Medicaid Car Exemption: How Vehicles Are Treated

If you are applying for Medicaid, especially for long-term care, you may wonder whether owning a car will count against you. In most states, one vehicle is exempt from Medicaid’s asset test regardless of its value.

How the car exemption generally works

Most states exempt one vehicle per household, used for transportation, with no value cap. If a household owns a second vehicle, it is usually counted as a non-exempt asset at its fair market value, unless it is specially equipped for a disability or used for employment, which some states exempt separately.

Frequently asked questions

Does the car need to be used for medical appointments?
No, most states exempt one vehicle regardless of its specific use, as long as it is for household transportation.

What if I own two cars?
The second vehicle is typically counted as an asset at its value, which could affect eligibility. Check your state’s specific rules.

This page is general information about Medicaid long-term care planning rules, not legal advice. Rules on exempt assets, transfers, and penalty periods vary by state and change over time — consult your state Medicaid agency or an elder law attorney for your specific situation. If you want help understanding how Medicaid interacts with Medicare, call us at 1-844-552-7426 for a free consultation.