Best Cheap Car Insurance Companies for High-Risk Drivers in Texas
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By, Content Director
Auto insurance costs for high-risk drivers in Texas are usually higher than insurance for low-risk drivers. But don't let that get you down. Shopping around and comparing insurers is the best way to save.
State Farm has the highest rating (92 out of 100) and is, therefore, the best option for high-risk drivers in Texas. It costs an average of $1,155 a year and has several perks that make it beat the competition, even if our second-place choice is slightly cheaper.
Farmers is another excellent choice receiving a score of 91 out of 100. It offers the most affordable coverage, costing an average of $1,122 annually.
Best Companies for High-Risk Drivers in 2023
Texas drivers with a bad driving record — at-fault accidents, speeding tickets, DUI convictions and other traffic violations — should expect to pay about 28% more for car insurance 28% than a driver with a clean record.
Auto insurance for bad drivers costs around $1,509 per year. In contrast, those with clean driving records average around $1,081 annually.
Getting caught driving under the influence of alcohol or drugs is one example of high-risk driving. You could also be considered a high-risk driver if you're a teen or have been driving an uninsured vehicle. Below are some more examples of drivers that belong in the high-risk category.
- Drivers with a history of traffic violations or at-fault accidents
- Drivers with a DUI conviction
- Drivers caught driving with a suspended or revoked license
- Young drivers with a lack of driving experience
- Drivers who drive sports cars or participate in drag racing
- Drivers with bad credit or lapses in insurance coverage
Cheapest Car Insurance in Texas for High-Risk Drivers
The average annual cost of policies from Farmers is $1,122 per year. Based on MoneyGeek’s rankings, this is the cheapest option for high-risk drivers in Texas.
Use our MoneyGeek’s Farmers Auto Insurance review to learn more about this insurer and how it compares with other options.
An SR-22 Insurance in Texas is required if you've been driving without insurance, have had a suspended license or have a driving violation. It shows you meet the minimum liability requirements for your state.
Best Car Insurance in Texas for High-Risk Drivers
High-risk drivers in Texas can generally find the best car insurance policies from State Farm. This insurer received the highest MoneyGeek score of 92 out of 100. It costs around $1,155 per year on average.
Farmers, which scored 91 out of 100, is also worth considering. It offers the cheapest policies at $1,122 per year.
Scoring the highest at 92 out of 100, State Farm offers high-risk insurance policies at an average of $1,155 per year. This is 23% more than an average rate of $892 per year.
State Farm Auto insurance is consistently one of the top-rated insurance companies in the US. It offers coverage like original equipment manufacturer (OEM) and rideshare insurance.
Farmers’ high-risk auto insurance costs $1,122 per year. This insurer ranked as the second-best insurer in Texas for high-risk drivers, scoring 91 out of 100.
Farmers offers many types of coverage, like OEM and custom parts. It also has unique discounts.
Additionally, Farmers scored well on customer complaints and has strong financial stability.
The best car insurance often comes with a higher cost because it should include great service. But, when looking at insurance companies in Texas for low-income drivers — even those with bad driving records — you don't necessarily have to break the bank to get quality insurance.
Cheapest Car Insurance in Texas for Drivers With a DUI
Auto insurance costs automatically increase after a DUI. That’s why comparing providers that offer policies at an affordable rate after a DUI record is essential.
In Texas, drivers with a DUI can find the cheapest options from Esurance Auto Insurance. A policy from this insurer costs $1,137 per year on average.
An excellent choice for drivers with DUIs who have military backgrounds may be USAA Auto Insurance.
Vehicle insurance premiums are expensive as long as you have a DUI. Unfortunately, you can negotiate for a lower rate only after your DUI disappears from your record. This usually takes a couple of years in some states.
However, Texas has a lifetime look-back period. This means your DUI is on your record permanently, so there's little room for negotiation.
Cheapest Car Insurance in Texas for Teenage Drivers
In Texas, teenage drivers pay more because of a higher perceived risk due to their inexperience behind the wheel.
The cheapest high-risk insurance for teen drivers in Texas is GEICO. Policies from this insurer cost around $3,199 on average.
Refer to MoneyGeek's review of GEICO Auto Insurance to learn how young drivers can save with this insurer.
Auto insurance for high-risk teenage drivers is typically more expensive. But it doesn't mean you can skip getting a policy or should opt for minimal coverage. On the contrary, full coverage is advisable. It may cost more upfront but could save a ton in the event of an accident.
There are many affordable auto insurance options for teen drivers with full coverage and high customer satisfaction.
Cheapest Car Insurance in Texas for Drivers With Bad Credit
Auto insurance companies in Texas look at your credit history as a predictor of how likely you are to file claims. Even though the two may seem unrelated, drivers with bad credit scores seem like higher risks to insurers.
The cheapest high-risk insurance company in Texas for drivers with bad credit is Farmers Auto Insurance, which has policies at an average of $1,258 per year. This is about 39% higher than the costs to drivers with good credit, who pay around $767 annually.
Don't forget: Raising your credit score could also help your car insurance prices go down.
Finding insurance companies that offer affordable insurance with a bad credit history can be challenging. MoneyGeek's guide ranks insurers based on affordability for drivers with bad credit.
How Much Does Car Insurance Cost for High-Risk Drivers in Texas?
Insurance companies look at several risk factors to estimate how much it costs to insure a driver. These factors include but aren't limited to driving record, credit history, and age.
They'll likely charge high-risk drivers in Texas expensive premiums to make up for potential claims.
The average cost of policies for high-risk drivers in Texas is $1,509 per year. Low-risk drivers typically pay around $1,081 per year.
Annual Car Insurance Cost in TX for Low-Risk vs. High-Risk Drivers
This is 40% more expensive.
MoneyGeek’s free car insurance calculator for Texas can help you figure out how much car insurance may cost for your profile. Keep in mind that rates differ for each driver as there are numerous factors like age, automobile details, coverage level and driving history taken into account when determining your premiums.
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Can You Still Get Car Insurance in Texas if Insurers Refuse to Insure You?
Insurance companies have every right to refuse to insure a driver. But you need insurance to drive, and you can find it. You might turn to an alternate market plan if you've done some research and have been regularly turned down by insurers in Texas.
The Automobile Insurance Plan Service Office (AIPSO), a non-profit company, provides services to high-risk drivers struggling to get insurance.
The Texas Department of Insurance is also a helpful reference for your rights as a consumer.
Texas Department of Insurance
You may find a residual market plan based on your location using the state-by-state database maintained by AIPSO. In Texas, the residual market plan is called the Texas Automobile Insurance Plan Association (TAIPA).
TAIPA Applicants must attest that they were turned down by at least two different auto insurance providers within the last 60 days to qualify for TAIPA coverage.
Military personnel stationed in Texas or Texas residents who reside outside the state may also apply for TAIPA coverage.
Monday to Friday, 8 a.m. to 4 p.m. CT
512-444-4441; Toll-Free: (866) 321-9154
(512) 444-7639 or (512) 531-7255
P. O. Box 149144 Austin, TX, 78714-9144
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Frequently Asked Questions
It might be hard to get insurance if you're a high-risk driver. MoneyGeek is here to help by answering your frequently asked questions about high-risk car insurance in Texas.
MoneyGeek calculated average rates using full coverage car insurance policies with 100/300/100 liability insurance and comprehensive and collision coverage with a $1,000 deductible. Minimum coverage car insurance policy rates were calculated based on each state’s minimum car insurance requirement.
To calculate rates for high-risk drivers, MoneyGeek averaged the premiums insurance companies charge for three of the most common driving violations: speeding, at-fault accident and DUI.
To determine the best car insurance company for high-risk drivers, MoneyGeek scored companies based on affordability, customer satisfaction and complaints — obtained from J.D. Power surveys and NAIC complaint scores — and financial strength ratings as calculated by AM Best. Affordability received the greatest weighting in our calculations.
About Mark Fitzpatrick