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Texas Car Insurance for Bad Credit Drivers

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Mark Steinbach

By: Mark Steinbach

| Reviewed by licensed insurance agent, Amber Benka

Last Updated March 9, 2022

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Cheapest Companies for Drivers With Bad Credit in Texas (2022)

For drivers with bad credit in Texas, it's important that you evaluate all of your potential insurance options to ensure you are finding the best rate. Comparing the right insurance companies will allow you to get the best possible insurance rate for drivers with bad credit.

To simplify comparing companies, Insurify has analyzed rates from top insurance providers in Texas. The following are the best insurance rates from carriers that offer car insurance for drivers with bad credit in Texas.

Bad Credit Car Insurance in Texas

It's like they say: everything is bigger in Texas. But if you're a Texan with a bad credit score, will your car insurance also come with a bigger price tag?

Unfortunately, Texas is one of many states that take your credit score into account when determining your car insurance rates. Luckily, credit isn't the only factor that goes into calculating your rates. But if you have a checkered credit history, a Texas-based car insurance company could charge you higher prices as a result.

Texas Car Insurance Rates for Bad Credit Drivers

Excellent
$250
Good
$279
Average
$281
Poor
$304

Insurify's comparison tool will help you make sure you're getting the best possible quote even with a bad credit rating. You can have peace of mind you're not paying any more than need to, and customers save $48 per month on average.

How Much Does Bad Credit Impact Car Insurance Rates in Texas?

Drivers in Texas who have bad credit tend to pay just under 10 percent more for car insurance on average. This is another $25 per month, which adds up to $300 more for car insurance per year.

In general, Texas's average car insurance rates are pretty high compared to the rest of the country, so it'll come as a relief that bad credit won't raise your car insurance rate by even 10 percent.

Avg. Monthly Cost - for Drivers with Good Credit
$255
Avg. Monthly Cost - for Drivers with Bad Credit
$280
$25 ▴
9.80% ▴
Monthly Impact of Bad Credit on Rates
Percent Bad Credit Impact Rates

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Can I Get Car Insurance With No Credit Check in Texas?

In Texas, car insurance companies have the right to take a look at your credit score before determining your car insurance rate. So you'll most likely undergo a credit check as you shop for car insurance in Texas.

But if you have a bad credit score, you still have some options. Empower Insurance in Texas is a popular choice that advertises no credit checks. Other drivers might want to see if they can find a major national insurer that tends to offer reasonable rates for drivers with bad credit.

Texas Car Insurance Rates by Credit Tier

In Texas, it looks like the better your credit is, the less you'll pay for car insurance. Those with poor credit pay $304 on average, which is over $50 more than those with excellent credit. Meanwhile, there's only a negligible difference in rates for those with good or average credit.

Credit TierAvg. Monthly Cost
Excellent$250
Good$279
Average$281
Poor$304

Car Insurance Rates With Bad Credit in Texas Cities

As one of the largest states in the country, Texas is home to some major metropolitan areas. And it seems like the bigger the city, the bigger the car insurance price tag. Houston has the highest average rate at $311 per month, while Fort Worth residents pay a much more reasonable $229.

CityCredit TierAvg. Monthly Cost
HoustonPoor$311
San AntonioPoor$244
DallasPoor$280
Fort WorthPoor$229
AustinPoor$253
ArlingtonPoor$239

Tips for Researching Bad Credit Texas Car Insurance Rates

Insurance prices and policies can vary significantly between companies, and a state like Texas draws a wide variety of choices when factoring insurance rates for drivers with bad credit.
Insurify's rate comparison tool will help you make sure you're getting the best possible quote based on your needs and location. You can have peace of mind you're not paying any more than you need to, and customers save $585 per year on average.

Top Auto Insurance Companies

Compare Top Auto Insurance Companies

Use Insurify for all of your car insurance comparison needs! Compare and connect directly with the top insurance companies to find the best rates as well as the most personalized discounts and coverage options. Insurify’s network includes over 200 insurance companies throughout the U.S. who can work with you to get you the right auto insurance policy at the cheapest price. See All Auto Insurance Companies

FAQs - Texas Car Insurance

  • There are many different factors that go into the how expensive your car insurance is. That said, some of the reasons why you could be paying so much for your insurance include: living in a state with high minimum insurance requirements, being a young or new driver, committing past traffic offenses like at-fault accidents or DUIs, and having a low credit score.

  • Auto insurance costs will vary between locations and insurance carriers, depending on the county Texas. Insurify analyzed the latest data for the five most populous cities in Texas to find you the cheapest quotes in each of these metropolitan areas.

  • The way to find the carrier with the best auto insurance ratings in Texas and save on your insurance premiums is to compare quotes from all companies in your area. Use a car insurance quotes comparison site like Insurify to compare up to 10+ real quotes for your specific driver profile and unlock savings and discounts. Rates can fluctuate greatly based on whether you're a safe driver or a high risk one, but you should never overpay. Insurify provides the cheapest car insurance quotes and companies in your area in just a few seconds.

  • During the past three years in the United States, national premium costs have risen an average of 4.5 percent annually. In states where quotes have risen, this figure has been 7.8 percent; and in those where rates have fallen, prices have decreased by approximately 6.0 percent. Individual rates by state will of course vary depending on the driver’s history and a multitude of factors.

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Methodology

The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Mark Steinbach
Mark Steinbach

Content Writer at Insurify

Mark Steinbach is a writer based in Brooklyn, NY. In addition to his years of work as a copywriter, he is also a TV writer with a degree in English from Harvard University. When he isn't writing, he can be found playing tennis or doing crossword puzzles.

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