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.

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Cheapest for Individuals With Low Income

Mercury is the cheapest car insurance provider for single drivers with low income and poor credit history in Texas. Its average minimum coverage premium is $50 per month or $599 per year.

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Cheapest for Families With Low Income

State Farm is the cheapest car insurance provider for families with low income, with an average minimum coverage premium of $67 per month or $810 per year.

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Cheapest for Senior Drivers With Low Income

Texas Farm Bureau is the cheapest car insurance provider for seniors with low income and poor credit score, with an average minimum coverage premium of $51 per month or $616 per year.

Why Trust MoneyGeek? We analyzed thousands of data points and quotes from Quadrant Information Services and the Texas Department of Insurance to get the cheapest average costs for drivers with low income in Texas.

328,384Quotes Analyzed
 
14Companies Compared
 
370ZIP Codes

Does Texas Offer Low-Income Insurance?

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.

Minimum Car Insurance Requirements in Texas

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.

Cheapest Car Insurance for Individuals With Low Income in Texas

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.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Mercury$599$50
Texas Farm Bureau$712$59
Progressive$825$69
AAA Texas$1,020$85
National General$1,087$91
Allstate$1,146$96
Foremost$1,345$112
Nationwide$1,401$117
Chubb$1,804$150
Dairyland$2,017$168
GEICO$2,263$189
State Farm$2,287$191
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Cheapest Car Insurance for Families With Low Income in Texas

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.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
State Farm$810$67
Nationwide$946$79
GEICO$1,095$91
Progressive$1,189$99
Foremost$1,600$133
Allstate$1,779$148

Cheapest Car Insurance for Seniors With Low Income in Texas

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.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Texas Farm Bureau$616$51
Mercury$652$54
Progressive$841$70
AAA Texas$1,076$90
National General$1,128$94
Allstate$1,177$98
Nationwide$1,333$111
Foremost$1,584$132
Chubb$1,642$137
Dairyland$1,948$162
State Farm$2,131$178
GEICO$2,258$188
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

What Factors Affect Car Insurance Rates in Texas?

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.

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    Driving record

    A clean driving history with no at-fault accidents or moving violations usually results in lower rates.

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    Age and gender

    Younger drivers, especially males, typically pay more due to higher risk than more experienced drivers.

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    Credit history

    Your credit history can affect your rates, with lower insurance scores often leading to higher premiums.

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    Location

    Where you live plays a role, with urban areas often having higher rates than rural areas due to more congested roadways, higher accident rates and incidents of vehicle theft and vandalism.

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    Vehicle type

    The make, model and year of your car impact insurance costs. Sportier or more expensive cars generally cost more to insure.

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    Coverage levels

    The higher your level of coverage, the higher your premiums.

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    Insurance company

    Different insurers have different underwriting methodologies and discounts, so it's important to compare quotes.

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    Claims history

    A history of filing claims can lead to higher rates. If you can afford to pay for your own repairs, it might behoove you not to file a claim.

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    Extreme weather events

    Texas is prone to severe weather events like hailstorms, tornadoes, hurricanes and ice storms, which can increase insurance claims and, in turn, rates.

How to Save on Car Insurance in Texas

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:

  1. 1
    Choose minimum coverage

    Opting for state-mandated minimum coverage is often the cheapest way to meet legal requirements. It provides basic protection but may not cover all expenses in an at-fault accident and could lead to a substantial financial loss.

  2. 2
    Compare quotes

    Don't settle for the first quote you receive. Get quotes from multiple insurers to compare rates and discounts. Shopping local or regional insurers might lead to the lowest rates.

  3. 3
    Look for discounts

    Car insurance companies offer various discounts for things like being a good student, having a safe driving record, being an active-duty military member or veteran, or bundling your auto insurance with other policies, such as home and renters insurance.

  4. 4
    Increase your deductible

    If you do get collision or comprehensive coverage, opting for a higher car insurance deductible (the amount you pay out of pocket before your insurance kicks in) can significantly reduce your monthly premium. Be sure you can afford the deductible in case of an accident.

  5. 5
    Consider pay-per-mile insurance

    If you're a low-mileage driver, pay-per-mile insurance can be a great way to save. You pay a base rate plus a per-mile fee, so you only pay for the miles you drive.

  6. 6
    Bundle your policies

    If you have other insurance needs — like homeowners or renters insurance — bundling them with your auto policy often leads to discounts. The best home and auto bundles could save you around $496 each year.

  7. 7
    Drive a cheaper car

    Your car's make, model and year significantly impact your insurance costs. Driving the cheapest cars to insure can save you hundreds of dollars in insurance costs each year.

FAQ: Low-Income Car Insurance in Texas

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.

Does Texas have a state-supported low-income car insurance program?

How can low-income families get affordable car insurance in Texas?

Does your income affect the cost of car insurance in Texas?

What are the benefits of usage-based telematics programs for drivers with low income in Texas?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.