Cheapest Car Insurance for Low-Income Drivers in Texas (2024)
State Farm has the cheapest liability car insurance in Texas, with average rates of $37 per month.
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Written byJess Ullrich
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10+ years writing insurance and personal finance topics
Former associate finance editor for Investopedia
Jess is a subject matter expert in insurance, banking, and other personal finance topics. Her byline has appeared in numerous top web media, including Investopedia.
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Edited byAshley Cox
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Updated October 29, 2024
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Table of contents
The exact definition of a “low-income driver” can vary. But in general, low-income families are those with earnings that fall below the U.S. Department of Health and Human Services’ poverty guidelines. For 2024, a person with an annual income of $15,060 or below is considered a low-income earner, while the annual threshold for a family of five is $36,580.[1]
If you’re a low-income Texas driver, you have options for finding cheaper car insurance rates. The Lone Star State doesn’t subsidize auto coverage for its low-income drivers, but it only requires drivers to obtain liability coverage, which is much cheaper than full coverage. Many companies also provide discounts that can reduce your insurance rates.
Here’s what you should know about comparing quotes and finding car insurance for low-income earners in Texas.
Quick Facts
State Farm, GEICO, and Allstate offer the most affordable liability coverage for Texas drivers.
If you have poor credit, you’ll likely pay higher car insurance rates in Texas.
Texas drivers pay higher rates for insurance — an overall average of $182 per month compared to the overall nationwide average of $158 per month.
Cheapest low-income car insurance in Texas
Drivers in Texas pay an average cost of $119 per month for liability-only insurance and $245 per month for full-coverage car insurance, according to Insurify data. While State Farm has the cheapest liability rates on average, other insurance companies may also offer coverage that aligns with your budget.
Here are some of the cheapest car insurance companies in Texas.
The below rates are estimated rates current as of: Sunday, September 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Quote: Liability Only ▲▼ | IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. ▲▼ |
|---|---|---|
| State Farm | $37 | 9.3 |
| GEICO | $40 | 9.0 |
| Allstate | $52 | 8.9 |
| Mile Auto | $55 | 7.5 |
| USAA | $66 | 9.4 |
| Nationwide | $83 | 8.7 |
| Mercury | $86 | 8.0 |
| Safeco | $95 | 8.3 |
| Progressive | $99 | 8.4 |
| Dairyland | $105 | 7.0 |
| Chubb | $112 | 6.5 |
| Clearcover | $113 | 6.8 |
| National General | $121 | 6.8 |
| 21st Century | $129 | 5.9 |
| Direct Auto | $132 | 7.3 |
| The General | $133 | 7.3 |
| Commonwealth Casualty | $136 | 5.5 |
| Elephant | $137 | 8.3 |
| Bristol West | $140 | 5.2 |
| GAINSCO | $163 | 7.3 |
| Liberty Mutual | $167 | 7.7 |
| AssuranceAmerica | $170 | 5.3 |
| Infinity | $190 | 0.0 |
| State Auto | $196 | 8.5 |
| Foremost | $224 | 7.4 |
| Hugo | $287 | 7.0 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Find Cheap Car Insurance in Texas
Liability quotes start as low as $37 per month
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Best car insurance for drivers with a low income in Texas
Liability-only insurance is the cheapest form of car insurance. But it offers less protection than a full-coverage policy, which typically includes liability insurance, comprehensive insurance, and collision insurance.
For example, liability coverage won’t pay for your injuries or damage to your car if you’re at fault in a motor vehicle accident or if a tree limb hits your car’s roof. It only covers damages to another person or their vehicle if you’re at fault in an accident.[2]
If you’re seeking cheap liability coverage, it’s worth getting a quote from State Farm, GEICO, and Allstate.
State Farm: Best for customer satisfaction
State FarmCompare personalized, real-time quotes
| User Reviews | 3.2 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $55/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $121/mo |
Each year, data analytics and consumer intelligence company J.D. Power releases an auto insurance study. This study is primarily focused on customer satisfaction. For 2023, State Farm ranks among the top insurance companies in Texas for customer satisfaction.
Not only that, but this insurer also offers cheap liability coverage, especially for teen drivers and older adults. If you want a hassle-free auto insurance experience and coverage that aligns with your budget, State Farm could be worth a look.
Pros
Above-average J.D. Power customer satisfaction rating in Texas
Large network of local insurance agents
Some of the cheapest liability coverage in Texas
Cons
Gap insurance not available
Negative customer reviews on Trustpilot
Fewer discounts than some competitors
Read more driver reviews of State Farm
Jannie - October 29, 2024
Verified
Good
The insurance is higher than other companies' policies.
Marsha - October 29, 2024
Verified
Friendly agents!
Check out their prices!
Linda - October 29, 2024
Verified
I also have my homeowners insurance with them. I had a fire in my hot water heater and a year later, someone stayed in my house while I was gone for 2 months. I came home to a floating kitchen floor. After these incidents, StateFarm cancelled my policy.
I also have my homeowners insurance with them. I had a fire in my hot water heater and a year later, someone stayed in my house while I was gone for 2 months. I came home to a floating kitchen floor. After these incidents, StateFarm cancelled my policy.
…
GEICO: Best for military families
GEICOCompare personalized, real-time quotes
| User Reviews | 3.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.0/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $55/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $121/mo |
Veterans account for nearly 7% of the total population in Texas, and with 15 military installations, the state is also home to countless active-duty service members.[3] As a token of gratitude for serving the country, GEICO offers an exclusive car insurance discount of up to 15% for military members and veterans.
While State Farm’s coverage might be slightly cheaper, GEICO’s affiliation discount could tip the scales in terms of cost. It’s worth getting a quote from GEICO if you’re in the military and seeking new car insurance coverage.
Pros
Many available discounts
24/7 customer service
AM Best financial strength rating of A++ (Superior)
Cons
Below-average J.D. Power customer satisfaction rating in Texas
Few local agents
Pay-per-mile insurance isn’t available
Read more driver reviews of GEICO
Herman - October 29, 2024
Verified
Excellent
For us, it came down to cost and having all of our insurance with the same company, not farmed out.
Greg - October 29, 2024
Verified
It's Expensive
It's expensive.
Robert - October 29, 2024
Verified
Unpleasant Experience on Cape Cod
My insurance has gone from $37 a month to $82. Stay far away from this company.
…
Allstate: Best for discounts
AllstateCompare personalized, real-time quotes
| User Reviews | 3.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.9/10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $62/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $137/mo |
Allstate offers a broad range of discounts, including a good student discount that could help lower young drivers’ insurance costs. Texas drivers can save for having specific car features, such as anti-lock brakes and anti-theft devices. This insurer also offers several discounts related to on-time payments and safe driving, making it a good choice if you have a clean driving record.
Pros
More available discounts than many competitors
AM Best financial strength rating of A+ (Superior)
Large network of local insurance agents
Cons
Pay-per-mile insurance isn’t available in Texas
Below-average J.D. Power customer satisfaction rating in Texas
Not the cheapest coverage available
Read more driver reviews of Allstate
Howard - October 29, 2024
Verified
They Have You By The Short Hairs
I was on a three-lane highway in heavy traffic and couldn't avoid a piece of metal in my lane. I couldn't swerve or I would have hit other cars. Allstate said the accident was the driver's fault and then doubled my insurance cost.
Hugh - October 29, 2024
Verified
Actual Crash Damages vs. Damages Quoted Over the Phone
There were problems getting the correct amount paid out when I made a claim. I had to escalate the issue to the Senior Vice President to get a proper settlement when a deer hit my truck. There was a $5000 difference between what was paid out when the estimator assessed the value of damage to my truck and the actual estimate done by a local car dealership. The Senior Vice President agreed that the amount of damage done was the amount quoted by the local car dealership.
Miriam - October 29, 2024
Verified
Best Overall
Check around before choosing. Allstate has been my choice for years.
…
Cheapest car insurance for drivers with poor credit in Texas
While it’s illegal for insurers in some states to consider your credit history when calculating your insurance rates, this practice is legal in Texas. Drivers with poor credit often pay more for car insurance, as insurers may view them as more likely to file a claim.
By contrast, drivers with good or excellent credit often get lower rates. Other factors also affect the cost of car insurance, like your city, age, and ZIP code.
Here’s a quick cost comparison for how much Texas drivers with good credit and poor credit pay each month for a liability policy.
The below rates are estimated rates current as of: Sunday, September 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Quote: Good Credit ▲▼ | Average Quote: Poor Credit ▲▼ |
|---|---|---|
| State Farm | $36 | $51 |
| GEICO | $39 | $48 |
| Allstate | $49 | $64 |
| Mile Auto | $52 | $67 |
| USAA | $64 | $81 |
| Nationwide | $81 | $102 |
| Mercury | $82 | $105 |
| Safeco | $90 | $116 |
| Progressive | $94 | $121 |
| Dairyland | $100 | $129 |
| Clearcover | $108 | $134 |
| Chubb | $109 | $172 |
| National General | $115 | $148 |
| 21st Century | $123 | $158 |
| The General | $127 | $163 |
| Direct Auto | $129 | $162 |
| Commonwealth Casualty | $129 | $167 |
| Elephant | $130 | $168 |
| Bristol West | $136 | $171 |
| GAINSCO | $155 | $200 |
| Liberty Mutual | $160 | $205 |
| AssuranceAmerica | $162 | $208 |
| Infinity | $181 | $233 |
| State Auto | $186 | $247 |
| Foremost | $213 | $274 |
| Hugo | $273 | $352 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Minimum car insurance requirements in Texas
Texas requires drivers to obtain the following car insurance coverages in order to be roadworthy:[4]
Bodily injury liability
$30,000 per person
$60,000 per accident
Property damage liability
$25,000
Your liability insurance will pay out if you’re at fault in a car accident that results in damage to another person’s vehicle or personal property. It’ll also pay for their medical bills if they’re hurt in the accident.
A liability-only policy could be sufficient if you drive an older or high-mileage vehicle, though it doesn’t offer as much protection as full-coverage insurance. Likewise, opting for minimum coverage might save you money, but it could put you at risk if you get into an accident and the related expenses exceed your coverage limits.
Shop for a Liability-Only Policy in Texas
Check quotes from 100+ top insurance companies
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State-sponsored car insurance in Texas
Unfortunately, the Texas government doesn’t subsidize car insurance costs for low-income drivers, and the state’s car insurance rates are on the high side compared to other U.S. states.
The best way to find an inexpensive auto policy in Texas is to shop around, get quotes from several different car insurance companies, and take advantage of as many discounts as possible.
Car insurance discounts for low-income Texas drivers
Discounts are another great way to save some money on your auto policy. Here are some common ones to look for:
Bundling discount
You can often get a discount if you bundle multiple insurance products, such as auto and homeowners insurance, from the same company.
Vehicle safety feature discount
Many insurers also offer discounts for certain vehicle safety features, like anti-lock brakes or car alarms.
Good student discount
If you’re a student, you might be able to save on your car insurance by maintaining a certain GPA.
Safe driver discount
Drivers with clean records often get the best insurance rates, and you could get additional savings if you remain accident-free for a set time period.
Responsible payment discount
Insurance companies may give you a discount if you opt for automatic payments, pay your premium in full, or avoid missing payments for a set time period.
Low-income car insurance in Texas FAQs
If you’re still wondering about low-income car insurance in Texas, this additional information may help as you shop for a policy.
Which company has the cheapest car insurance company in Texas?
State Farm offers the cheapest auto insurance for Texas drivers, with monthly rates of $37 for liability-only coverage and $67 for full coverage.
How much is full-coverage car insurance in Texas?
Texas drivers pay an average of $245 per month for full-coverage car insurance. This is higher than the national full-coverage rate of $211 per month.
How do I get low-income car insurance in Texas?
The state of Texas doesn’t offer any special subsidies for low-income drivers seeking auto insurance. Instead, you’ll need to compare coverage options and get car insurance quotes from different companies to find low-cost coverage. Don’t forget to ask about any discounts you might be eligible for that could help you save more on your premiums.
What is the lowest form of car insurance required in Texas?
Texas law requires drivers to carry a minimum amount of liability insurance. You’ll need to purchase $30,000 per person and $60,000 per accident in bodily injury liability coverage, as well as $25,000 in property damage liability coverage.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Sources
- U.S. Department of Health and Human Services. "Poverty Guidelines."
- Insurance Information Institute. "Auto insurance basics—understanding your coverage."
- Texas Workforce Investment Council. "Veterans in Texas: A Demographic Study."
- Texas Department of Insurance. "Auto insurance guide."
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Jess UllrichInsurance Writer
Jess is a personal finance writer who's been creating financial and business content for over a decade. Her work is published on Investopedia, MoneyWise, NextAdvisor, The HuffPost, and more. Prior to freelancing full-time, Jess was an editor at Investopedia, The Balance, and FinanceBuzz. Connect with her on LinkedIn.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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