Drivers in Texas pay higher auto insurance rates than the average American. the average annual cost of auto insurance in Texas is $ 1,823 for a full coverage policy and $ 524 for a minimum coverage policy. For comparison, the average auto insurance premium in the United States is $ 1,674 per year for full coverage and $ 565 per year for minimum coverage.
The data shows that 15.5% of Texans live below the poverty line, which is above the national average rate of 13.1%. If you own a Texas registered vehicle, you are legally required to purchase insurance, even if your family is considered low income. However, there are several ways to get low income car insurance in Texas.
Low Income Auto Insurance In Texas
Low income auto insurance is not a specific type of auto insurance. On the contrary, low income insurance policies are often available as part of state sponsored programs for people who cannot afford standard coverage. Low-income auto insurance makes it easier for individuals to obtain the coverage required by the state and reduces the number of uninsured drivers on the road.
Unfortunately, Texas does not have a government administered low income auto insurance program. The only states that currently offer these programs are California, Hawaii, and New Jersey. However, low-income Texas families can purchase a more affordable than average policy in a number of ways.
Buying auto insurance and getting quotes from multiple providers could help you find the cheapest policy available for the type and amount of coverage you need. You can also improve your credit score and increase your deductible to help achieve a lower rate. Plus, finding insurance companies that offer multiple discounts that you can take advantage of is a great way to lower average premiums.
Texas Requirements for Minimum Auto Insurance
In Texas, drivers are required to carry at least Liability insurance 30/60/25, which is considered a minimum coverage policy. The minimum coverage in Texas includes the following:
- $ 30,000 in bodily liability coverage per person
- $ 60,000 in civil liability per accident
- Liability coverage for property damage of $ 25,000 per accident
A minimum coverage insurance policy can be attractive to low income Texas drivers looking for a low cost policy. However, a minimum coverage policy may not provide sufficient coverage for most drivers in the event of an accident involving another vehicle or passenger. If you cause an accident and the damage is more than the policy limit, you are responsible for paying the difference out of pocket. Plus, a liability only policy offers no coverage for your own vehicle, which is where other coverages such as collision come in handy.
All auto insurance company Texas charges a different rate for coverage. The table below includes the average minimum coverage premiums from popular providers in Texas.
Average Texas Auto Insurance Rates by Company
|Auto insurance company||Average annual premium for minimum coverage|
|AmTrust Financial||$ 573|
|California victim||$ 678|
|Fred loya||$ 449|
|In all the countries||$ 499|
|State auto insurance||$ 628|
|State farm||$ 518|
|White mountains||$ 424|
Based on the table above, Geico has the cheapest auto insurance premium in Texas at $ 391 per year for minimum coverage. While Geico’s coverage is somewhat limited, the company offers a long list of discounts with savings for military personnel, federal employees, good students, and many more.
The USAA is comparable in price, but it only sells insurance to active and retired military service members. Allstate, Nationwide, and State Farm have more expensive minimum coverage premiums, but they also offer generous discounts.
Auto insurance discounts for low-income drivers
To get insurance for low-income Texas families, look for providers that offer a variety of discounts you can qualify for. Even if you receive a quote that is within your budget, you may be able to significantly reduce your premium by using discounts. Here are some of the most common insurance savings:
Most auto insurance companies offer discounts on bundled policies, which could usually help you save at least 10% on your insurance premium. You can claim a policy bundle discount by purchasing at least two policies from the same provider, typically a home and auto policy. You can also get a discount for having insured more than one vehicle on your policy.
If you adopt safe driving habits, you can usually get a reduction in your insurance premium. Look for companies that offer a reduction for being claim free or for taking an approved defensive driving course. Many popular insurers also offer an app-based secure driver rewards program, which tracks your driving skills using telematics. With these programs, drivers typically save more money on their premium over time while maintaining safe driving habits.
Vehicle Safety Features
The last major category of auto insurance discounts relates to the safety features of vehicles. If your car has advanced safety features, like an anti-theft system, airbags, anti-lock brakes, or lane departure alerts, you can likely qualify for a lower insurance premium. Most insurers list qualifying security features on their website.
While the number of discounts available to drivers varies from company to company, most providers offer at least a few that you can take advantage of to further reduce your premium. When looking for an auto insurance company, you can often check their auto policy page or their discounts page for all the savings opportunities available.
Frequently Asked Questions
Which company offers the cheapest auto insurance?
the cheapest auto insurance company varies because each driver pays a different rate for auto insurance. Insurance companies look at factors like your age, credit score, claim history, type of car you drive, and how often you drive to calculate your personalized premium.
Where Can I Find Low Income Auto Insurance?
There are only a handful of states that offer low income auto insurance. California, Hawaii, and New Jersey offer state-sponsored plans, but you must meet certain eligibility criteria to get coverage. If your state doesn’t have a low-income program, you may be able to get a cheaper insurance rate through discounts, increasing your deductible, and paying your premium in full. Keep in mind that you take more financial risk in the event of an accident or a claim when you increase your deductible.
Can You Get Auto Insurance With Bad Credit?
Yes you can get auto insurance with bad credit. However, you will likely pay a much higher premium than average. Working to improve your credit score is often beneficial in helping you get a lower rate.
What is the difference between full coverage and minimum coverage?
The difference between full coverage and a minimum coverage policy is the type of coverage included. A minimum coverage policy only includes liability insurance, which protects your legal and financial liability in the event of an accident. A comprehensive coverage policy includes liability insurance as well as additional coverages, such as collision and comprehensive insurance to cover potential damage to your vehicle. Comprehensive coverage policies can also include medical payments and coverage for uninsured / underinsured motorists.