Low-Income Car Insurance in Texas

Unfortunately, as mentioned above, Texas doesn’t provide state-sponsored car insurance for low-income drivers specifically, as some other states do. Instead, you’ll have to find Texas car insurance in the private marketplace. In the next section, we’ll provide the cheapest options available so you have an easier time with your search.

Check out the cheapest car insurance in Texas for a number of situations and demographics. All prices are for the average annual cost of car insurance. The cheapest car insurance company for you may be different once your demographics and other information are factored in, as insurance is never one-size-fits-all.

Families

• Commonwealth Casualty: $612

Age

Military

• USAA: $424

Bad Credit

• Clearcover: $612

Married Drivers

• Commonwealth Casualty: $612

Full Coverage

• Farmers: $821

The best auto insurance in Texas for low-income drivers includes companies like the following:

• Commonwealth Casualty
• Farmers
• GEICO
• State Farm
• Texas Farm Bureau
• USAA (active-duty military members, veterans, and their families only)

Requirements in Texas for car insurance are as follows:

• $30,000 for bodily injury liability coverage per person
• $60,000 for bodily injury liability coverage per accident
• $25,000 for property damage liability coverage per accident³

Minimum coverage, which in Texas is only liability insurance, will have the most affordable car insurance rates, but remember that liability coverage pays for injuries and property damages outside of your vehicle only. If you cause an accident, you’ll be responsible for your property damage and the injuries to passengers inside your vehicle out of pocket.

Full coverage car insurance, on the other hand, will mean higher car insurance costs, but it could save you money in the long run if you have any claims.

Thinking of not getting car insurance? Think again. Driving without insurance in Texas is a misdemeanor that could result in fines, vehicle impoundment, a license and registration suspension, and an SR-22 requirement (a form that proves you have minimum coverage).

All in all, you might end up paying more for driving without insurance than you would for an insurance policy. Perhaps that’s why Texas’ rate of uninsured motorists is so much lower than the U.S. population — only 8 percent compared to a 12 percent national average.⁴

Aside from getting minimum coverage car insurance, here are some other ways to get cheap car insurance in Texas regardless of your income level:

1. Raise your collision and comprehensive deductibles.
2. Lower your limits.
3. Drop coverages you don’t need, like rental car reimbursement and roadside assistance.
4. Ask your insurance agent for car insurance discounts.
5. Enroll in usage-based insurance that bases rates on your driving behaviors and average annual mileage.
6. Take a defensive driving course or driver safety course. You can get a ticket dismissed by taking a six-hour driving safety course and sending the certificate of completion to your insurance provider and the court.⁵
7. Improve your credit score.
8. Bundle multiple insurance policies, like home and auto insurance, under the same provider.
9. If you have a high school or college student with good grades in your family, see if your insurance company offers a discount for that.
10. If you’re thinking of buying a new car, make sure it has high safety ratings with the Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration. Car insurance companies give lower rates to cars that perform better in accidents, as well as cars with features like anti-theft devices. Also, look for a car with low repair costs, as costly repairs increase the cost of auto insurance.
11. Get a hybrid or electric vehicle, as many insurers offer discounts for these environmentally friendly cars.

Insurance companies in Texas base prices on the following factors.

• Credit score
• Marital status
• Sex
• ZIP code
• Vehicle make, model, and type
• Age
• Driving history, including at-fault accidents, speeding tickets, and DUIs
• Lapses in coverage

The following Texas cities have the lowest costs for car insurance, on average.

In contrast, you’re more likely to face the highest rates in cities like Dayton, Amarillo, Houston, Corpus Christi, Frisco, Dallas, and Fort Worth.

Registering a car in Texas requires car insurance, so it’s not optional. If you’re having trouble finding a company offering rates you can afford, call AutoInsurance.com. We can shop multiple providers at once and match you with an insurer that wants you as a customer at a cost you can afford.

In the meantime, take advantage of discounts to get the lowest rates from the best low-income auto insurance companies.