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Texas does not have any insurance programs that offer affordable car insurance coverage to low-income drivers—but Texas drivers can lower their costs by comparing auto insurance quotes from different providers and qualifying for

car insurance discounts

To find
cheap auto insurance in Texas
that fits your budget and coverage needs, shop around with different insurance providers.
Insurance companies will calculate your rate differently based on factors like your driving history and demographics, so get rates from at least 3-5 insurers.
Ask your agent about insurance discounts, like safe driver, bundling different insurance products, and more.
Although it may seem cheaper in the short term, opting for the state-minimum liability coverage can end up leaving you responsible for huge repair and medical bills after an accident.

Texas doesn’t have an auto insurance assistance program for low-income drivers

Texas does not have any government programs to help

low-income individuals and families

get affordable car insurance.

Texas drivers are responsible for finding an auto insurance policy that works for their budget from a private auto insurance company.

Best companies for cheap car insurance in Texas

Of the big-name brands, the following tend to offer the best rates to Texas drivers:

Farmers

State Farm

GEICO

For local choices, consider these insurance companies:

Fred Loya

Chubb

Texas Farm Bureau

There isn’t a single insurance provider with the best car insurance rates for all Texans.

How car insurance companies calculate quotes

varies from provider to provider, and it’s highly individualized based on your driving record, demographics, the type of car you drive, and even your ZIP code.

The cheapest car insurance company for you will depend on your unique driving profile—but here are the top 5 providers in Texas with the best rates based on our data:

Car Insurance Companies	Full-coverage Annual Rate	Minimum-coverage Annual Rate
Progressive	$1,947	$1,497
Safeco	$2,103	$1,617
Clearcover	$3,624	$2,788
Travelers	$3,861	$2,970
Bristol West	$5,496	$4,228

Best car insurance for low-income students: Travelers

Young drivers and

teen drivers

under the age of 25 typically have the hardest time finding cheap car insurance—so you’ll most certainly see your family’s car insurance premiums rise once your teen gets their driver’s license and you add them to your policy.

Low-income students will want to look for providers that offer certain car insurance discounts like good student discounts and

safe driver discounts

Car Insurance Companies	Full-coverage Annual Rate	Minimum-coverage Annual Rate
Progressive	$3,115	$1,500
Clearcover	$2,673	$1,380
Allstate	$2,878	$1,440
National General	$3,192	$1,666
Aspire Advantage	$2,200	$1,711
Bristol West	$2,330	$1,947
Dairyland	$2,168	$1,731
Infinity	$1,873	$1,793
Travelers	$774	$2,833
Nationwide	$2,740	$1,421
Mapfre	$955	$2,158
Safeco	$2,996	$2,767
Anchor General	$2,001	$1,573
Kemper	$2,310	$1,056
Electric	$2,009	$1,545
Commonwealth Insurance	$2,603	$2,002
Encompass	$4,225	$3,250
Gainsco	$1,905	$1,466
Assurance America	$2,631	$2,024
AAA	$3,520	$2,708
First American	$2,765	$2,127
Mercury	$2,500	$1,923

MORE:

Car insurance for college students

Best car insurance for low-income seniors: Nationwide

Rates tend to shoot up again once you reach the age of about 70. There are a few good ways to reduce your rates:

Taking a defensive driving course

is an easy way for seniors to earn a discount while brushing up on safe driving habits.

Older drivers who don’t need to use their cars as much could also benefit from

pay-per-mile car insurance

, with average savings as high as 40% off.

Here are the average costs for seniors from some of Texas’s top-rated insurance providers:

Car Insurance Companies	Full-coverage Annual Rate	Minimum-coverage Annual Rate
Allstate	$997	$1,669
National General	$1,222	$1,030
Progressive	$2,158	$2,032
Aspire Advantage	$882	$1,465
Clearcover	$2,258	$1,533
Travelers	$2,157	$1,659
Bristol West	$2,322	$1,615
Nationwide	$879	$2,253
Dairyland	$2,524	$1,579
Infinity	$1,489	$1,407
Encompass	$2,619	$2,015
Mapfre	$2,295	$1,765
Safeco	$3,098	$2,383
Kemper	$2,302	$1,771
Assurance America	$6,026	$4,635

MORE:

Finding the best senior’s car insurance

Best car insurance for low-income drivers with bad credit: Kemper

Finding cheap car insurance with a bad credit score is challenging in Texas. Your

credit score affects your car insurance rates

because it reflects your financial responsibility:

A low credit score could point to a history of late payments or irresponsible decision-making

A good credit score paints the picture of a responsible, fastidious driver

Here are some average rates from top providers for drivers with poor credit:

Car Insurance Companies	Great(750-850)	Good(600-750)	Fair(500-600)	Poor(300-500)
Progressive	$1,917	$2,021	$2,136	$2,372
Allstate	$2,084	$2,196	$2,321	$2,579
Clearcover	$1,845	$1,944	$2,055	$2,283
National General	$1,826	$1,925	$2,035	$2,260
Travelers	$2,041	$2,152	$2,274	$2,526
Safeco	$2,629	$2,771	$2,929	$3,254
Bristol West	$2,904	$3,061	$3,235	$3,594
Nationwide	$2,264	$2,387	$2,523	$2,802
Encompass	$2,328	$2,454	$2,593	$2,881
Kemper	$1,412	$1,488	$1,573	$1,747
Mapfre	$1,483	$1,563	$1,652	$1,835
Oregon Mutual	$1,854	$1,954	$2,066	$2,295

Best car insurance for low-income drivers with violations: Mapfre

Getting a speeding ticket or being charged with a DUI won’t just get you into serious legal trouble—it will also have a long-term effect on your car insurance costs.

While you don’t necessarily need a

clean driving record

to find affordable coverage in Texas, having recent violations and at-fault accidents on your record will definitely make it harder.

Check the table below to see how violations affect your Texas car insurance rates:

Companies	Reckless Driving	Speeding	DUI	Failure to Obey Traffic Sign	Improper Passing
National General	$1,574	$1,271	$1,134	$1,281	$1,242
Aspire Advantage	$1,395	$1,766	$1,374	$1,579	$1,510
Progressive	$1,646	$1,280	$1,188	$1,353	$2,712
Bristol West	$1,800	$1,609	$1,882	$1,999	$1,800
Allstate	$1,430	$1,166	$900	$1,431	$1,383
Clearcover	$1,484	$1,248	$1,244	$1,422	$1,484
Nationwide	$1,202	$1,529	$947	$1,227	$1,202
Dairyland	$1,542	$1,743	$1,262	$1,680	$850
Infinity	$1,718	$1,527	$881	$1,994	$1,549
Mapfre	$1,067	$1,139	$1,067	$1,808	$1,067
Travelers	$1,348	$1,153	$1,348	$1,348	$1,348
Mercury	$1,604	$1,562	$1,604	$1,604	$1,604
Safeco	$1,523	$1,523	$1,523	$1,376	$1,523

MORE:

How do I lower my car insurance after a speeding ticket?

Recommended car insurance coverage for low-income drivers

Under Texas law, you’ll need a policy that includes at least the following minimum car insurance requirements:

$30,000 of

bodily injury liability coverage

per person

$60,000 of bodily injury liability coverage per accident

$25,000 in

property damage liability

per accident

Texas only requires drivers to carry liability insurance. This insurance means that your insurance company will cover medical bills and vehicle repairs for other drivers if you cause an accident.

If you want a full-coverage policy for your own vehicle, you’ll need to add other types of coverage:

Collision coverage

: Collision insurance covers repair costs after an accident with another vehicle or object

Comprehensive coverage

: Comprehensive insurance pays for vehicle repairs from things like vandalism and extreme weather

Uninsured motorist coverage

Personal injury protection (PIP)

Full-coverage insurance better protects your car, but it comes with a higher price—so it’s often hard for low-income drivers to find full coverage that they can afford.

Driving without car insurance in Texas carries serious penalties

It’s illegal to drive a registered car in Texas without meeting the state’s insurance requirements first—and incredibly risky for your wallet.

Fines up to $1,000 if you’re caught

driving without car insurance

Responsible for any damages you cause in an accident

If you can’t afford even minimum coverage, here are a few options:

Call your insurance provider to ask for a

car insurance discount

Raise your deductible

Shop for a new policy

Seek out alternative transportation

How to save on car insurance costs in Texas

With insurance rates going up across the board, comparing

car insurance quotes online

is the best option to find the most affordable insurance coverage.

That said, there are some other strategies you can try to lower your premium.

Drive less: Not only will you

save money on gas

, but you may even qualify for a cheaper auto insurance rate if you

drive less than 50 miles a day

Compare car insurance discounts: Many companies offer discounts for good drivers, and you can often earn up to 20% off the cost of car insurance by enrolling in a

telematics

program that reports your driving habits.

Combine policies or bundle insurance products: You can typically get a specific type of discount for buying multiple policies from the same company. Ask your insurance agent which discounts are available—you might be able to get a

multi-car insurance policy

if you need to insure more than one vehicle, or

bundle your homeowners (or renters) and auto insurance

to save money on both!

Consider when and how you pay: You could save up to 20% on your coverage when you

pay for car insurance in full instead of monthly payments

. On the other hand, a monthly payment plan may be a better choice for your financial capability. You’ll lose out on a

paid-in-full discount

, but your payments will be much more manageable when spread out in smaller increments.

Lower your amount of coverage: A

full-coverage car insurance

policy is great—until you can’t afford it. Consider either comprehensive or collision coverage options, or dropping full coverage altogether and sticking to a liability-only policy.

Park in a garage: You’ll likely get a lower premium on full coverage if you regularly park your car in a garage. Cars parked on the street—or even in your driveway—are more prone to damage.

Raise your deductible: You’ll have to

choose an insurance deductible

—the amount you pay out of pocket before insurance kicks in—if you keep collision or comprehensive insurance on your policy. A higher deductible means your insurance pays a little less on your claims, and you’ll pay less for your insurance as a result.

Build your credit: Building your credit won’t just help you lower your car insurance rates—it will come in handy if you want to buy a house or take out a

car loan

. Start by paying off older debts first and you’ll be on your way to a better financial situation in all regards.

“I’m a young adult in college. I paid overpriced insurance regularly, until
Jerry
found me a fast and easy quote. It reduced my costs by 60%.” —Niveah M.