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Professor of Risk Management
25+ years in insurance
Former commercial lines underwriter
Updated
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.
State Farm is the cheapest insurer for low-income drivers in Texas, with an average monthly premium of $56.
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.
Texas drivers pay an average of $165 per month for car insurance. Liability coverage — the cheapest policy you can buy — costs an average of $117 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.
Company  | Average Monthly Premium |
|---|---|
| State Farm | $56 |
| Allstate | $79 |
| Mile Auto | $81 |
| Progressive | $81 |
| GEICO | $89 |
| USAA | $99 |
| Mercury | $109 |
| First Acceptance | $111 |
| The General | $114 |
| Alinsco | $117 |
| Lone Star | $119 |
| Commonwealth Casualty | $124 |
| GAINSCO | $124 |
| Nationwide | $125 |
| Clearcover | $127 |
| Bristol West | $128 |
| Covercube | $130 |
| Dairyland | $130 |
| Root | $130 |
| Mendota | $134 |
| AssuranceAmerica | $136 |
| Excepsure | $138 |
| Sun Coast | $138 |
| Safeco | $141 |
| Direct Auto | $144 |
| National General | $148 |
| Loop | $150 |
| Elephant | $153 |
| Chubb | $169 |
| Trexis One | $174 |
| 21st Century | $195 |
| Insurify Car | $197 |
| Hugo | $199 |
| Liberty Mutual | $233 |
| Foremost | $274 |
The cheapest car insurance company in Texas is State Farm, with an average cost of $56 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.
Compare quotes side-by-side and lock in cheaper rates.
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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 | 3.8 |
|---|---|
| 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. | $74/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. | $147/mo |
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.9 | 3.6 |
| Discounts | 3.6 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.6 | 2.9 |
Customers appreciate the insurer's efficient service and knowledgeable agents but find the consistently rising rates and lack of communication to be major drawbacks.
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 | 4.0 |
|---|---|
| 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. | $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. | $149/mo |
GEICO's score | Industry average | |
|---|---|---|
| Coverage options | 3.9 | 3.2 |
| Customer service | 4.1 | 3.6 |
| Discounts | 3.6 | 2.9 |
| Policy transparency | 3.8 | 3.1 |
| Value | 3.6 | 2.9 |
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
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.
Plenty of discounts
Mechanical breakdown insurance available
Potential savings with DriveEasy
Below-average J.D. Power digital experience score
Pay-per-mile insurance not available
Few local agents
| User Reviews | 4.0 |
|---|---|
| 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. | $54/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. | $106/mo |
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 3.9 | 3.2 |
| Customer service | 3.9 | 3.6 |
| Discounts | 3.6 | 2.9 |
| Policy transparency | 3.7 | 3.1 |
| Value | 3.6 | 2.9 |
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.
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.
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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.
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.
Compare personalized quotes from Texas’s top insurers.
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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.
The answers to common questions about low-income car insurance in Texas may help you find affordable insurance.
State Farm is the cheapest car insurance company in Texas. Its average cost is $56 per month for liability and $110 per month for full coverage, according to Compare.com data.
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.
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.
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.
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.
Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Professor of Risk Management
25+ years in insurance
Former commercial lines underwriter
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