Minimum Wage, Maximum Car Insurance Pain
If you earn the minimum wage, chances are you've bought the cheapest car insurance you could find.
Depending on where you live, just enough liability insurance to be legal can cost anywhere from $342 to $1,544. At $7.25 an hour, that is at least a week's pay -- and in some places, more than a month's pay.
Minimum-wage workers tend to be young. Half of them are under 25, according to the U.S. Department of Labor. We priced basic state-minimum auto insurance quotes from coast to coast for a 24-year-old male with no tickets and good credit. We put him behind the wheel of a 1997 Ford Taurus worth perhaps $2,500.
Yet even this vehicle -- or any similar no-frills ride-- represents a huge expense for the 4 million or so Americans working a minimum-wage job.In Springfield, Ill., he would have to work 55 hours at that state's $8.25 minimum wage to pay a year's worth of the state's minimum liability coverage on his beater car. In Denver, 97 hours. And in Albany, N.Y., Trenton, N.J., or Hartford, Conn., he would have to work more than a month of minimum-wage hours to buy the lowest amount of car insurance required. CarInsurance.com looked at bare-minimum policies for a young driver in each state's capital. Unless you're 24, male, a resident of the particular addresses we used and proud owner of a 1997 Taurus, your quotes probably won't match ours, which are only a snapshot of the rates available through our quote-comparison engine. They are, however, a good indicator of the financial hurdle confronting any young driver who depends on his own car to commute to school or work. What a 24-year-old pays for state-minimum liability
|State||State minimum||Annual cost||Minimum wage||Hours|
|District of Columbia||25/50/10||$1,422||$8.25||172|
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