Best Low-Income Car Insurance Choices in Texas
Texas Farm Bureau and State Farm are the best choices for low-income car insurance in Texas. Texas does not have an official low-cost car insurance program. You have to shop around to get an affordable rate.
Best low-income car insurance quotes in Texas
If you’re a low-income driver, get car insurance quotes from Texas Farm Bureau. Texas Farm Bureau has the cheapest liability insurance Liability insurance covers injuries and damage you cause to other people and their property. It’s required by law in almost every state. quotes in Texas at $40 a month. If you need collision Collision covers damage to your car from a collision with another vehicle or object. and comprehensive Comprehensive covers your car for theft and damage from non-collision causes, like fire, flood and vandalism. (comp), it also has the cheapest full coverage at $79 a month.
USAA has the next-lowest rates, but it’s only available to the military community.
Monthly car insurance rates
| Company | Monthly liability | Monthly full coverage | LendingTree score | |
|---|---|---|---|---|
 | Texas Farm Bureau | $40 | $79 |  |
 | State Farm | $52 | $108 |  |
 | Geico | $73 | $137 |  |
 | Progressive | $76 | $181 | |
 | AAA | $87 | $188 |  |
 | Allstate | $191 | $348 |  |
 | USAA* | $48 | $102 | |
*USAA is only available to current and former members of the military and their families.
Your actual rate depends on factors like your driving record, credit history and vehicle. Each company treats these factors differently. It’s important to compare car insurance quotes from a few different companies to find the lowest rate.
Low-cost Texas car insurance after a speeding ticket
Farm Bureau has Texas’ lowest-cost liability insurance for drivers with a speeding ticket, at $40 a month. It also has the cheapest full coverage Full coverage includes collision and comprehensive, which cover your own car for damage and theft. for drivers with a ticket, at $79 a month.
State Farm has the next-best rates for most drivers. Farm Bureau and State Farm both also have good customer satisfaction ratings from J.D. Power J.D. Power’s satisfaction scores are based on customer surveys rating companies on factors like price, coverage options and problem resolution. . This means their customers are generally happy with the prices and services they receive.
Insurance rates after a speeding ticket
| Company | Monthly liability | Monthly full coverage |
|---|---|---|
| Texas Farm Bureau | $40 | $79 |
| State Farm | $52 | $108 |
| Geico | $79 | $156 |
| Progressive | $81 | $228 |
| AAA | $120 | $249 |
| Allstate | $191 | $348 |
| USAA* | $48 | $109 |
Low-cost car insurance after an accident
State Farm has the lowest liability insurance cost for Texas drivers with an at-fault accident, at $63 a month. Farm Bureau is only slightly more expensive at $65 a month.
Farm Bureau has cheaper full coverage after an accident than State Farm, but only by $1 a month.
Auto insurance rates with an at-fault accident
| Company | Monthly liability | Monthly full coverage |
|---|---|---|
| State Farm | $63 | $127 |
| Texas Farm Bureau | $65 | $126 |
| Progressive | $98 | $269 |
| Geico | $113 | $217 |
| AAA | $141 | $289 |
| Allstate | $352 | $586 |
| USAA* | $67 | $146 |
Low-cost car insurance with bad credit
Farm Bureau also has Texas’ lowest-cost car insurance for bad credit. These rates average $88 a month for liability insurance and $181 a month for full coverage.
Progressive has the next-cheapest liability rate bad credit at $101 a month. AAA has the next-cheapest full coverage at $297 a month.
Bad credit car insurance rates
| Company | Monthly liability | Monthly full coverage |
|---|---|---|
| Texas Farm Bureau | $88 | $181 |
| Progressive | $101 | $297 |
| AAA | $135 | $292 |
| Geico | $181 | $351 |
| Allstate | $257 | $478 |
| State Farm | $321 | $756 |
| USAA* | $63 | $149 |
Your insurance credit score is different from the score used for loans and credit cards. Insurance companies focus on things like the amounts you borrow and your payment history.
Insurance companies have to let you know if your credit affects your rate or eligibility for coverage. Insurance companies can’t charge you more if your credit score has been hurt by:
- A major illness or injury
- The death of a spouse, child or parent
- A temporary job loss or recent divorce
- Identity theft
You should let insurance companies know if an event like one of these has harmed your credit. Doing so may help you get a lower rate, according to the Texas Department of Insurance.
Best discounts for low-income Texas car insurance
Discounts for bundling and using a safe-driving app help make low-income Texas car insurance more affordable. Car insurance discounts for good driving and setting up automatic payments can also lower your rate.
Why bundle car insurance?
Most insurance companies offer generous discounts for bundling your car insurance with a home or renters policy. Bundling also gives you the convenience of only having to work with one insurance agent.
It’s good to get quotes for your entire insurance package when you shop. This lets you see each company’s combined rate.
Are safe-driving apps worth it?
Several insurance companies give you another big discount for joining their safe-driver program. Most use a smartphone app to monitor how safely you drive.
You usually get a discount just for signing up. If you drive safely enough, you get additional discounts when you renew. The savings can add up. For example, good drivers can save up to 30% with State Farm’s Drive Safe & Save app.
Just make sure to read the fine print. Some companies raise your rate for bad driving, unless you opt out of the program in time.
What other car insurance discounts can I get?
It’s good to ask the companies you contact about any other insurance discounts they may have. These often include discounts for:
- Good driving: Several companies will give you a discount for not having recent tickets or accidents. Most require a clean record for three years.
- Pay-per-mile insurance: Programs like Allstate Milewise only charge by the mile. These programs can be great for remote workers, stay-at-home parents and retirees.
- Payment plans: Most companies also give you a discount for setting an automatic payment plan. You can often get an even lower rate by paying in full up front.
- Military and employment groups: Geico offers discounts to service members (15%) and federal employees (12%).
Low-income discount comparison
| Discount | Farm Bureau | State Farm | Geico | Allstate | Progressive |
|---|---|---|---|---|---|
| Bunding | |||||
| Safe-driving app | |||||
| Military | |||||
| Federal employee | |||||
| Pay in full | |||||
| Auto pay | |||||
| Pay per mile | |||||
| Good driving |
Coverage requirements for low-income Texas car insurance
Texas has the same 30/60/25 liability car insurance requirements for all income levels. These minimum requirements include:
- Bodily injury liability: $30,000 per person, $60,000 per accident
- Property damage liability: $25,000
If you have a car loan, your lender will also make you get collision and comp.
Texas insurance companies must offer uninsured motorist Uninsured motorist covers you and your passengers for injuries caused by a driver with no insurance. It’s required in about 20 states and optional everywhere else. (UM) and personal injury protection PIP covers injuries to you and your passengers, whether you or another driver causes the accident. It also covers lost wages and certain other expenses. (PIP). You can reject these coverages; however, their low costs make them worth considering, even with a low income.
- UM covers you and your passengers for injuries caused by a driver with no insurance. It adds an average of $12 a month to a minimum coverage policy. UM protection for your car adds $6 to your monthly insurance bill.
- PIP covers injuries to you and your passengers, whether you or the other driver is at fault. It also covers lost wages and other injury-related expenses. It costs an average of $9 a month for up to $5,000 in coverage.
Health insurance also covers medical treatment for car accident injuries. However, most health plans have deductibles and copayments. UM and PIP can protect you from all or some of these out-of-pocket costs.
How to save on full coverage car insurance
If you need full coverage, you can save money by raising your collision and comprehensive deductibles. Dropping full coverage for an older, low-value car helps you save even more.
Since your deductibles come out of your own pocket, you don’t want them to be too high. However, you can save an average of $25 a month by raising them from $500 to $1,000. This adds up to $300 a year. If you’re comfortable with higher deductibles, you can save more.
Monthly full coverage deductible comparisons
| Company | With $500 deductibles | With $1,000 deductibles |
|---|---|---|
| Texas Farm Bureau | $89 | $79 |
| State Farm | $118 | $108 |
| Geico | $151 | $131 |
| AAA | $216 | $188 |
| Progressive | $228 | $172 |
| Allstate | $382 | $348 |
| USAA* | $112 | $97 |
| State average | $185 | $160 |
When to drop full coverage
Collision and comp cover your car at its depreciated value. It’s usually worth having for any car worth more than $5,000, even if you don’t have a loan. However, you may not need full coverage if your car’s resale value drops below this amount.
Dropping collision and comp can save you about $82 to $106 a month on car insurance, depending on your deductibles.
Frequently asked questions
Texas does not have a state-supported program for low-income car insurance. This makes it important to shop around. You’ll get the cheapest rates if you have a clean driving record and good credit. Avoiding late payments and paying down debts can help improve your credit for lower insurance rates.
Texas Farm Bureau has the lowest auto insurance rates for most Texas drivers. Its minimum coverage rates average $40 a month. USAA and State Farm also have low rates. However, USAA is only available to the military community.
Your income does not directly affect the cost of car insurance in Texas. Insurance companies use credit factors like your borrowing amounts and payment history to determine your rate.
Yes. You can get car insurance with bad credit, but it won’t be cheap. On average, drivers with bad credit pay more than twice as much for car insurance as drivers with good credit.
A 30/60/25 liability policy has the lowest amount of car insurance required in Texas. These policies cover injuries and damage you cause to other people or their property. If you have a car loan, your lender will also require collision and comprehensive coverage.