For poor drivers, one of the big factors that help determine the amount you pay each year for auto insurance is where you live in Austin. Cities with larger populations or higher claim trends will most likely pay more, whereas areas with less crime or weather claims benefit from lower coverage costs.
The following table rates the most expensive areas in Texas for low income drivers to purchase auto insurance in. Austin is ranked #17 with an annual cost of $1,659 for car insurance, which is about $138 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Brownsville | $1,927 |
| 3 | Houston | $1,909 |
| 4 | Dallas | $1,893 |
| 5 | Laredo | $1,889 |
| 6 | Amarillo | $1,858 |
| 7 | Mesquite | $1,825 |
| 8 | Garland | $1,796 |
| 9 | Grand Prairie | $1,757 |
| 10 | Pasadena | $1,740 |
| 11 | Irving | $1,736 |
| 12 | Lubbock | $1,716 |
| 13 | Beaumont | $1,702 |
| 14 | Arlington | $1,692 |
| 15 | San Antonio | $1,688 |
| 16 | Carrollton | $1,664 |
| 17 | Austin | $1,659 |
| 18 | McKinney | $1,625 |
| 19 | Fort Worth | $1,621 |
| 20 | Corpus Christi | $1,588 |
| 21 | El Paso | $1,584 |
| 22 | Plano | $1,576 |
| 23 | Abilene | $1,545 |
| 24 | Waco | $1,537 |
| 25 | Killeen | $1,488 |
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Price information shown is approximated as specific location information can affect coverage rates significantly.
The type of vehicle requiring coverage is a significant factor when comparison shopping for low-cost car insurance for low income drivers. Vehicles with economical engines, advanced safety features, or a positive history of liability claims will cost substantially less to insure than higher performance models.
The information below illustrates insurance costs for a number of the most budget-friendly vehicles to buy coverage for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 4WD | $1,176 |
| Toyota RAV4 Limited 4WD | $1,190 |
| Dodge Grand Caravan SXT | $1,213 |
| Ford F-150 Lariat Super Cab 4WD | $1,220 |
| Honda Accord EX 4-Dr Sedan | $1,231 |
| Ford Escape Limited 2WD | $1,261 |
| Toyota Prius | $1,272 |
| Chevrolet Silverado LTZ Crew Cab 4WD | $1,274 |
| Kia Optima LX | $1,277 |
| Chevrolet Silverado 3500HD LT Crew Cab 2WD | $1,297 |
| Ford F-350 Super Cab Harley Edition 2WD | $1,320 |
| Toyota Tacoma 2WD | $1,338 |
| Jeep Grand Cherokee Laredo 2WD | $1,363 |
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Price data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, safe-driver, multi-policy, multi-vehicle, and homeowner. Premium costs do not factor in specific garaging location which can impact premium rates noticeably.
Based upon these rates, we can infer that vehicles like the Honda CR-V, Toyota RAV4, Dodge Grand Caravan, Ford F-150, and Honda Accord will definitely be some of the less-costly vehicles to insure for poor drivers.
Shopping around for cheap auto insurance is not most people’s favorite thing to do, and figuring out which companies offer the lowest-priced auto insurance rates for low income drivers will involve even more shopping around. Each insurer uses their own calculation to set their prices, so let’s begin by examining the auto insurance companies that tend to be cheaper in Texas.
It’s important that you understand Austin auto insurance rates are based on many factors that can increase the policy premium. Things like having a birthday, adding a teenager to your policy, or having an accident can produce rate changes that may make certain companies cheaper than before.
Cheap Insurance Rates in Texas
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,052 |
| 2 | USAA | $1,084 |
| 3 | Texas Farm Bureau | $1,211 |
| 4 | Germania Mutual | $1,282 |
| 5 | Esurance | $1,421 |
| 6 | California Casualty | $1,438 |
| 7 | State Farm | $1,495 |
| 8 | Mercury | $1,521 |
| 9 | Nationwide | $1,538 |
| 10 | Safe Auto | $1,565 |
| 11 | Allstate | $1,650 |
| 12 | Amica | $1,705 |
| 13 | Progressive | $1,715 |
| 14 | Home State | $2,134 |
| 15 | GEICO | $2,156 |
| 16 | MetLife | $2,161 |
| 17 | Unitrin | $2,241 |
| 18 | Encompass | $2,255 |
| 19 | 21st Century | $2,421 |
| 20 | Titan | $2,568 |
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Travelers offers some of the best car insurance rates in Austin at around $1,052 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also are some of the best Austin, TX insurance companies.
In the above rates, if you are a policyholder with Germania Mutual and switched to USAA, you might see a yearly price reduction of upwards of $198. Texas drivers with Esurance could save as much as $337 a year, and California Casualty customers might realize rate reductions of up to $354 a year.
To find the cheapest coverage for you, click here to start your custom quote or quote prices from the following companies.
It’s important to note that these premiums are averages across all drivers and vehicles in Texas and do not factor in a specific location for low income drivers. So the auto insurance company that fits you best may not even be in the top 23 companies in the list above. That is why you need to get car insurance quotes using your own driver information and specific vehicle type.
How to get discounts on Austin insurance
Car insurance companies that provide policies for low income drivers could also offer rate discounts that could lower prices by as much as 40% or more if you are eligible to receive them. Larger auto insurance companies and some of the discounts are:
- Farmers Insurance offers discounts for business and professional, teen driver, early shopping, mature driver, pay in full, electronic funds transfer, and switch companies.
- Esurance discounts include online shopper, homeowner, multi-policy, paid-in-full, Pac-12 alumni, and good driver.
- State Farm has discounts for defensive driving training, good driver, driver’s education, safe vehicle, Drive Safe & Save, multiple policy, and multiple autos.
- GEICO includes discounts for military active duty, membership and employees, air bags, federal employee, emergency military deployment, and anti-theft.
- Allstate has savings for economy car, EZ pay plan discount, good student, safe driver, teenSMART discount, anti-theft, and farm vehicle.
The example below illustrates the difference between insurance rates with and without policy discounts. The information is based on a male driver, a clean driving record, no at-fault accidents, Texas state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with accident-free, multiple vehicle, homeowner, defensive driving course, vehicle safety, and safe-driver discounts applied. When drivers qualify for the discounts, the average savings per year on auto insurance for low income drivers is 28% or $496.
Careless drivers pay higher rates
In a perfect world, the best way to maintain the best auto insurance prices for poor drivers is to be a careful driver and avoid tickets and accidents. The example below illustrates how speeding tickets and fender-benders raise auto insurance rates for different age groups. The rate quotes are based on a married male driver, full coverage, $250 deductibles, and no discounts are applied.
In the previous example, the average cost of an auto insurance policy in Texas per year with a clean driving record and no accidents is $2,274. Receive two speeding tickets and the average cost jumps to $3,145, an increase of $870 each year. Now throw in two accidents along with the two speeding tickets and the yearly cost of auto insurance for low income drivers goes up to an average of $6,385. That’s an increase of $4,110, or $343 per month, just for not driving carefully!
The illustration below shows how choosing a deductible can increase or decrease insurance costs when getting quotes for cheap insurance for low income drivers. The premiums are based on a married male driver, full physical damage coverage, and no discounts are factored in.
The data above shows that a 50-year-old driver could lower rates by $264 a year by switching from a $100 deductible up to a $500 deductible, or save $402 by using a $1,000 deductible. Even younger drivers, like the Age 20 chart data, can cut as much as $884 or even more by choosing larger deductibles on their policy.
When raising deductibles, it will be necessary to have plenty of money set aside to enable you to pay the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Ideas for buying economical insurance for low income drivers
The list below shows some money-saving solutions that can help Texas drivers quote lower-cost coverage.
- Clean up your credit rating
- Discounts for being claim-free can be substantial
- Accident-free drivers may qualify for discounts
- Do not get traffic violations
- Safer vehicles generally have cheaper insurance rates
- Keep rates low by shopping around frequently
That last idea is certainly valuable, as we pointed out in this piece. Insurance prices in Austin vary considerably, so don’t hesitate to switch carriers if you find a cheaper price.
Many drivers have brand loyalty and that’s fine, but it’s not a great idea if that dedication is costing money that could be spent on other things. In just a few minutes you could compare rates to find cheaper car insurance for low income drivers.