Cheapest Car Insurance for Low-Income Drivers in Texas (September 2024)

For drivers in Texas with low income and poor credit history, Mercury offers the cheapest minimum coverage car insurance at $50 per month. Families with teens find the best rates with State Farm at $67 monthly. Although Texas doesn't offer state-backed insurance pools for drivers with low income, these affordable plans can help manage costs.

A minimum coverage policy is usually the cheapest, but it may not cover all expenses in an at-fault accident. Consider pay-per-mile insurance if you don't drive much, an even more affordable option in the Lone Star State.

Like most other states, car insurance companies in Texas don't offer income-based assistance programs. Income isn't a factor when calculating your car insurance rates in Texas, but other factors — including your age and credit history — are important.

The best way to find the cheapest rates is to compare quotes from several insurance companies. A minimum coverage policy is often the most inexpensive way to stay legal on the road, but it can leave you vulnerable to a substantial loss from an at-fault accident. If you rarely drive, look into pay-per-mile insurance, which could be a great way to save.

Car insurance that meets the state's minimum car insurance requirements is mandatory for all drivers. In Texas, your policy must at least cover:

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

Keep in mind that liability-only car insurance only covers the other driver's expenses in an accident you cause — it doesn't cover damages to your vehicle. To protect your car against a broader range of incidents — including theft, vandalism or natural disasters — you'll need full coverage car insurance, which includes collision and comprehensive coverages.

Opting for full coverage could be a wise choice in Texas. It's recommended if you own a new car and often mandatory if you have an auto loan or lease a vehicle.

Your credit record can affect your car insurance rates in Texas. A lower credit-based insurance score may signal to insurers that you're a higher risk, which can lead to more expensive premiums.

Texas drivers with poor credit records can find affordable rates with:

• Mercury: $599 per year; $50 per month
• Texas Farm Bureau: $712 per year; $59 per month

The cheapest car insurance in Texas for low-income drivers with a good credit history are:

• Texas Farm Bureau: $339 per year; $28 per month
• Mercury: $423 per year; $35 per month

Driving without insurance in Texas is considered a misdemeanor and can lead to suspension of your driver's license and vehicle registration, fines ranging from $175 to $1,000 and other penalties. Make sure you're covered to drive legally and safely.

Although income doesn't directly impact car insurance rates in Texas, your family situation does. A single parent could pay up to $567 more per year than a married couple with one teenager for minimum coverage auto insurance. Here are the most affordable minimum coverage options for each family type in the Lone Star State.

The two cheapest companies for a couple with a teen are:

• State Farm: $810 per year; $67 per month
• Nationwide: $946 per year; $79 per month

The two cheapest car insurance companies in Texas for single parents with a teen are:

• State Farm: $1,377 per year; $115 per month
• GEICO: $1,655 per year; $138 per month

Married couples enjoy lower premiums than single parents due to more perceived financial stability. Regardless of your family status, a good insurance history can lead to more affordable car insurance options.

Car insurance premiums often decrease as you reach the early senior years between 55 and 65, especially with a spotless driving record. Based on state minimum liability rates, the two cheapest car insurance companies for seniors with low income and poor credit in the Lone Star State are:

• Texas Farm Bureau: $616 per year; $51 per month
• Mercury: $652 per year; $54 per month

Around age 70, insurance companies may start charging slightly more because they consider older drivers a higher risk. Texas doesn't have specific laws for senior car insurance, but we recommend checking for any updates or discounts that might help.

Many factors influence car insurance rates. Although your income doesn't affect the price directly, you might pay more if a low income leads to a poor credit record. Understanding these factors can help you find the best car insurance for your needs.

You don't need a state-sponsored program to cut costs — finding affordable car insurance in Texas is possible with the right strategies. Here are some tips to lower your premiums:

Finding affordable car insurance in Texas can be tough for drivers with low incomes. Here are answers to some of your most common questions on how to save.