Cheapest Car Insurance for Low-Income Drivers in Texas (2026)

The exact definition of a “low-income driver” can vary. But in general, low-income families are those with earnings that fall below the U.S. Department of Health and Human Services’ poverty guidelines. For 2024, a person with an annual income of $15,060 or below is considered a low-income earner, while the annual threshold for a family of five is $36,580.^[1]

If you’re a low-income Texas driver, you have options for finding cheaper car insurance rates. The Lone Star State doesn’t subsidize auto coverage for its low-income drivers, but it only requires drivers to obtain liability coverage, which is much cheaper than full coverage. Many companies also provide discounts that can reduce your insurance rates.

Here’s what you should know about comparing quotes and finding car insurance for low-income earners in Texas.

Cheapest low-income car insurance in Texas

Drivers in Texas pay an average cost of $118 per month for liability-only insurance and $208 per month for full-coverage car insurance, according to Insurify data. While State Farm has the cheapest liability rates on average, other insurance companies may also offer coverage that aligns with your budget.

Here are some of the cheapest car insurance companies in Texas.

The below rates in Texas are estimated rates current as of: Sunday, March 1 at 11:00 AM PST. 

Insurance Company	Average Quote: Liability Only	IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
State Farm	$57	9.3
Mile Auto	$74	8.8
Progressive	$80	8.7
Allstate	$81	8.9
GEICO	$95	9.2
USAA	$102	9.1
Mercury	$112	7.5
First Acceptance	$115	0.0
Lone Star	$117	0.0
Alinsco	$118	0.0
Dairyland	$120	7.7
Freedom National	$121	0.0
Root	$121	7.9
Commonwealth Casualty	$122	6.1
The General	$123	7.1
Bristol West	$125	6.7
Mendota	$126	0.0
Covercube	$127	0.0
GAINSCO	$127	7.9
Nationwide	$129	9.0
AssuranceAmerica	$135	5.8
Clearcover	$135	7.1
Sun Coast	$138	0.0
Excepsure	$138	0.0
Safeco	$141	8.1
Direct Auto	$146	8.3
National General	$146	7.0
Loop	$147	0.0
Elephant	$150	8.6
Trexis One	$158	0.0
Hugo	$169	6.3
Chubb	$174	7.1
Insurify Car	$194	0.0
21st Century	$201	7.3
Liberty Mutual	$262	7.7

Disclaimer: Table data sourced from real-time Texas car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Texas may vary based on the policy buyer's unique driver profile.

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Best car insurance for drivers with a low income in Texas

Liability-only insurance is the cheapest form of car insurance. But it offers less protection than a full-coverage policy, which typically includes liability insurance, comprehensive insurance, and collision insurance.

For example, liability coverage won’t pay for your injuries or damage to your car if you’re at fault in a motor vehicle accident or if a tree limb hits your car’s roof. It only covers damages to another person or their vehicle if you’re at fault in an accident.^[2]

If you’re seeking cheap liability coverage, it’s worth getting a quote from State Farm, GEICO, and Allstate.

State Farm: Best for customer satisfaction

customer satisfaction

Compare Quotes

User Reviews	4.0 7,164 reviews
IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.	9.3 /10
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.	$57/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.	$101/mo

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Driver Reviews

4.0

Best choice in TexasBased on 15,707 verified driver reviews and ratings

How drivers feel about State Farm

Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.

AI-generated from the text of verified reviews collected by Insurify

Best in Texas for

Customer service

Competitive rates

Discounts for safe drivers

How drivers feel about State Farm

Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.

AI-generated from the text of verified reviews collected by Insurify

Best in Texas for

Customer service

Competitive rates

Discounts for safe drivers

Showing 75 reviews from Texas drivers - See all 7,164 State Farm reviews

William

Verified Review

The price only goes up, never down or stays the same. They do not take care of people who have been with them for years. I was with them for over 20 years, and all they did was raise the premium every 6 months.

Reviewed in Texas on March 2, 2026

The price only goes up, never down or stays the same. They do not take care of people who have been with them for years. I was with them for over 20 years, and all they did was raise the premium every 6 months.

Paul

Verified Review

Helpful agents over the 60 years of having coverage with State Farm.

Reviewed in Texas on March 1, 2026

I have not had any claims in recent years. No problems over the years when there was a claim.

Percy

Verified Review

Excellent service and coverage

Reviewed in Texas on February 28, 2026

Excellent, friendly, and professional.

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JD Power

J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.

657

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

0.84

A.M. Best

A.M. 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

Each year, data analytics and consumer intelligence company J.D. Power releases an auto insurance study. This study is primarily focused on customer satisfaction. For 2023, State Farm ranks among the top insurance companies in Texas for customer satisfaction.

Not only that, but this insurer also offers cheap liability coverage, especially for teen drivers and older adults. If you want a hassle-free auto insurance experience and coverage that aligns with your budget, State Farm could be worth a look.

Pros

• Above-average J.D. Power customer satisfaction rating in Texas

• Large network of local insurance agents

• Some of the cheapest liability coverage in Texas

Cons

• Gap insurance not available

• Negative customer reviews on Trustpilot

• Fewer discounts than some competitors

GEICO: Best for military families

military families

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User Reviews	4.0 7,412 reviews
IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.	9.2 /10
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.	$95/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.	$181/mo

Show Details

Driver Reviews

4.0

Best choice in TexasBased on 15,938 verified driver reviews and ratings

How drivers feel about GEICO

Customers appreciate the reliability and customer service but find the rates to be high and increase frequently, even without claims or accidents. The app has improved, but some find the claims process lacking.

AI-generated from the text of verified reviews collected by Insurify

Best in Texas for

Teen drivers

Cheap rates

Accident forgiveness

How drivers feel about GEICO

Customers appreciate the reliability and customer service but find the rates to be high and increase frequently, even without claims or accidents. The app has improved, but some find the claims process lacking.

AI-generated from the text of verified reviews collected by Insurify

Best in Texas for

Teen drivers

Cheap rates

Accident forgiveness

Showing 75 reviews from Texas drivers - See all 7,412 GEICO reviews

Jeanette

Verified Review

Too much $$$

Reviewed in Texas on March 2, 2026

Started out well, but the price increased regularly with no claims, no accidents, and no tickets. It more than doubled in 8 years!

Zee

Verified Review

Expensive but probably a good insurance

Reviewed in Texas on February 25, 2026

It is very expensive; the Geico Auto help is very good.

Tom

Verified Review

Understand what you bought before you sign

Reviewed in Texas on February 25, 2026

Make sure they explain the policy thoroughly before you sign!

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JD Power

J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.

637

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

0.59

A.M. Best

A.M. 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

Veterans account for nearly 7% of the total population in Texas, and with 15 military installations, the state is also home to countless active-duty service members.^[3] As a token of gratitude for serving the country, GEICO offers an exclusive car insurance discount of up to 15% for military members and veterans. 

While State Farm’s coverage might be slightly cheaper, GEICO’s affiliation discount could tip the scales in terms of cost. It’s worth getting a quote from GEICO if you’re in the military and seeking new car insurance coverage.

Pros

• Many available discounts

• 24/7 customer service

• AM Best financial strength rating of A++ (Superior)

Cons

• Below-average J.D. Power customer satisfaction rating in Texas

• Few local agents

• Pay-per-mile insurance isn’t available

Allstate: Best for discounts

discounts

Compare Quotes

User Reviews	3.8 4,262 reviews
IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.	8.9 /10
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.	$81/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

Show Details

Driver Reviews

3.8

A solid option in TexasBased on 9,382 verified driver reviews and ratings

How drivers feel about Allstate

Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.

AI-generated from the text of verified reviews collected by Insurify

Best in Texas for

Accident forgiveness

Wide availability

Cheap rates

How drivers feel about Allstate

Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.

AI-generated from the text of verified reviews collected by Insurify

Best in Texas for

Accident forgiveness

Wide availability

Cheap rates

Showing 75 reviews from Texas drivers - See all 4,262 Allstate reviews

Pamela

Verified Review

Satisfied

Reviewed in Texas on February 27, 2026

Affordable

William

Verified Review

Bad assistance during a flood

Reviewed in Texas on February 26, 2026

Very disappointed in how they acted after a flood in Conroe, TX. They did okay, but when there was an issue with a flatbed truck you sent that caused some driveway damage, they did not help me at all!

Donald

Verified Review

Allstate reps are customer caring and honest.

Reviewed in Texas on February 24, 2026

Consider Allstate coverage as a good deal.

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JD Power

J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.

636

NAIC Index

Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.

1.02

A.M. Best

A.M. 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 offers a broad range of discounts, including a good student discount that could help lower young drivers’ insurance costs. Texas drivers can save for having specific car features, such as anti-lock brakes and anti-theft devices. This insurer also offers several discounts related to on-time payments and safe driving, making it a good choice if you have a clean driving record. 

Pros

• More available discounts than many competitors

• AM Best financial strength rating of A+ (Superior)

• Large network of local insurance agents

Cons

• Pay-per-mile insurance isn’t available in Texas

• Below-average J.D. Power customer satisfaction rating in Texas

• Not the cheapest coverage available

Cheapest car insurance for drivers with poor credit in Texas 

While it’s illegal for insurers in some states to consider your credit history when calculating your insurance rates, this practice is legal in Texas. Drivers with poor credit often pay more for car insurance, as insurers may view them as more likely to file a claim. 

By contrast, drivers with good or excellent credit often get lower rates. Other factors also affect the cost of car insurance, like your city, age, and ZIP code.

Here’s a quick cost comparison for how much Texas drivers with good credit and poor credit pay each month for a liability policy.

The below rates in Texas are estimated rates current as of: Sunday, March 1 at 11:00 AM PST. 

Insurance Company	Average Quote: Good Credit	Average Quote: Poor Credit
State Farm	$56	$82
Mile Auto	$73	$91
Progressive	$78	$100
Allstate	$80	$100
GEICO	$93	$117
USAA	$100	$124
Mercury	$110	$137
First Acceptance	$112	$144
Lone Star	$114	$146
Alinsco	$115	$148
Dairyland	$116	$148
Freedom National	$118	$151
Commonwealth Casualty	$118	$150
Root	$118	$149
The General	$119	$152
Bristol West	$123	$154
Mendota	$123	$158
GAINSCO	$123	$157
Covercube	$124	$159
Nationwide	$127	$159
AssuranceAmerica	$131	$166
Clearcover	$132	$166
Sun Coast	$135	$173
Excepsure	$135	$173
Safeco	$137	$174
Direct Auto	$142	$180
National General	$142	$180
Loop	$144	$184
Elephant	$145	$185
Trexis One	$154	$198
Hugo	$159	$208
Chubb	$169	$279
Insurify Car	$189	$243
21st Century	$197	$248
Liberty Mutual	$255	$314

Disclaimer: Table data sourced from real-time Texas car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Texas may vary based on the policy buyer's unique driver profile.

Minimum car insurance requirements in Texas

Texas requires drivers to obtain the following car insurance coverages in order to be roadworthy:^[4]

• 

  Bodily injury liability

  • $30,000 per person

  • $60,000 per accident

• 

  Property damage liability

  • $25,000

Your liability insurance will pay out if you’re at fault in a car accident that results in damage to another person’s vehicle or personal property. It’ll also pay for their medical bills if they’re hurt in the accident.

A liability-only policy could be sufficient if you drive an older or high-mileage vehicle, though it doesn’t offer as much protection as full-coverage insurance. Likewise, opting for minimum coverage might save you money, but it could put you at risk if you get into an accident and the related expenses exceed your coverage limits.

Shop for a Liability-Only Policy in Texas

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State-sponsored car insurance in Texas

Unfortunately, the Texas government doesn’t subsidize car insurance costs for low-income drivers, and the state’s car insurance rates are on the high side compared to other U.S. states.

The best way to find an inexpensive auto policy in Texas is to shop around, get quotes from several different car insurance companies, and take advantage of as many discounts as possible.

Car insurance discounts for low-income Texas drivers

Discounts are another great way to save some money on your auto policy. Here are some common ones to look for:

• 

  Bundling discount

  You can often get a discount if you bundle multiple insurance products, such as auto and homeowners insurance, from the same company.

• 

  Vehicle safety feature discount

  Many insurers also offer discounts for certain vehicle safety features, like anti-lock brakes or car alarms.

• 

  Good student discount

  If you’re a student, you might be able to save on your car insurance by maintaining a certain GPA.

• 

  Safe driver discount

  Drivers with clean records often get the best insurance rates, and you could get additional savings if you remain accident-free for a set time period.

• 

  Responsible payment discount

  Insurance companies may give you a discount if you opt for automatic payments, pay your premium in full, or avoid missing payments for a set time period.

Low-income car insurance in Texas FAQs