How to Find the Cheapest Car Insurance in Texas for Low-Income Drivers (2026)
State Farm offers the cheapest liability car insurance in Texas, averaging $58 per month.
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Written byMandy Sleight
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Mandy SleightInsurance Writer
Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Edited byLequita Westbrooks
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Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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In This Article
Low-income drivers in Texas — people who make less than the federal poverty line —have a unique challenge when it comes to finding affordable car insurance. The guideline for a one-person household is $15,650 and $5,500 per additional household member, according to the U.S. Department of Health & Human Services.[1]
Though Texas doesn’t have a program to help low-income drivers afford car insurance, you still have ways to get cheap coverage regardless of how much you make. For example, a liability-only policy that meets Texas’ minimum requirements is the cheapest option. And many companies also offer discounts to help you save money.
Here’s what you need to know about getting low-income auto coverage in Texas.
Key Takeaways
State Farm is the cheapest insurer for low-income drivers in Texas, with an average monthly premium of $58.
State Farm, GEICO, and Allstate are three of the best insurers for low-income drivers in Texas.
Low-income drivers should compare multiple quotes to find the most affordable car insurance for their coverage needs.
The Cheapest Car Insurance Quotes for Low-Income Drivers in Texas
Texas drivers pay an average of $163 per month for car insurance. Liability coverage — the cheapest policy you can buy — costs an average of $119 per month, according to our research.
But rates can vary widely from company to company. The table below shows the cheapest car insurance companies in Texas and the average monthly rate for each, according to Compare.com data.
The below national rates are estimated rates current as of: Tuesday, February 10 at 11:00 AM PST.
Company  | Average Monthly Premium |
|---|---|
| State Farm | $58 |
| Mile Auto | $75 |
| Progressive | $82 |
| Allstate | $82 |
| GEICO | $97 |
| USAA | $104 |
| Mercury | $113 |
| The General | $123 |
| Dairyland | $123 |
| Root | $123 |
| Commonwealth Casualty | $125 |
| Bristol West | $127 |
| GAINSCO | $131 |
| Nationwide | $131 |
| Clearcover | $135 |
| Sun Coast | $138 |
| AssuranceAmerica | $138 |
| Safeco | $141 |
| Direct Auto | $148 |
| National General | $150 |
| Elephant | $153 |
| Chubb | $177 |
| 21st Century | $204 |
| Liberty Mutual | $261 |
| Foremost | $269 |
We sourced this data by analyzing real quotes from Compare.com's 100-plus partner insurance companies alongside rate filings collected and distributed by Quadrant Information Services. Actual quotes may vary. Data updated on Tuesday, February 10 at 11:00 AM PST.
The cheapest car insurance company in Texas is State Farm, with an average cost of $58 per month.
But these averages above are broad and meant for comparison purposes only. The way to get the best deal is to get personalized car insurance quotes.
Next, we’ll look at a few of the best auto insurers for low-income drivers in Texas.
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The Best Companies for Low-Income Drivers in Texas
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A liability insurance policy is the cheapest type of auto insurance for low-income drivers. Allstate, GEICO, and State Farm are three great options for low-income drivers in Texas who need liability coverage.
| User Reviews | 3.5 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| 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. | $82/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. | $143/mo |
3.5
A solid optionBased on 405 verified guest reviews and ratings
How drivers feel about Allstate
Customers appreciate the insurer's efficient service and knowledgeable agents but find the consistently rising rates and lack of communication to be major drawbacks.
AI-generated from the text of verified reviews collected by Compare.com
How drivers feel about Allstate
Customers appreciate the insurer's efficient service and knowledgeable agents but find the consistently rising rates and lack of communication to be major drawbacks.
AI-generated from the text of verified reviews collected by Compare.com
Reviews (172)
Niccole
Verified Review
Another Deductible!
Reviewed in South Carolina on January 27, 2026
Any time you have a service, whether it’s a locksmith or tow company, you have to take before and after pictures because every state does not require the preferred provider to submit before and after pictures. The policyholder can and will be required to pay the deductible.
Larry
Verified Review
Good
Reviewed in California on January 15, 2026
I looked at four other insurance companies, and Allstate was approximately the same price as all of them. I have only been with Allstate for three days, so I don't have any experience with them yet.
Charles
Verified Review
After updating my profile, I saved $170.00 a month on the same policy.
Reviewed in Alabama on January 14, 2026
Always check to be sure you are getting the best price they offer.
J.D. Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
646NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.02AM Best
AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A-Why we picked this company
Allstate has many local agents in Texas, making it easier for low-income drivers to get personalized service. It also offers optional coverages like rideshare insurance, insures high-risk drivers, and has a decent amount of discounts available.
Safe drivers could save even more with Allstate’s Drivewise telematics program. Still, you could see rate increases for risky driving behaviors like using your phone, braking suddenly, and speeding.
| User Reviews | 4.1 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.6 /5 |
| 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. | $97/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. | $182/mo |
4.1
Best choiceBased on 572 verified guest reviews and ratings
How drivers feel about GEICO
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
AI-generated from the text of verified reviews collected by Compare.com
How drivers feel about GEICO
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
AI-generated from the text of verified reviews collected by Compare.com
Reviews (259)
Meng
Verified Review
They Have Better Deals
Reviewed in South Carolina on February 4, 2026
Nice insurance company. They didn't mess up anything and gave me what I needed.
Dwight
Verified Review
My Insurance Life: A Relatively Eye-Opening Experience!
Reviewed in New York on January 30, 2026
My experience has been good and bad. You must be vigilant about what you need and want. And if you are of a certain age, you should pay accordingly!
Mary
Verified Review
Rental
Reviewed in Tennessee on January 25, 2026
They won't honor a rental when you send documents to them after having a flat tire and damaging the rim. I had rental insurance.
J.D. Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
653NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.59AM Best
AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
GEICO may be a good fit for low-income drivers in Texas who need full coverage. It offers mechanical breakdown coverage, which only a few insurers offer. This works like a warranty — covering vehicle engine failures that insurance policies typically don’t cover — and is often cheaper than buying an extended warranty.
GEICO also has plenty of available car insurance discounts to lower its already affordable rates and 24/7 customer support through its mobile app, online, or chat.
Pros
Plenty of discounts
Mechanical breakdown insurance available
Potential savings with DriveEasy
Cons
Below-average J.D. Power digital experience score
Pay-per-mile insurance not available
Few local agents
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.7 /5 |
| 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. | $58/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. | $102/mo |
3.9
A solid optionBased on 684 verified guest reviews and ratings
How drivers feel about State Farm
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
AI-generated from the text of verified reviews collected by Compare.com
Best For
How drivers feel about State Farm
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
AI-generated from the text of verified reviews collected by Compare.com
Best For
Reviews (310)
Michelle
Verified Review
Can't beat them!
Reviewed in Minnesota on January 31, 2026
Good options and deductibles, awesome customer service, and responsive to questions.
Arthur
Verified Review
The Save & Drive Pod Doesn't Save Much
Reviewed in Illinois on January 25, 2026
Not sure where to place the Drive Safe app on the fob in the vehicle. One month I save a little, the next month it's up again. I don't drive every day like most. I'm retired and have this new truck, which I don't see ever putting on the national average miles. I may drive it once or twice a month. Yet my savings don't reflect that. I've been insured with State Farm since I was 17. I'm 62. I should be saving a lot more.
Joann
Verified Review
Not good at all
Reviewed in Georgia on January 22, 2026
Bad customer service, no discounts, overpriced, and they do not care about their customers. My mom had been with them for 56 years, and they would not assist her or give her time to get the information she needed. They talked really horribly to her. I got coverage for 3 cars for less than the amount they were charging me for 3. I have no tickets or DUIs, and they gave me no discounts. I will never use their service again or refer anyone I know.
J.D. Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
654NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.84AM Best
AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
State Farm ranks as one of the top insurers in the Texas region in the J.D. Power 2024 U.S. Auto Insurance Study. It also receives above-average ratings for claims satisfaction and digital service.
Texas drivers have plenty of discounts to choose from. Whether you’re looking for a basic liability policy or full coverage, State Farm may be a good fit for cheap car insurance.
Minimum Car Insurance Requirements in Texas
)
Texas requires all drivers to have liability insurance, which covers injuries or property damage you cause to others in an accident you cause.
The Lone Star State’s minimum car insurance requirements are:[7]
$30,000 per person for bodily injury liability
$60,000 per accident for bodily injury liability
$25,000 per accident for property damage liability
Though the minimum insurance limits are all you need to drive legally, it could cost you more in the long run. Texas is a “fault” state, meaning someone can sue you if your insurance coverage isn’t enough to cover their injuries or vehicle damage.
For example, let’s say you rear-end another vehicle, injuring the other driver. If their medical bills total $45,000, you’d owe an additional $15,000 out of pocket. If the driver’s car has extensive damage above your limits, you’d be responsible for that, too. And if you don’t pay up, the driver could also sue you for the full amount.
Even if you have a low income, it may still be worth paying a little extra for higher liability limits to reduce your potential out-of-pocket costs.
Other car insurance coverages to consider
You should also consider comprehensive and collision insurance if you can’t afford to fix or replace your car after an accident. Collision covers damage from other vehicles and single-vehicle rollovers, while comprehensive covers non-collision claims, like fire, theft, and hitting an animal.
If you finance or lease your car, your lender will require these coverages, which are part of a full-coverage policy. You can save money by increasing your deductible., but be sure you can afford the additional cost if you have to file a claim.
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Car Insurance Discounts for Texas Drivers
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One of the easiest ways for low-income drivers to get affordable insurance in Texas is to add discounts to their policies, which most companies offer.
Here are a few discounts you might qualify for:
Bundling: You can get a multi-policy discount by insuring your car and home or renters insurance with the same company.
Defensive driver course: Complete a Texas-approved defensive driving course to get a defensive driver course discount.
Safe driver: Keep a clean driving record by avoiding tickets and accidents to qualify for a safe driver discount.
Vehicle safety: Owning a vehicle with features like airbags, anti-lock brakes, or traction control could earn you a safety features discount.
Paperless: Opt for electronic insurance policy documents to get a paperless discount.
Low-Income Car Insurance in Texas FAQs
The answers to common questions about low-income car insurance in Texas may help you find affordable insurance.
Which company has the cheapest car insurance company in Texas?
State Farm is the cheapest car insurance company in Texas. Its average cost is $58 per month for liability and $102 per month for full coverage, according to Compare.com data.
Why is car insurance so expensive in Texas?
Texas car insurance costs are higher than the national average for several reasons, including high vehicle repair costs, severe weather, and high accident rates.[8] Keep in mind that personal factors, such as your driving history, credit history, and age, can also increase your costs.
How can you get cheaper car insurance in Texas?
You can get cheaper car insurance in Texas in a few ways. Start by shopping around to compare rates from multiple companies to get the cheapest rate. And make sure to buy only the coverage you need, especially if you drive a paid-off older vehicle.
It’s also a good idea to ask your insurance agent about discounts you may be eligible for. If your credit is low, you can work on improving your credit.
What’s the lowest form of car insurance required in Texas?
State-minimum coverage is the cheapest form of car insurance Texas drivers need to drive legally. Texas requires $30,000 per person and $60,000 per accident for bodily injury liability insurance and $25,000 per accident for property damage coverage.
While some low-income drivers may only need the state minimum, drivers with more assets should consider higher liability limits for greater financial protection.
Methodology
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Sources
- Assistant Secretary for Planning and Evaluation (ASPE). "HHS Poverty Guidelines for 2025."
- Jdpower.com. "2024 U.S. Insurance Digital Experience Study."
- Ambest.com. "AM Best Affirms Credit Ratings of The Allstate Corporation and Core Subsidiaries; Downgrades Ratings on Certain Subsidiaries."
- Naic.org. "Consumer Insurance Refined Search Results."
- Jdpower.com. "2024 U.S. Auto Claims Satisfaction Study."
- Trustpilot. "State Farm."
- Texas.gov. "Auto insurance guide."
- Office of Public Insurance Counsel. "Why Are Insurance Rates Increasing in Texas?."
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)
Mandy SleightInsurance Writer
Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.