The words “low-priced” and “insurance” really shouldn’t be used together, in particular when you are looking for the cheapest car insurance for low income drivers. Because it’s not cheap, let’s start the ball rolling by going over some of the factors that have an effect on car insurance premiums, and see if you can reduce the price of your next policy.
For poor drivers, one of the more important things that aid in calculating auto insurance rates is where you keep your vehicle. More densely populated places tend to have higher rates, whereas less populated areas tend to receive cheaper rates.
The next table sorts the most expensive cities in Texas for low income drivers to purchase car insurance in. Houston ranks #3 with an annual rate of $1,853 on average, which is about $154 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Dallas | $1,855 |
| 3 | Houston | $1,853 |
| 4 | Brownsville | $1,851 |
| 5 | Laredo | $1,851 |
| 6 | Mesquite | $1,825 |
| 7 | Amarillo | $1,804 |
| 8 | Grand Prairie | $1,793 |
| 9 | Garland | $1,778 |
| 10 | Pasadena | $1,758 |
| 11 | San Antonio | $1,739 |
| 12 | Lubbock | $1,733 |
| 13 | Beaumont | $1,720 |
| 14 | Irving | $1,719 |
| 15 | Arlington | $1,692 |
| 16 | Carrollton | $1,664 |
| 17 | Austin | $1,659 |
| 18 | Fort Worth | $1,621 |
| 19 | Corpus Christi | $1,620 |
| 20 | El Paso | $1,616 |
| 21 | McKinney | $1,609 |
| 22 | Plano | $1,608 |
| 23 | Abilene | $1,561 |
| 24 | Waco | $1,537 |
| 25 | Killeen | $1,533 |
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Premium costs are approximated as zip code location can lower or raise auto insurance rates substantially.
Locating low-cost car insurance is confusing at best, and figuring out which company quotes the most affordable car insurance rates for low income drivers takes even more work.
Every auto insurer uses different criteria for establishing rates, so we’ll go over the car insurance companies that tend to have lower prices in Houston.
Lowest Insurance Price Quotes in Texas
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,052 |
| 2 | USAA | $1,128 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,282 |
| 5 | Esurance | $1,365 |
| 6 | California Casualty | $1,424 |
| 7 | State Farm | $1,450 |
| 8 | Mercury | $1,521 |
| 9 | Nationwide | $1,553 |
| 10 | Safe Auto | $1,613 |
| 11 | Progressive | $1,698 |
| 12 | Allstate | $1,701 |
| 13 | Amica | $1,723 |
| 14 | Home State | $2,071 |
| 15 | GEICO | $2,156 |
| 16 | Encompass | $2,232 |
| 17 | Unitrin | $2,241 |
| 18 | MetLife | $2,249 |
| 19 | 21st Century | $2,396 |
| 20 | Titan | $2,672 |
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Travelers offers some of the most affordable car insurance rates in Houston at around $1,052 per year. This is $852 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the more affordable Houston, TX car insurance companies.
In the above example, if you are currently insured with Germania Mutual and switched to USAA, you might achieve a yearly savings of around $154. Customers with Esurance might save as much as $237 a year, and California Casualty insureds might cut rates by $296 a year.
To see if you’re overpaying, click here or quote prices from the following companies.
These policy rates are averaged across all ages of drivers and types of vehicles and do not take into consideration a specific zip code for low income drivers. So the insurer that fits your age and vehicle best may not even be in the top 23 companies in the list above. That underscores the importance of why you need to compare prices as often as possible using your own specific driver and vehicle information.
The type of vehicle to be insured is one of the largest considerations when consumers are trying to find the lowest-priced coverage for low income drivers. Vehicles with more horsepower, poor passenger safety features, or an increased likelihood of liability claims will cost more to insure than safer, lower-performance models. The information below estimates car insurance premiums for a handful of the most cost-effective automobiles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 4WD | $1,332 |
| Ford Escape Limited 4WD | $1,413 |
| Honda Odyssey EX | $1,511 |
| Chevrolet Impala LS | $1,517 |
| Toyota Tacoma Double Cab 4WD | $1,542 |
| Chevrolet Malibu Hybrid | $1,549 |
| Chevrolet Silverado LS Extended Cab 4WD | $1,542 |
| Toyota RAV4 Sport 4WD | $1,549 |
| Ford Explorer Limited 4WD | $1,571 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $1,599 |
| GMC Sierra SLT Extended Cab 2WD | $1,651 |
| Jeep Grand Cherokee SRT-8 4WD | $1,658 |
| Ford F-250 XL 2WD | $1,656 |
| Ford Fusion SEL AWD 4-Dr Sedan | $1,763 |
| Toyota Camry Hybrid | $1,765 |
| Toyota Camry Hybrid | $1,772 |
| Toyota Prius | $1,778 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $1,791 |
| Hyundai Elantra Blue 4-Dr Sedan | $1,827 |
| Ford Edge Sport AWD | $1,861 |
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Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, multi-policy, claim-free, homeowner, and multi-vehicle. Estimates do not factor in specific location information which can decrease or increase coverage prices noticeably.
Looking at the rates, models like the Honda CR-V, Ford Escape, Honda Odyssey, Chevrolet Impala, and Toyota Tacoma are likely to be the less-costly vehicles to insure for poor drivers.
Get discount Houston auto insurance rates
Car insurance companies that offer quotes for low income drivers may have price discounts that could potentially reduce rates by 30% or more if you are eligible for them. A few popular companies and some of the discounts can be read below.
- 21st Century may have discounts that include student driver, anti-lock brakes, driver training, 55 and older, and theft prevention.
- State Farm may offer discounts for multiple policy, passive restraint, anti-theft, safe vehicle, and defensive driving training.
- AAA offers discounts for multi-policy, multi-car, education and occupation, good student, anti-theft, pay-in-full, and good driver.
- Liberty Mutual may include discounts for newly retired, exclusive group savings, new move discount, multi-policy, newly married, and multi-car.
- Progressive has discounts for good student, online signing, online quote discount, homeowner, and multi-policy.
The information below illustrates the difference between car insurance costs with and without some available policy discounts. The premiums are based on a female driver, no tickets, no at-fault accidents, Texas state minimum liability limits, full physical damage coverage, and $100 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second shows the rates with passive restraint, multiple vehicle, marriage, multiple policy, safe-driver, and accident-free discounts applied. When taking advantage of discounts, the average savings per year on car insurance for low income drivers is 28% or $771.
Reckless driving habits raise car insurance rates
The easiest way to score low car insurance rates in Texas for poor drivers is to drive safely and not have accidents or get tickets. The example below highlights how traffic violations and at-fault accidents can increase car insurance costs for different age categories. The data assumes a single male driver, full physical damage coverage, $1,000 deductibles, and no other discounts are factored in.
In the prior example, the average cost of car insurance in Texas per year with no violations or accidents is $1,598. Add in one speeding ticket and the average cost jumps to $1,804, an increase of $206 each year. Now throw in two accidents along with the one speeding ticket and the annual cost of car insurance for low income drivers increases to an average of $3,736. That’s an increase of $2,138, or $178 per month, just for being a careless driver!
Why you should be shopping around
Houston car insurance rates are influenced by many factors which can significantly increase or decrease the price of coverage. Simply having a birthday, having a claim, or getting a few speeding tickets can trigger price changes resulting in some rates now being affordable when they were higher priced. Not only that, but car insurance companies modify pricing as often as every three months in order to be able to pay unexpected claims. Heavy losses may result in rate hikes, while better underwriting may produce lower-priced Houston car insurance rates.
As an example, the graph below shows which company has the cheapest car insurance in Houston, TX for a 45-year-old female driver with no prior claims, no tickets, and solid credit. If we estimate prices based on her current situation, Travelers may have the cheapest car insurance rates in Houston at $1,350 annually. This is $554 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the rest of the cheapest Houston, TX auto insurance companies.
The example below compares rates after we give the driver from the first set of rates a chargeable accident, poor credit, and a blemish on her driving record. Since every insurance provider has a proprietary method to determining premium rates, comparing rates may now result in a new list of affordable Houston car insurance companies as shown below.
USAA now has the best car insurance rate in Houston, TX with State Farm, Mercury, Nationwide, and Safe Auto now being in the top five. This example illustrates why Houston drivers need to compare as many rates as possible to get cheap insurance quotes for low income drivers.
Insurance rates are made up of many factors and can change without notice, so the best price the last time you compared rates may now be quite expensive.