Texas Farm Bureau is the best and cheapest option for low-income drivers with good credit scores and a clean driving record. If you have bad credit or violations, Progressive, State Farm and Mercury are often more affordable.
Cheapest Low-Income Car Insurance in Texas
Updated: February 6, 2025
Advertising & Editorial Disclosure
Key Takeaways
Texas doesn’t offer a low-income car insurance program, but affordable plans are available to meet state minimum coverage requirements.
Texas Farm Bureau, Progressive, State Farm and Mercury are the cheapest options for most low-income drivers in the state.
Low-income drivers can save the most on car insurance by comparing providers and exploring discounts.
Cheapest Car Insurance Companies for Low-Income Drivers in Texas
| Texas Farm Bureau | Young Drivers | $36 |
| Texas Farm Bureau | Adults | $28 |
| Texas Farm Bureau | Seniors | $25 |
| Texas Farm Bureau | Drivers With a Speeding Ticket | $28 |
| Progressive | Drivers With a DUI | $53 |
| State Farm | Drivers With an Accident | $46 |
| Mercury | Bad Credit | $57 |
*All rates in this table, except for adults, are based on a modified profile of a 40-year-old driver with good credit and a clean record insuring a 2012 Toyota Camry. The age ranges are 22 to 29 for young drivers, 30 to 59 for adults and 60+ for seniors.
Compare Cheap Low-Income Car Insurance Providers
The table below lets you filter to find the cheapest provider for your driver profile.
Data filtered by:Results filtered by:
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Age Range:30-59
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Driving Record:Clean
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Credit Score:Good
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Coverage Level:State Minimum Liability Only
| Texas Farm Bureau | $28 | $339 |
| State Farm | $36 | $437 |
| Mercury | $40 | $482 |
| Progressive | $49 | $592 |
| AAA Texas | $55 | $658 |
Cheapest Car Insurance for Families With Low Income in Texas
State Farm offers the most affordable low-income car insurance for teens on a family plan, averaging $67 per month for married families and $115 monthly for single-parent household plans. If you add your spouse to your plan, Allstate is the cheapest option.
Data filtered by:Results filtered by:
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Family Type:Married Couple with Teen
| State Farm | $810 | $67 |
| Nationwide | $946 | $79 |
| GEICO | $1,095 | $91 |
| Progressive | $1,189 | $99 |
| Foremost | $1,600 | $133 |
| Allstate | $1,779 | $148 |
*Rates for couples and single parents with teens apply to a 16-year-old driver. Those for a married couple without children are based on a 40-year-old male with good credit and a clean driving record.
Tips to Save On Car Insurance for Low-Income Drivers
Here are some tips to lower auto insurance premiums in Texas:
- 1
Choose minimum coverage
Opting for state-mandated minimum coverage is often the cheapest way to meet legal requirements. However, it provides only basic protection and doesn't cover all expenses if you're in an at-fault accident.
- 2
Compare quotes
Getting quotes from multiple providers helps you find the cheapest option. Use different avenues like provider websites, independent brokers, provider agents and online comparison tools for a comprehensive comparison.
- 3
Look for discounts
Car insurance companies offer various discounts for being a good student, having a safe driving record and being an active-duty military member or veteran. Texas offers a defensive driving course discount, which can be taken online for as low as $25 and save you 10% on auto insurance premiums for at least three years.
- 4
Increase your deductible
Choosing a higher deductible for collision or comprehensive coverage can lower your monthly premium. Ensure you can afford the deductible amount if you need to file a claim.
- 5
Consider pay-per-mile insurance
Pay-per-mile insurance suits low-mileage drivers by combining a low base rate with a per-mile fee, helping you save by paying only for the miles you drive.
- 6
Bundle your policies
Bundling auto insurance with home or renters insurance can lead to significant savings. In Texas, bundling home and auto insurance could save you up to $1,188 annually.
- 7
Get a cheaper car to insure
A car's make, model and year greatly affect insurance costs, as they influence repair and replacement expenses. If you're in the market, choosing a cheaper car to insure, such as an older and more reliable vehicle, can save you hundreds annually on insurance.
Minimum Car Insurance Requirements in Texas
In Texas, drivers must meet the state's minimum car insurance requirements:
- $30,000 in bodily injury liability per person
- $60,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
However, if you're leasing or financing a car, you'll be required to have a split of 100/300/100 liability coverage and comprehensive and collision protection.
WHY MINIMUM COVERAGE MAY NOT BE RIGHT FOR YOU
Minimum car insurance covers only the other driver's expenses if you're at fault in an accident. You'll still be responsible for your car's damage and legal fees. If you drive often and can afford it, consider higher coverage.
Cheap Low-Income Car Insurance in Texas: Bottom Line
Texas Farm Bureau offers the cheapest car insurance for most low-income drivers in Texas. Progressive, State Farm and Mercury may be more affordable for high-risk drivers. Compare as many car insurance providers through as many means as possible to find the best deal.
Low-Income Auto Insurance in Texas: FAQ
Finding affordable car insurance in Texas can be tough for low-income drivers. Here are answers to common questions on how to save.
What is the cheapest car insurance for low-income drivers in Texas?
The cheapest option is usually a minimum coverage policy, but this may not be possible if you're financing or leasing. Texas Farm Bureau offers the lowest rates: $25 monthly for minimum coverage and $52 for full coverage.
Does Texas have a state-supported low-income car insurance program?
Texas doesn't have a state-backed insurance pool assisting low-income drivers with car insurance.
Does your income affect the cost of car insurance in Texas?
Your income doesn't affect your premiums, but age and credit history — which can reflect how you manage your finances — have a significant impact.
How We Chose the Cheapest Car Insurance for Low-Income Drivers
Study Overview
MoneyGeek examined Texas auto insurance rates using data from the Texas Department of Insurance and Quadrant Information Services.
Data Acquisition, Depth and Analysis
MoneyGeek analyzed 328,384 quotes from 14 companies across 370 ZIP codes to determine the average cost of car insurance for drivers with low income in Texas.
Sample Driver Profile
We used a sample driver profile with the following attributes to determine average car insurance rates for low-income drivers in Texas:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
To determine rates for specific driver profiles, we adjusted factors such as age, family status, driving history and credit standing.
Our study defines seniors as 60 or older, young drivers as 22 to 29 and adults as 30 to 59. Married couples with a child include 40-year-old male and female drivers with a 16-year-old teen. Single parents with children are 40-year-old male or female drivers with a 16-year-old teen.
Coverage Levels and Deductibles
Our data shows rates for minimum coverage, which follows Texas' legal requirements and offers affordable options for low-income drivers.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.