Cheapest Texas Car Insurance for Low-Income Drivers
Texas doesn't have a low-income car insurance program, but you can still get cheap rates by shopping around, comparing quotes and using discounts.
Find Cheap Car Insurance Quotes in Texas
Cheapest companies for low-income car insurance in Texas
With an average monthly rate of $64, Geico has the cheapest minimum coverage car insurance for most low-income drivers in Texas.
Find Cheap Car Insurance Quotes in Texas
- Geico's average minimum coverage rate of $64 per month is 38% cheaper than the state average of $104 per month.
- State Farm and Progressive also generally have cheap rates in Texas.
- Minimum coverage from USAA is $59 per month, but you can only get it if you're affiliated with the military.
Minimum coverage gives you very little protection from accidents. If you have minimum coverage and you cause an accident, you might still have to pay for a lot of the bills yourself. If you can't afford anything else, it's better than not having any car insurance. But if you have any wiggle room in your budget, it's worth it to get quotes for higher liability limits.
Cheap minimum liability insurance rates in Texas
Company |
Value Penguin score
| Monthly rate | |
|---|---|---|---|
| Geico | $64 | ||
| State Farm | $71 | ||
| Progressive | $102 | ||
| Farmers | $147 | ||
| Allstate | $184 | ||
| USAA | $59 | ||
Rates are monthly averages for state minimum coverage in Texas. USAA is only available to military members, veterans and certain family members.
How much of Texas drivers' incomes goes toward car insurance
Car insurance can be a big part of your budget, depending on your income. A minimum coverage policy from Geico costs 3% of your income, on average, if you make $25,000 per year, but only 1% if you make $80,000.
$25,000
$40,000
$80,000
Company | Min. cov rate | % of income | |
|---|---|---|---|
| Geico | $64 | 3.0% | |
| State Farm | $71 | 3.4% | |
| Progressive | $102 | 4.9% | |
| Farmers | $147 | 7.1% | |
| Allstate | $184 | 8.9% | |
| USAA | $59 | 2.8% | |
Rates are for state minimum coverage in Texas. USAA is only available to military members, veterans and certain family members.
Cheapest car insurance for low-income drivers in Texas with poor credit
Geico has the cheapest car insurance in Texas if you have a poor credit score, at $93 per month, on average.
Company | Good credit rate | Poor credit rate | Diff. |
|---|---|---|---|
| Geico | $64 | $93 | $29 |
| Progressive | $102 | $127 | $25 |
| Farmers | $147 | $211 | $64 |
| Allstate | $184 | $249 | $65 |
| State Farm | $71 | $457 | $386 |
| USAA | $59 | $87 | $28 |
Rates are for state minimum coverage in Texas. USAA is only available to military members, veterans and certain family members.
Find Cheap Car Insurance Quotes in Texas
- Progressive is also a cheap option for many drivers, with an average rate of $127 per month.
- State Farm raises rates the most if you have a poor credit score. Its average minimum coverage rate for drivers with poor credit is more than five times the average for drivers with good credit.
- Having a lower income can make it harder to pay bills on time, which could impact your credit and lead to a poor score.
Cheapest car insurance in Texas for young drivers with low incomes
At $202 per month, on average, Geico sells the cheapest minimum coverage for low-income 18-year-olds in Texas.
Company |
Value Penguin score
| Monthly rate | |
|---|---|---|---|
| Geico | $202 | ||
| State Farm | $226 | ||
| Progressive | $352 | ||
| Allstate | $387 | ||
| Farmers | $646 | ||
| USAA | $161 | ||
Rates are monthly averages for an 18-year-old with state minimum coverage in Texas. USAA is only available to military members, veterans and certain family members.
- Minimum coverage from Geico costs $202 per month for an 18-year-old in Texas. That's 39% cheaper than the state average of $329 per month.
- State Farm is also a cheap option, at an average of $226 per month, and it's a better choice if you want good service.
- Young drivers pay higher rates because they're more likely to get into accidents compared to more experienced drivers.
Best car insurance company for low-income drivers in Texas
State Farm sells the highest-quality car insurance for drivers in Texas who have low incomes.
Company |
Value Penguin score
| |
|---|---|---|
| State Farm | ||
| Farmers | ||
| Progressive | ||
| Geico | ||
| Allstate | ||
| USAA | ||
Rates are monthly averages for state minimum coverage in Texas. USAA is only available to military members, veterans and certain family members.
- While State Farm isn't the absolute cheapest company in the state for low-income drivers, it has the highest ValuePenguin rating. This means it sells good quality coverage, has good discounts and offers good customer service.
- Getting a plan from Geico is usually cheaper, which may be the most important factor for Texans with low incomes. But keep in mind that you might not get the best service or range of coverage options from Geico.
Texas Automobile Insurance Plan Association (TAIPA)
The Texas Automobile Insurance Plan Association, or TAIPA, is a state-run "last-resort" car insurance option.
If you have a low income and also have a bad driving record, you may need to get coverage through the TAIPA.
To qualify, you must:
- Have a valid driver's license
- Be a Texas resident or have a vehicle registered in Texas
- Confirm that you've been rejected by two insurance companies within 60 days
You can only get state minimum limits through the Texas Automobile Insurance Plan Association. Coverage can be expensive, but if you can't find a policy anywhere else, it's a better option than skipping insurance altogether.
How low-income drivers can save on Texas car insurance
You might be able to get cheaper car insurance by shopping around, using discounts and making sure you only buy the coverage you need.
- Shop around. Getting quotes from multiple companies helps you see which one can offer you the best rate.
- Use discounts. Most car insurance companies have at least a few discounts that can help you lower your bill. Common savings include bundling, having safety features on your car and not having any claims on your record.
- Consider a telematics program. These programs track your driving habits and give you a personalized discount. If you're a safe driver, they can be a great way to save. But if you drive badly, you might see your rates go up.
- Review your coverage. If your budget is tight, check your coverage and get rid of any extras that you don't need. For example, roadside assistance and rental car coverage are common and useful add-ons, but they aren't necessary or required.
Minimum car insurance coverage requirements in Texas
In Texas, you're required to have 30/60/25 car insurance to drive legally.
That means you must have a car insurance policy with at least these limits:
- Bodily injury liability: $30,000 per person and $60,000 per accident
- Property damage liability: $25,000 per accident
If you're a low-income driver and can't afford anything else, a policy with minimum state requirements will at least let you drive legally. But minimum coverage isn't usually enough for most drivers. It's very possible to cause an accident that costs more than the minimum coverage limits, which means you have to pay the difference out of your own pocket.
Minimum coverage also doesn't cover damage to your own car. If you cause an accident, you have to pay for your car yourself.
Frequently asked questions
Does Texas offer low-income car insurance?
No, Texas doesn't have a specific program for low-income car insurance. If you're struggling to afford coverage, your best option is to shop around and compare rates. You should also ask each company about discounts, which can help you get a cheaper policy.
What is the best car insurance in Texas for people with low incomes?
State Farm sells the best car insurance in Texas for low-income drivers. However, Geico has the cheapest rates. If you choose Geico over State Farm, you might sacrifice customer service and coverage quality to get a cheaper price.
Methodology
To find the cheapest car insurance for drivers with low incomes in Texas, ValuePenguin analyzed rates from six of the top companies in the state across every residential ZIP code. Rates are for a 30-year-old man with good credit who drives a 2018 Honda Civic EX. Young driver rates are for an 18-year-old, and the credit tier rates include costs for both good and poor credit scores.
All rates are for state minimum coverage in Texas:
- Bodily injury liability: $30,000 per person and $60,000 per accident
- Property damage liability: $25,000 per accident
ValuePenguin's rate data comes from Quadrant Information Services, which gets its data from public insurance company filings. Rates should be used for comparative purposes only. Your quotes will differ based on your unique circumstances.
ValuePenguin's insurance experts rate companies by reviewing costs, coverage, discount, customer service and unique features. Customer service rankings come from the National Association of Insurance Commissioners (NAIC) and J.D. Power reports.
About the Author
Senior Writer
Cate Deventer is a Senior Writer who specializes in health insurance, Medicare, auto and home insurance. She's been a licensed insurance agent since 2011.
She started her insurance career working as a customer service agent for State Farm. She later moved to an independent agency, where she worked with several insurance companies and hundreds of clients. She quoted policies, filed claims and answered insurance questions. In 2021, she pivoted her career and began writing about insurance for Bankrate. She moved to ValuePenguin in 2023 and began writing about health insurance and Medicare.
Cate has a passion for helping readers choose insurance to fit their needs. She enjoys knowing that her research and knowledge help people choose insurance products that make a positive difference in their lives.
How insurance helped Cate
Cate used her health insurance knowledge to navigate a surgery in 2023. Understanding how her policy worked let her focus on recovery instead of worrying about bills.
Expertise
- Health insurance
- Medicare & Medicaid
- Auto insurance
- Home insurance
- Life insurance
Credentials
- Licensed Life, Accident & Health Insurance Agent
- Licensed Property & Casualty Insurance Agent
Referenced by
- CBS
- NBC
- Wall Street Journal
Education
- BA, Theatre, Purdue University
- BA, English, Indiana University
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
