How Can I Get Low-Income Auto Insurance In Texas?

While car insurance is mandatory by law, not all families have an easy time paying for it. If you are struggling with low-income then you could be left worrying if your coverage is going to lapse because you had to choose between rent and making your premium payment. 

While the federal minimum wage is stubborn to budge, the cost of auto insurance has been steadily increasing year after year. At the present time, Texas does not have a state-sponsored insurance option for low-income customers. In fact, only three states do; California, New Jersey, and Hawaii. Your best bet is to shop around and find the lowest auto insurance quotes in your area. 

Texas Car Insurance Companies Known For Low Rates

Sometimes low-income drivers can have other risk factors that make insurance troublesome such as poor credit. There is a small local insurance company in Texas called Fred Loya Insurance that has the lowest rates without having eligibility requirements. If you want to go with a national brand, State Farm has low rates for low-income drivers in Texas. 

If you are a farmer or have been in the military then you have additional low-cost options like USAA and Texas Farm Bureau Insurance. These are membership-based plans though and no everyone will qualify for them. 

The average car insurance rate in Texas is $1,415 per year and that rate can change with your own risk factors, the type of car you drive, and where you live. No matter what your income is, all drivers are expected to maintain at least minimum liability auto insurance in case of accidents. You can obtain a license, renew a license, or legally drive your car without some type of insurance. 

Ways To Lower Your Premiums For Low-Income Drivers In Texas

Some factors in deciding your premiums are outside your control such as your age, younger drivers are more expensive to insure. There are many factors, however, that you can have some degree of control over. Some of these factors are:

• Paying your premiums annually or by auto-draft 

• Taking defensive driving courses

• Not having any speeding tickets or other moving violations

• Not drinking and driving

• Being accident-free

• Having good grades if you are a student

• Bundling insurance policies

• Having a used or older car

• Keeping your credit score up

Having a safe driving record doesn’t only mean staying accident-free or not getting speeding tickets. Other costly traffic violations could include cell phone use, failure to yield, driving with expired plates, having an open container, driving with a suspended license, racing, or other reckless driving activity. 

When you shop around and compare prices, make sure to check out what discounts are being offered. You may be surprised at how much adding and subtracting discounts can change your base rate. You can get discounts for being a safe driver, how you pay your premiums, and by your profession or other designation. It’s best to shop for insurance at least twice a year and compare rates.