Cheapest Texas Car Insurance for Low-Income Drivers

Cheapest Texas Car Insurance for Low-Income Drivers

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Car insurance is mandatory in Texas, and if you're a low-income driver, you may be inclined to buy the bare-minimum car insurance to save on your monthly premium. But even for a minimum policy, rates can vary greatly by insurance company.

In fact, the average annual cost of the most affordable car insurance company in Texas is more than $1,400 cheaper than the most expensive.

Read on to see our analysis of the cheapest companies for low-income drivers and their families in the Lone Star State.

Cheapest Texas companies for low-income car insurance

On average, the cheapest car insurance company in Texas is USAA, but only current and former military members and their families will be eligible. Its policies cost an average of $34 per month for our sample drivers.

Fred Loya Insurance is the cheapest company without eligibility requirements. Its policies cost an average of $45 per month.

These rates are for a policy that only meets Texas state requirements.

This graph shows the four cheapest insurers in Texas for low-income drivers

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If you're a lower-income car owner, the Texas requirement to buy car insurance could put a dent in your budget, especially if you have a policy with a more expensive car insurer. For example, suppose our sample driver had an income of $24,000 per year — or $2,000 per month — after taxes.

  • With a policy from Loya or USAA, this driver would spend 2% of their income on car insurance.
  • But with an Allstate or MetLife policy, the driver would spend 6% to 8% of their income just on car insurance.

Below, we've ranked the average monthly cost of a minimum-coverage policy for the nine insurers sampled in our research, from cheapest to most expensive. We also note how much someone would need to dedicate to car insurance if they earned $2,000 a month after taxes.

If you're looking for a policy with more coverage than the Texas required minimum, you can reference our page on the cheapest car insurance in Texas to see how insurer rates change when you add more protection to your policy.

Monthly rate
Insurance share of $2,000 monthly income
1Fred Loya Insurance$452%
2State Farm$513%

*USAA is only available to current and former military members and their families. The sample budget is for a driver who earns $2,000 per month after taxes.

Best Texas car insurance company for low-income drivers

The best option for low-income drivers in Texas may simply be what they can afford. But the cheapest companies are not always the best. If you're willing to pay a bigger share of your budget for a better service experience with your insurer, you might want to consider an insurer with a strong customer service reputation.

For example, Chubb is relatively affordable in Texas: It costs an average of $63 per month, only $18 more than Fred Loya Insurance. But measured by the rate of customer complaints, Chubb has a great service reputation; much better than Fred Loya. In fact, Fred Loya has the highest rate of customer complaints among our sample insurers.

Low-income drivers who value customer service and can afford to spend more per month on car insurance should balance these trade-offs. If you feel it's worth paying an extra $20 per month to get measurably better service, then consider your options.

Market share
Complaint Index
1Farmers Insurance6.7%0.16
3Travelers (Consumers County Mutual)1.9%0.34
6Berkshire Hathaway Inc.11.5%0.41
7Texas Farm Bureau Insurance2.8%0.42
8Allstate Corp.10.3%0.6
9State Farm12.2%0.69
12Liberty Mutual4.1%0.93
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Companies are ranked by the rate of customer complaints, measured by the Complaint Index calculated by the National Association of Insurance Commissioners. A low Complaint Index means a company is more likely to have good customer service.

Minimum car insurance coverage requirements in Texas

Texas has the same minimum car insurance coverage requirements for every driver. Texans must buy coverage with at least the following limits:

  • Bodily injury (BI) liability insurance: $30,000 per person/$60,000 per accident
  • Property damage (PD) liability insurance: $25,000 per accident

If you're a low-income driver and are simply looking for savings, a policy with minimum state requirements will be the cheapest you can buy. But you should note that liability insurance with these limits may not offer sufficient protection in the event of a major accident. And liability insurance won't cover damage to your car; you'll need comprehensive and collision insurance for that.

While Gap insurance is not required by law, it can be a good investment, especially if you just bought a new car. You can learn more in our article on how does gap insurance work in Texas?


Rates were drawn for nine companies in thousands of Texas cities. Our sample driver was a 30-year-old man driving a 2015 Honda Civic EX. Unless noted otherwise, rates were for this driver, who had a below-average credit record and was quoted for a minimum-coverage policy.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.