SSI Car Value Limits: Can You Own a Car and Get SSI?
If you receive Supplemental Security Income (SSI) or plan to apply, you may wonder how owning a vehicle affects your benefits. Transportation is often essential for medical appointments, work, and daily life. However, SSI has strict resource limits, which makes questions about car ownership especially concerning.
The short answer is yes, you can own a car on SSI, but certain resource rules apply. There are value limits for many things when you’re applying for benefits, and cars are not excluded.
Owning a Car While On SSI
SSI allows you to own one vehicle without counting it as a resource, as long as it’s used for transportation by you or someone in your household. This means owning a car will not automatically disqualify you from receiving SSI.
The Social Security Administration (SSA) generally excludes one vehicle of any value from your counted resources if it’s used for:
- Personal transportation
- Medical appointments
- Work or school
- Essential daily needs
Does the Car’s Price Matter?
When it comes to your primary vehicle, there is no car value limit. The SSA does not cap the value of the one excluded vehicle. That means:
- You can own a new car on SSI
- You can own an expensive car on SSI
- The purchase price does not matter
However, this exclusion applies to only one car. Owning multiple cars may affect your SSI eligibility.
Can You Own 2 Cars on SSI?
This is where things become more complicated. If you own two vehicles, the SSA will likely count the second car as a resource. The value of the second vehicle, usually its equity value, can count toward resource limits.
SSI countable resource limits are:
- $2,000 for an individual
- $3,000 for a couple
If the value of the second car pushes you over these limits, you may not be able to receive benefits. No standard separate exclusion exists for a second car, but conditional benefits may apply while selling excess resources like an extra vehicle. In limited situations, a second vehicle may be excluded from resources, but these cases are rare and evaluated individually.
Do I Have To Report Buying a Car to SSI?
Yes, you must report buying a car if you’re receiving SSI, even if it’s excluded as a resource. The SSA requires SSI recipients to report:
- Purchasing a vehicle
- Selling or trading in a vehicle
- Receiving a car as a gift
- Changes in vehicle ownership
The SSA needs to quickly assess if any such changes put you over the resource limit. Failing to report a purchase or other change could lead to overpayments, penalties, or problems with your benefits later. It’s best to report changes promptly so the SSA can determine whether a vehicle affects your eligibility.
Can You Buy a New Car While On SSI?
Yes, you can buy and own a new car on SSI, but how you pay for it matters. The vehicle itself may be excluded, but cash you hold before buying the car may temporarily count as a resource. Timing and documentation are critical to ensure a purchase doesn’t affect your SSI eligibility.
Because large purchases can raise red flags, it’s wise to speak with a disability attorney before making the purchase.
Why Vehicle Rules Matter for SSI
Vehicle ownership is one of the most common issues that affects SSI eligibility. A misunderstanding about car ownership, reporting requirements, or resource limits can cause:
- Benefit interruptions
- Overpayment notices
- Loss of SSI eligibility
If you have questions about owning a car while on SSI, buying a vehicle, or how resources affect your benefits, speaking with an experienced disability lawyer can help you avoid costly mistakes.
Protect Your Eligibility for SSI Benefits
Drozdowski & Rabin, PLLC, helps individuals throughout Tennessee understand SSA rules and qualify for SSI. If you’re unsure how a car purchase could affect your eligibility, contact our office to schedule a free consultation to discuss your claim. Our disability lawyers in Knoxville, TN, have years of experience and are here to help you seek benefits and make sure you don’t go over strict asset limits.
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