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. If you're a low-income driver, you may be inclined to save money by purchasing the bare-minimum car insurance, but we've found that rates can vary greatly from one insurance company to the next, even for a minimum policy. In fact, the difference between the most expensive and the most affordable average car insurance in Texas is more than $1,400 a year.

Below, you'll find our analysis on the cheapest insurance coverage for low-income drivers and their families in the Lone Star State.

Cheapest companies for low-income car insurance in Texas

On average, the cheapest car insurance company in Texas is USAA, with policies averaging as low as $34 a month for our sample drivers. But USAA is only available to current and former military members and their families.

Fred Loya Insurance is the cheapest company with no eligibility requirements, with policies that 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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For low-income drivers, buying Texas-required car insurance could put a dent in your budget, especially if you go through a more expensive car insurer.

For example, suppose you earn an income of $24,000 per year — or $2,000 per month — after taxes. With Loya or USAA you'd spend 2% of your income on car insurance, but with Allstate or MetLife you'd spend 6% to 8% of your income on car insurance.

Below, we've ranked the nine insurers sampled in our research from cheapest to most expensive monthly average. We also note how much income a driver would dedicate to car insurance if they earned $2,000 a month after taxes.

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.

Looking for a policy with more coverage than the Texas required minimum? Check out our breakdown of the cheapest car insurance in Texas to see how rates change when you add more protection to your policy.

Best car insurance company for low-income drivers in Texas

Low-income drivers in Texas may not have a lot of options when it comes to affordability. But the most affordable insurance companies are not always the best. If you're willing or able to pay a bigger share of your budget for a better service experience you might want to consider choosing an insurer with a strong customer service reputation.

For example, Chubb is relatively affordable in Texas: It costs an average of $63 per month, which is just $18 more than Fred Loya Insurance. But based on customer complaints, Chubb has a great service reputation and is a much better choice 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 around $20 more per month on car insurance should consider these trade-offs.

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 carry coverage with the following limits, at minimum:

  • 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.

Liability insurance won't cover damage to your car; you'll need comprehensive and collision insurance for that. And while gap insurance is not required by law, it can be a good investment, too. Especially if you just bought a new car, or if your vehicle is underwater — meaning it's worth less than the balance you owe on your car loan.


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.