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Last updated: October 20, 2023

Low-Income Car Insurance in Texas

Your options for cheap car insurance in the Lone Star State

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The average cost of car insurance in Texas, across all cities, ages, sexes, and ZIP codes, was $1,085 in 2020, the last time the National Association of Insurance Commissioners released data. That’s only slightly higher than the national average for the same year, $1,047.

However, for many drivers, finding car insurance they can afford is nearly impossible, especially if they are low-income. While Texas doesn’t provide a state-sponsored affordable insurance option, we can recommend some cheap companies, as well as ways to save money with any insurance provider, no matter which one you end up with.

Car Insurance for Low-Income Drivers

Unfortunately, as mentioned above, Texas doesn’t provide state-sponsored car insurance for low-income drivers specifically, as some other states do. Instead, you’ll have to find Texas car insurance in the private marketplace. In the next section, we’ll provide the cheapest options available so you have an easier time with your search.

Cheap Auto Insurance Companies in Texas

Check out the cheapest car insurance in Texas for a number of situations and demographics. All prices are for the average annual cost of car insurance. The cheapest car insurance company for you may be different once your demographics and other information are factored in, as insurance is never one-size-fits-all.


  • Commonwealth Casualty: $612


Age Company Cheapest average annual cost of car insurance in Texas
16 State Farm $2,780
17 State Farm $2,505
18 State Farm $2,250
19 GEICO $1,834
20s Texas Farm Bureau $843
30s GEICO $379
40s GEICO $377
50s GEICO $361
60s GEICO $351
70s Texas Farm Bureau $841


  • USAA: $424

Bad Credit

  • Clearcover: $612

Married Drivers

  • Commonwealth Casualty: $612

Full Coverage

  • Farmers: $821

Best Car Insurance Companies for Low-Income Drivers

The best auto insurance in Texas for low-income drivers includes companies like the following:

  • Commonwealth Casualty
  • Farmers
  • State Farm
  • Texas Farm Bureau
  • USAA (active-duty military members, veterans, and their families only)


As of Sept. 30, 2021, there were 116,858 active-duty military members and 55,587 National Guard members living in Texas.1 Additionally, there were over 1.5 million veterans, representing about 8 percent of the adult population.2

Minimum Car Insurance Requirements

Requirements in Texas for car insurance are as follows:

  • $30,000 for bodily injury liability coverage per person
  • $60,000 for bodily injury liability coverage per accident
  • $25,000 for property damage liability coverage per accident3

Minimum coverage, which in Texas is only liability insurance, will have the most affordable car insurance rates, but remember that liability coverage pays for injuries and property damages outside of your vehicle only. If you cause an accident, you’ll be responsible for your property damage and the injuries to passengers inside your vehicle out of pocket.

Full coverage car insurance, on the other hand, will mean higher car insurance costs, but it could save you money in the long run if you have any claims.

Penalties for Driving Without Insurance

Thinking of not getting car insurance? Think again. Driving without insurance in Texas is a misdemeanor that could result in fines, vehicle impoundment, a license and registration suspension, and an SR-22 requirement (a form that proves you have minimum coverage).

Penalty by offense number for driving without insurance 1 2 and subsequent
Minimum fine $175 $350
Maximum fine $350 $1,000
3-year surcharge $250 $250
Length of impoundment N/A 180 days
Daily fee for impoundment N/A $15
Minimum charge for impoundment N/A $2,700
Suspension of license/registration until you file an SR-22 No Yes
Duration of SR-22 N/A 2 years
Fee to reinstate license N/A $100

All in all, you might end up paying more for driving without insurance than you would for an insurance policy. Perhaps that’s why Texas’ rate of uninsured motorists is so much lower than the U.S. population — only 8 percent compared to a 12 percent national average.4

More Cost-Saving Tips for Cheap Car Insurance

Aside from getting minimum coverage car insurance, here are some other ways to get cheap car insurance in Texas regardless of your income level:

  1. Raise your collision and comprehensive deductibles.
  2. Lower your limits.
  3. Drop coverages you don’t need, like rental car reimbursement and roadside assistance.
  4. Ask your insurance agent for car insurance discounts.
  5. Enroll in usage-based insurance that bases rates on your driving behaviors and average annual mileage.
  6. Take a defensive driving course or driver safety course. You can get a ticket dismissed by taking a six-hour driving safety course and sending the certificate of completion to your insurance provider and the court.5
  7. Improve your credit score.
  8. Bundle multiple insurance policies, like home and auto insurance, under the same provider.
  9. If you have a high school or college student with good grades in your family, see if your insurance company offers a discount for that.
  10. If you’re thinking of buying a new car, make sure it has high safety ratings with the Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration. Car insurance companies give lower rates to cars that perform better in accidents, as well as cars with features like anti-theft devices. Also, look for a car with low repair costs, as costly repairs increase the cost of auto insurance.
  11. Get a hybrid or electric vehicle, as many insurers offer discounts for these environmentally friendly cars.


Based on the VantageScore model, the average credit score in Texas, as of February 2021, was 674 — 4 percent lower than the national average of 698.6 Research shows that bad credit correlates with a higher likelihood of filing a claim, which is why insurance companies in Texas charge people with bad credit more for the exact same coverage as people with good credit.

Factors That Affect Rates

Insurance companies in Texas base prices on the following factors.

  • Credit score
  • Marital status
  • Sex
  • ZIP code
  • Vehicle make, model, and type
  • Age
  • Driving history, including at-fault accidents, speeding tickets, and DUIs
  • Lapses in coverage

Cheapest Cities in Texas for Car Insurance

The following Texas cities have the lowest costs for car insurance, on average.

City Average annual cost of auto insurance
Marfa $1,368
Sheppard Air Force Base $1,380
Troy $1,380
Presidio $1,392
Abbott $1,404
Alpine $1,404
Burkburnett $1,404
Hewitt $1,404

In contrast, you’re more likely to face the highest rates in cities like Dayton, Amarillo, Houston, Corpus Christi, Frisco, Dallas, and Fort Worth.


Registering a car in Texas requires car insurance, so it’s not optional. If you’re having trouble finding a company offering rates you can afford, call We can shop multiple providers at once and match you with an insurer that wants you as a customer at a cost you can afford.

In the meantime, take advantage of discounts to get the lowest rates from the best low-income auto insurance companies.

Frequently Asked Questions

How can I avoid paying for car insurance in Texas?

The only way to avoid paying for car insurance in Texas is not to have a car. If you want to get a car, registering it requires insurance. You’ll have to pay to insure your car or risk facing the consequences of driving without insurance.

What part of Texas is the cheapest to buy a car?

San Antonio is one of the cheapest places to buy a car in Texas, according to 2022 data from iSeeCars. That year, you could buy a Nissan Rogue in San Antonio for only $22,372, saving you nearly $11,000 compared to other cities.

Is Texas a no-fault state?

Yes, Texas is a no-fault state for car insurance, which means that in an accident, the at-fault driver is responsible for the other party’s property damage, but each party pays for its own medical costs, lost wages, and child care costs under personal injury protection (PIP).

Does insurance follow the car or the driver in Texas?

Insurance follows the car in Texas, not the driver. If you insure a car, anyone driving it with permission and a valid license can be covered by your vehicle’s policy.


  1. State Fact Sheets – Texas. United States Department of Defense. (2023).

  2. Veterans in Texas: A Demographic Study. Texas Workforce Investment Council. (2021).

  3. Auto insurance guide. Texas Department of Insurance. (2023).

  4. One in Eight Drivers Uninsured: $13 Billion Spent in 2016 to Protect Against Uninsured and Underinsured Drivers. Insurance Research Council. (2021, Mar 22).

  5. Taking a course. (2023).

  6. What Is the Average Credit Score by State? Equifax. (2021).