What to do if you can't afford insurance
Insurance can feel out of reach when money is tight, but there are real lower-cost and even free options that can help protect you and your family.
Key takeaways
- Check Medicaid first — it may be free or very low cost
- Marketplace subsidies can make health coverage more affordable than you think
- Car insurance quotes from a few companies can lower your bill fast
- Renter's insurance often costs as little as $10 to $20 a month
Not being able to afford insurance is more common than you might think. Millions of people skip coverage every year because the monthly cost feels impossible. But going without insurance can be even more expensive in the long run. The good news is that there are options — and some of them cost very little or nothing at all.
Start by figuring out what type of insurance you need most. Health insurance, car insurance, and renter's insurance are usually the most important for most people. Each has its own set of lower-cost options.
Health Insurance
If you do not have health insurance through a job, check Medicaid first. Medicaid is a free or very low-cost health program run by your state and the federal government. You may qualify if your income is limited. Rules vary by state, so go to HealthCare.gov or call 1-800-318-2596 to check your eligibility.
If you do not qualify for Medicaid, look at the Health Insurance Marketplace at HealthCare.gov. Many people with modest incomes qualify for subsidies — meaning the government helps pay part of your premium. Some people pay as little as a few dollars a month after subsidies.
Community health centers are another option. These clinics charge on a sliding scale based on what you can afford. Some visits cost very little or nothing. Find one near you at findahealthcenter.hrsa.gov.
Car Insurance
In most states, car insurance is required by law. Driving without it can lead to fines, license suspension, or worse. If your current premium feels too high, try these steps.
First, call your insurance company and ask about discounts. Many companies offer lower rates if you take a defensive driving course, pay your full premium upfront, or bundle policies together.
Second, shop around. Getting quotes from three or four different companies takes about 30 minutes and can save you real money. Free comparison websites can help you do this quickly.
Third, drop optional coverages if your car is older. If your car is not worth much, you may be able to skip comprehensive and collision coverage and just carry the minimum liability the law requires.
Some states also have low-income car insurance programs. California, for example, has a program called the California Low Cost Automobile Insurance Program. Check if your state offers something similar.
Renter's Insurance
Renter's insurance protects your belongings if something like a fire or theft happens. It also covers you if someone gets hurt in your home. The cost is often surprisingly low — sometimes $10 to $20 a month. Some insurers let you pay month to month so there is no big upfront cost.
If even that feels like too much right now, look for companies that offer basic plans. Some newer insurance apps have made entry-level policies more affordable and easier to sign up for.
Other Tips That Can Help
Look into government programs for the type of coverage you need. Programs like CHIP (Children's Health Insurance Program) cover kids at low or no cost. Some states have programs for dental and vision care too.
Nonprofit organizations in your area may also help connect you with free or low-cost coverage options. Your local library, United Way, or 211 helpline (just dial 2-1-1) can point you in the right direction.
Do not be embarrassed to ask for help. These programs exist because policymakers know that life can be hard. Using them is smart, not shameful.
Finally, if you truly cannot afford any insurance right now, keep checking back. Your income or life situation may change. And when it does, getting even a basic policy in place is a great step forward.
Taking small steps is still moving forward. Even finding one type of coverage you can manage today is a win.
Related FAQs
Common questions about this topic, answered simply.
How do I find out if I qualify for Medicaid?
You can check your eligibility at HealthCare.gov or by calling 1-800-318-2596. Eligibility is based on your income, household size, and the state you live in. Many people who think they do not qualify actually do, so it is always worth checking.
Is it legal to drive without car insurance?
In almost every state, you are required by law to carry at least a minimum level of car insurance. Driving without it can result in fines, license suspension, or even having your car impounded. If cost is the issue, ask your insurer about lower-cost options or shop around for a cheaper plan.
What is a sliding scale health clinic?
A sliding scale clinic charges you based on what you can afford to pay. If your income is very low, your visit may cost very little or nothing at all. You can find federally funded health centers near you at findahealthcenter.hrsa.gov.
Can my kids get health insurance even if I cannot afford it for myself?
Yes. The Children's Health Insurance Program, called CHIP, provides free or low-cost health coverage to children in families that earn too much for Medicaid but still cannot afford private insurance. You can apply through your state's Medicaid office or at HealthCare.gov.
Is renter's insurance really worth it if money is tight?
Renter's insurance can be worth it even on a tight budget because it protects your belongings and covers you if someone is injured in your home. Basic plans can cost as little as $10 to $20 a month, which is often far less than replacing even one item like a laptop or phone after a theft or fire.
What is the 211 helpline and how can it help me with insurance?
Dialing 2-1-1 connects you to a free, confidential service that can refer you to local resources including health coverage programs, nonprofit assistance, and other support. It is available in most areas of the United States and can be a good starting point when you are not sure where to turn.
Keep reading
Bundling insurance policies: when it saves
Bundling your policies with one insurer usually earns a discount — but it's worth checking that the bundled price really beats buying separately.
Read Insurance basicsHow to save on health insurance
Health insurance is a major expense, but subsidies, the right plan choice, and tax-advantaged accounts can lower what you pay.
Read Insurance basicsHow to lower your homeowners insurance
Homeowners insurance is a big annual bill, so trimming it can free up real money — without leaving your home underprotected.
Read Insurance basicsHow to lower your renters insurance
Renters insurance is already cheap, but a few moves can make it even cheaper while keeping you protected.
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