already stretched thin. In some places, even basic liability car insurance can feel out of reach. And if you’ve had tickets, accidents, lapses in coverage, or other risk factors, you can get stuck with higher monthly insurance premiums.

If you’re thinking, “I can’t afford car insurance anymore,” you’re not alone. The key is to stay legal, avoid a coverage lapse (which can make insurance even more expensive), and cut costs strategically. Here’s what to do.

• Don’t drive uninsured—penalties and coverage lapses can make insurance far more expensive long-term.
• Start with the cheapest legal option: minimum liability coverage, then adjust deductibles and remove add-ons you don’t use.
• Ask about discounts (telematics, low-mileage, bundling, autopay) and make sure your rating details are accurate.
• Shop multiple insurers—pricing varies widely, especially for drivers with tickets, accidents, or other high-risk factors.

1) If You Can’t Afford Insurance, Don’t Drive Uninsured

In almost every state, driving without insurance is illegal and can lead to fines, license suspension, registration suspension, towing, and even SR-22 requirements—making future insurance more expensive. If you’re about to lose coverage, prioritize keeping some legal coverage in force.

Even if your state has unusual rules, it’s still financially dangerous to drive without coverage. The safest, simplest baseline: keep at least the coverage your state requires so you don’t turn a tight budget into a long-term money problem.

If you’re stuck without coverage right now, park the car and use alternatives temporarily (public transit, rideshare, carpooling, biking, walking). A good starting point for finding public transit resources is the U.S. Department of Transportation’s public transit page: https://www.transportation.gov/public-transit.

Related: It’s smart to understand whether auto insurance is required in your situation and how long you can go without car insurance before consequences kick in.

2) Try to Prevent a Lapse Before It Happens

A lapse in coverage can cause your rates to jump—sometimes for years. If you’re behind on payments or about to cancel, take 10 minutes to call your insurer and ask about “keep me covered” options like:

• Switching to a cheaper plan (liability-only, lower limits, removing add-ons you don’t need)
• Changing your payment plan (monthly vs. pay-in-full, different due date, or a hardship/payment arrangement if available)
• Re-rating your policy (correct mileage, updated address/garaging location, updated job title, updated drivers)
• Applying discounts you might be missing (see below)

Even if you plan to switch companies, keeping coverage active while you shop can save you money long-term.

3) Choose the Cheapest Legal Coverage First

Choose Basic Liability Coverage

If car insurance is too expensive, make sure you’re not automatically shopping for more coverage than you need. Many drivers price out full-coverage car insurance plans when they really need to start with basic liability.

Liability insurance pays for injuries and property damage you cause to others. It does not pay to repair your own vehicle. Full coverage adds comprehensive coverage and collision coverage—which helps protect your car against theft, vandalism, storm damage, and crashes.

If you’re on a tight budget and your car is paid off (no loan/lease), you may be able to drop collision and comprehensive coverage to reduce your premium. (If you have a loan or lease, your lender usually requires collision and comprehensive.)

Raise Your Deductible (If You Still Carry Full Coverage)

Your deductible is what you pay out of pocket when you file certain claims. Common deductibles range from a few hundred dollars to $2,000 (or more). A higher deductible usually means a lower premium—but only choose a deductible you can realistically pay if your car gets damaged.

If you keep full coverage, ask your insurer about raising your deductible to lower your monthly bill.

Drop Costly Add-Ons You Don’t Use

Optional coverages can add up fast. If money is tight, review extras like rental reimbursement, roadside assistance, custom equipment coverage, and low deductibles. Keep what you truly need—cut what you don’t.

4) Use Every Discount You Qualify For

Discounts vary by insurer, but these are some of the most common money-savers that people miss:

• Usage-based/telematics discounts (safe driving tracking via an app or device)
• Low-mileage discounts (especially if you work from home or drive less than you used to)
• Bundle discounts (renters/home + auto)
• Pay-in-full or autopay discounts
• Good student discounts (for teen/college drivers)
• Defensive driving/driver training (sometimes helps seniors or drivers with tickets)

Also ask your insurer to double-check your profile details (annual mileage, garaging address, commute vs. pleasure use, employer/occupation category). Small rating details can make a surprising difference.

5) Shop Around (Yes, Even If You’ve Been Loyal)

Different insurers price risk differently. One company might punish you harshly for a single at-fault accident, while another is more forgiving. If your rate jumped and you can’t afford it, don’t assume you’re “stuck”—get quotes elsewhere.

Start by comparing quotes from local providers. And if you have a violation, it’s worth learning how things like a single speeding ticket can impact pricing so you know what to expect.

To get a general idea of how prices can differ by company and driver profile, see the table below. Use it as a starting point—your actual quote will depend heavily on your location, vehicle, driving history, mileage, and coverage choices.

6) If You’re High-Risk, Use “Plan B” Options

If you have a bad driving history, you may need to get creative while you work your way back to affordable rates. Here are options that sometimes help:

• Drive a cheaper, older vehicle: It may be easier to justify liability-only coverage, and you won’t be paying to insure an expensive replacement cost.
• List the vehicle correctly within your household: If you live with family/roommates, it may be cheaper to be rated on one household policy. Just be honest—“fronting” (misstating who drives most) can lead to denied claims.
• Look into low-income options: Some states have special programs and other alternatives. Start with low-cost car insurance plans and state-by-state resources.

FAQs on Not Being Able to Afford Car Insurance

Final Word: What If I Can’t Afford Car Insurance?

If you can’t afford auto insurance and your policy is about to lapse, your priority should be to avoid driving uninsured and to avoid a lapse that can make insurance even more expensive down the road.

The fastest ways to lower your bill are usually: switch to minimum coverage (if appropriate), drop collision and comprehensive on older paid-off cars, raise your deductible, apply every discount you qualify for, and shop multiple insurers.

If you need coverage immediately while you shop around, you can often get auto insurance online in minutes. And if you’re driving an older vehicle, choosing liability-only coverage can sometimes save hundreds per year compared to full coverage.