Does Medicaid Cover Car Insurance?
Here’s an interesting question that hundreds of people have been asking about recently. Why are so many people wondering “does Medicaid cover car insurance?” It probably has something to do with the current state of affairs, money is tight for a lot of people, bills are stacking up, and they’re trying to find any way they can to save some money and to get by.
Does that sound familiar at all? It’s understandable, when times get difficult, people will try to think of new and different ways to get by. So, let’s get right to it, can you get Medicaid coverage that will also help out with your car insurance? And what are the other options?
Owning a car can be expensive, but for many individuals and families, it’s a necessary expense due to lack of public transportation, or it’s simply a luxury that’s very worthwhile to have, even when public transportation exists. Cars are expensive. You’ve got to pay for gas, repairs, monthly financing payments, not to mention insurance on top of everything else.
Medicaid for Car Insurance?
Having Medicaid does not count as any type of car insurance. Medicaid won’t make your uninsured car legal to drive. You need separate car insurance, full stop. Let’s clear that up right out of the gates. We’re not really sure where the idea comes from that Medicaid will act as a replacement or an alternative for private car insurance, but that’s just not the case. Medicaid isn’t car insurance, Medicaid doesn’t offer any car insurance, Medicaid can’t replace the need for car insurance.
Medicaid is a health insurance program that’s funded on both the federal and the state level that offers coverage to roughly 70 million Americans who need health coverage. Perhaps some of the confusion arises from the fact that if you have Medicaid, and you’re in a car accident, Medicaid can help with your medical bills. That’s not the same as having car insurance, though, because Medicaid absolutely will not cover any of the damage to your vehicle, the other driver’s vehicle, or any other forms of property. That’s just not what Medicaid is for. If you have Medicaid coverage, you are covered for certain types of Medical issues that could arise from an accident, but you still need car insurance to cover the physical property damage.
But if you have Medicaid and you are on a tight budget, but you still want to do whatever you can to continue being able to afford your vehicle (It really helps for things like getting groceries, avoiding public transportation when it’s not an ideal time to be in groups of people, getting to work, a lot more opportunities for employment, etc), you have options. You can look at more affordable types of car insurance, you can figure out how much car insurance you really need, and you can shop around for the best deals.
Types of Car Insurance (Remember, NOT Medicaid!)
Once again, for anyone who is just skipping, there is no Medicaid car insurance. It’s a misconception that people are having lately that you can somehow use Medicaid instead of car insurance. This isn’t the case. You need both. Anyways, despite that, here’s a quick rundown of the different types of car insurance that do exist, and what they’re for.
Collision insurance: This type of insurance is used to pay the costs associated with damage to your car or other vehicle in the event of a traffic accident. It doesn’t matter who is at-fault for the accident, whether it’s you or it’s the other driver, but it’s still possible that the other driver won’t have proper insurance or will be under-insured for the damage they cause if they are at fault.
Liability insurance: If the insurance company determines that you are at fault for an accident, liability insurance will cover the costs of damage that is caused to the vehicle of the other driver(s) involved in the crash.
Comprehensive insurance: If something happens to your vehicle outside of a collision, for example if someone keys your car or slashes your tires or smashes a window or some other type of vandalism, this is what comprehensive insurance is meant for. Comprehensive insurance will also cover things like theft, hail damage and other types of damage that can be caused by nature.
Uninsured motorist insurance: If you’re in an accident with someone who is being irresponsible and driving around uninsured, and they are at fault, they won’t have an insurance company to pay you the damages. This can be very serious, especially in the event of an accident that ends up costing you more than just some damages to your vehicle. You could be left unable to work, injured with a lot of medical bills, etc. If they don’t have insurance, how are you going to be compensated? Well, this is how. It’s an extra type of insurance that you can purchase, to protect you from the event that you’re in an accident with someone else who is uninsured, or who didn’t decide to buy a good enough auto insurance plan to actually cover the extent of their damages. It’s unfortunate that you should have to pay extra to protect yourself from people who aren’t even doing the bare minimum, but it is what it is.
Ways To Save Money on Car Insurance
One of the best ways to save money with auto insurance is to ensure that you’re adequately covered for any of the most likely events that could occur. It may cost a little more each month, but it could also save you from financial ruin. On the other hand, being “over-insured” is
The perfect amount of auto insurance is kind of like Goldylocks and the Three Bears. You can be over-insured, you can be under-insured, or you can be insured just right. We’re here to help you find just the right amount of coverage to fit your budget, and to ensure that you aren’t stuck holding the bag in the event that some of the worst-case-scenarios actually come to fruition.
You can start with car insurance for $19, and work your way up based on your needs. If you have an older car, you can get away with less expensive coverage since there’s a tipping point where insurance is no longer worthwhile if you’re paying so much for the insurance on something with a relatively low replacement cost.
In any case, we just wanted to clear up those misconceptions about Medicaid covering car insurance. The answer to the question “does Medicaid cover car insurance?” is “NO!” But that’s okay, there are other ways to save money on car insurance without having to jump through a ton of hoops and without having to risk your family’s financial future each time you turn the key and start the ignition.
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