Texas drivers pay higher car insurance rates that the average American. The average cost of Texas car insurance is $1,823 per year for full coverage and $524 for minimum coverage. The average premium for car insurance in the United States for full coverage is $1,674 annually, and $565 for minimum coverage.
Data shows that 15.5% of Texans are below the poverty line. This is higher than the 13.1% national average. You are legally required to have insurance if you own a vehicle registered in Texas. This applies even if you or your family has low income. There are many ways to obtain low-income car insurance in Texas.
Texas low income car insurance
Low income car insurance does not refer to a particular type of insurance. Low income policies can be obtained through state-sponsored programs that are available to those who cannot afford standard coverage. Low income car insurance allows individuals to get the required coverage easier and lowers the number uninsured motorists.
Texas does not have any government-run programs for low-income car insurance. These programs are currently only offered in California, Hawaii, and New Jersey. There are many ways low-income families can purchase policies that are more affordable than the average in Texas.
Comparing quotes from different providers and shopping around for car insurance could help you to find the best deal for you. To lower your rate, you can improve your credit and increase your deductible. You can also reduce your premiums by looking for insurance companies with multiple discounts.
Texas minimum car insurance requirements
In Texas, drivers are required to carry at least 30/60/25 personal insurance is considered minimum coverage. The following are the minimum coverage requirements in Texas:
- $30,000 per person in bodily injury liability insurance
- $60,000 per accident in bodily injury liability coverage
- $25,000 per accident in property damage liability coverage
Low-income drivers in Texas may find a minimum coverage policy appealing if they are looking for a low-cost policy. A minimum coverage policy might not provide enough coverage in the event of an accident involving another vehicle, or passenger. If the accident damages exceed the policy’s limits, you will be responsible for the excess out-of-pocket. A liability-only policy doesn’t provide coverage for your vehicle. This is why collision coverages are so useful.
Each Texas car insurance company charges a different rate. Below is a table that shows the average coverage premiums for popular providers in Texas.
Average Texas car insurance rates based on company
| Car insurance company | Minimum coverage: Average annual premium |
|---|---|
| Allstate | $557 |
| AmTrust Financial | $573 |
| California Casualty | $678 |
| Chubb | $638 |
| Delek | $665 |
| Fred Loya | $449 |
| Geico | $391 |
| Kemper | $669 |
| Mercury | $526 |
| MetLife | $662 |
| All over the country | $499 |
| Sentry | $721 |
| State Auto Insurance | $628 |
| State Farm | $518 |
| USAA | $395 |
| White Mountains | $424 |
The table shows that Geico is the lowest priced Texas car insurance premium at $391 per annum for minimum coverage. Geico has a limited coverage, but the company offers discounts and savings for military personnel and federal employees.
USAA is similar in price but only sells insurance for active duty and retired military personnel. Allstate, Nationwide, and State Farm offer higher minimum coverage premiums but generous discounts.
Low income drivers get discounts on car insurance
Low-income Texas families can get insurance by looking into Texas providers who offer discounts. You may be able reduce your premium by taking advantage of discounts, even if the quote is beyond your budget. These are the top insurance savings tips:
Policy bundling
Many car insurance companies offer policy bundle discounts. This could save you at least 10% on your premium. A policy bundle discount can be claimed if you purchase two or more policies from one provider, usually a home and an auto insurance policy. A discount can be obtained if you insure more than one vehicle.
Driving habits
You may be eligible for a discount on your premium if you have safe driving habits. Companies that offer discounts for completing approved defensive driving courses or being free from claims will be able to give you a discount on your insurance premium. Popular insurance companies offer safe driver rewards programs that are app-based. This program tracks your driving skills via telematics. These programs allow drivers to save money over time by ensuring safe driving habits.
Safety features for vehicles
Vehicle safety features are the last category that offers car insurance discounts. You may be eligible for a lower premium if your vehicle has advanced safety features such as an anti-theft system or airbags. The most insurance companies list the safety features that qualify on their websites.
While the amount of discounts offered to drivers may vary from one company to another, there are usually at least a few that you can take advantage of to lower your premium. For all savings opportunities, check out the auto policy page and discounts pages of any car insurance company you are considering.
Questions frequently asked
Which company has the lowest car insurance rates?
Because every driver has a different rate of car insurance, the cheapest car insurer is different. To calculate your personal premium, insurance companies consider factors such as your credit score, age, claims history, car type, and driving frequency.
Where can I get low-income car insurance?
Only a few states offer low-income car insurance. New Jersey, Hawaii, and California offer state-sponsored plans. However, you must meet certain eligibility requirements to be eligible. You may be able to get lower insurance rates by raising your deductible or paying the full premium if your state doesn’t have one. When you increase your deductible, you are taking on greater financial risk in the event of an accident or claim.
What if you have bad credit and want to get car insurance?
You can still get car coverage with bad credit. You will probably pay a higher premium than the average. It is often beneficial to work on improving your credit score in order to get a lower rate.
What’s the difference between minimum and full coverage?
The type of coverage you have will determine the difference between a minimum coverage policy and a full coverage policy. Minimum coverage policies only include liability insurance. This protects you financially and legally in the event that an accident occurs. Full coverage policies include liability insurance and additional coverages such as collision or comprehensive insurance to protect your vehicle from potential damage. Full coverage policies may also include medical payments and uninsured/underinsured motorist coverage.