Best Car Insurance for Drivers with Bad Credit in Texas (Top 10 Companies Ranked for 2025)
The best car insurance for drivers with bad credit in Texas is Liberty Mutual, Allstate, and American Family, with $139/mo starting rates. Liberty Mutual offers customizable policies and savings options. Allstate offers non-standard insurance, and American Family provides flexible payment options.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
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UPDATED: Feb 14, 2025
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Feb 14, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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3,607 reviewsCompany Facts
Full Coverage With Bad Credit in TX
A.M. Best Rating
Complaint Level
Pros & Cons
3,607 reviews
11,413 reviewsCompany Facts
Full Coverage With Bad Credit in TX
A.M. Best Rating
Complaint Level
Pros & Cons
11,413 reviews
2,180 reviewsCompany Facts
Full Coverage With Bad Credit in TX
A.M. Best Rating
Complaint Level
Pros & Cons
2,180 reviewsThe best car insurance for drivers with bad credit in Texas is Liberty Mutual, Allstate, and American Family, which offer options to secure the best coverage.
The top overall pick is Liberty Mutual, which offers customizable car insurance coverage for people with bad credit. Allstate is known for its availability of non-standard insurance and accident forgiveness. The American family has flexible payment options and discounts intended for drivers with poor credit. Check out the top 10 auto insurance for people with bad credit below.
Our Top 10 Company Picks: Best Car Insurance for Drivers With Bad Credit in Texas
| Insurance Company | Rank | Bundling Discount | A.M. Best | Best for | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 25% | A | Custom Policies | Liberty Mutual |
 | #2 | 25% | A+ | Comprehensive Plan | Allstate |
 | #3 | 25% | A | Low Rates | American Family |
 | #4 | 25% | A++ | Budget-Friendly Policy | Geico |
 | #5 | 20% | A | Customer Satisfaction | Farmers |
 | #6 | 10% | A+ | Diverse Coverage | Progressive |
 | #7 | 20% | A+ | Broad Discounts | Nationwide |
 | #8 | 17% | B | Reliable Service | State Farm |
 | #9 | 13% | A++ | Policy Flexibility | Travelers |
 | #10 | 10% | A++ | Military Members | USAA |
In this car insurance guide, we will explore the impact of bad credit in auto insurance in Texas, the challenges faced by drivers with bad credit, and the factors that influence insurance rates. We will also compare different car insurance companies and offer advice on improving credit scores and lowering insurance rates.
For bad credit car insurance quotes, simply enter your ZIP code and compare rates.
- Liberty Mutual offers customizable coverage and 30% savings of RightTrack
- The rates of car insurance for drivers with bad credit ranges from $139 to $346
- The top 10 companies offer 10% to 25% discounts for bundling insurance
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#1 – Liberty Mutual: Top Overall Pick
Pros
- Options for Customizable Coverage: Liberty Mutual customers can customize their vehicle insurance plans to meet financial restraints.
- RightTrack® Program: In Liberty Mutual’s RightTrack® program, Texas drivers can receive up to 30% in savings for safe driving practices to offset higher premiums linked to adverse credit.
- Bundle Program Discounts: Bundling car insurance with other policies can benefit drivers trying to cut expenses by up to 25%.
Cons
- Low Service Ratings: With a higher-than-average complaint rate and an NAIC rating of 2.23, Liberty Mutual may have problems with client satisfaction and service quality.
- High Premiums: Some coverage of car insurance for bad drivers is unaffordable because the premiums are roughly 7% more than the national average.
#2 – Allstate: Best for Comprehensive Plan
Pros
- Accident Forgiveness & Safe Driving Discounts: Several safe driving discounts, such as accident forgiveness, help defray the higher rates drivers with poor credit frequently incur.
- Flexible Coverage Options & Add-Ons: For drivers who want to customize their coverage, Allstate offers insurance with features like rideshare coverage, new car replacement, and vanishing deductibles.
- Availability of Non-Standard Insurance: The Allstate review ensures auto insurance for people with bad credit providing options like SR-22 filing if proof of insurance for legal requirements is needed.
Cons
- Higher Rates for Bad Credit: Unlike some competitors, Allstate charges higher premiums for its policyholders, especially those with poor credit.
- Fewer Discounts: Although discounts are available, car insurance coverage for poor credit drivers gets lesser savings.
#3 – American Family: Best for Low Rates
Pros
- Flexible Payment Plans: Drivers with poor credit can easily manage their premiums with American Family’s flexible payment alternatives.
- Comprehensive Coverage Options: Texas offers a variety of coverage options, including non-standard insurance, for high-risk drivers.
- Discounts for Safe Driving and Bundling: The American Family review offers discounts for safe driving and bundling multiple policies, which can help reduce premiums for drivers with bad credit.
Cons
- Higher Premiums for Bad Credit: When drivers have bad credit, the American Family may charge higher premiums, making coverage more expensive.
- Restricted Savings for High-Risk Drivers: American Family provides fewer savings to help high-risk drivers with bad credit.
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#4 – Geico: Best for Budget-Friendly Policy
Pros
- Reasonable Pricing: Geico provides competitive base rates, which could assist drivers with poor credit in locating more reasonably priced coverage alternatives.
- Numerous Discounts: Our Geico Insurance Review listed all the offers for drivers with poor credit, including those for safe driving, military service, and bundling policies.
- User-Friendly Online Resources: Geico simplifies drivers’ insurance needs by providing user-friendly online resources for quoting, working plans, and paying payments.
Cons
- Limited Coverage Options for High-Risk Drivers: Geico might not provide as many specialty coverage options or discount of auto insurance for bad drivers with poor credit as other insurers.
- Payment Flexibility: Drivers with poor credit may find it more difficult to control their costs since Geico offers fewer flexible payment alternatives.
#5 – Farmers: Best for Customer Satisfaction
Pros
- Flexible Payment Options: Our Farmer’s Insurance review highlights flexible payment plans, which can help drivers with bad credit manage their premiums more easily.
- Variety of Discount Options: Auto insurance rates with bad credit drivers can significantly decrease through multi-policy savings or defensive driving courses.
- Non-Standard Coverage: Farmers offer non-standard coverage options, making obtaining insurance easier for drivers with bad credit or a history of accidents.
Cons
- Premium Hike: Farmers’ policy rates are usually higher than those with fair or reasonable credit drivers.
- Limited Specialized Options for High-risk Drivers: Compared to other insurers, Farmers offers fewer specialized options for drivers with poor credit, although it offers some discounts.
#6 – Progressive: Best for Diverse Coverage
Pros
- Non-Standard Coverage Availability: Progressive social policies like SR-22 insure drivers with bad credit who may have struggled to get insurance elsewhere.
- Competitive Price: Reasonable policy pricing compared to other providers, even considering the credit score.
- Flexible Payment Option: Progressive review mentioned options for those with a tight budget, such as low-down payments, customizable payment schedules, autopay, grace periods, and more.
Cons
- Higher Payment Plan: Additional fees for monthly or installment payments than upfront full payments on premiums.
- Limited Low-Income Assistance: Special programs for low-income drivers are not available, unlike some state-run programs of regional insurers.
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#7 – Nationwide: Best for Broad Discount
Pros
- Discount Opportunities: Nationwide lets you save in more ways, even with your low credit score, through SmartRide, SmartMile, paperless options, accident-free, and more.
- Vanishing Deductibles: This program reduces your annual deductible from $100 to $500 if you maintain good driving records.
- Fewer Penalties: Nationwide review includes forgiving options for low credit if the driving record is good and doesn’t penalize them harshly.
Cons
- Geographical Limitations: Coverage and discounts vary based on locations.
- Discount Requirements: In SMartRIde and SmartMiles, telematics tracking is necessary, which some drivers don’t like.
#8 – State Farm: Best for Reliable Service
Pros
- Discount Programs: To offset the high rate for impaired drivers, it offers a wide range of ways to lower it, like a 30% telematics discount, defensive driving discount, and more.
- Reliable Claims Process: 24/7 smooth claims processing and high rates for customer satisfaction with a score of 710/1000.
- Personalized Service Through Local Agents: With over 19,000 local agents to assess your needs, discounts, and claims on one-on-one guidance.
Cons
- Fees for Monthly Payments: Additional fees may be added when you don’t pay in full upfront. Check the State Farm review to know these additional fees.
- Expensive Bad-Credit Drivers Rates: Progressive heavily considers credit scores in its pricing, so rates are higher than those for those with good credit scores.
#9 – Travelers: Best for Policy Flexibility
Pros
- Best Flexible Options: Travelers review presents customizable deductibles and a wide range of coverage, such as rideshare, gap, accident forgiveness, and payment plan schedules.
- Financial Stability: With an A++ rate from AM Best and a 24/7 claims support reputation.
- Extensive Discounts: 30% IntelliDrive Program savings, multi-policy, safe driver and defensive driving, continuous insurance discount, and more.
Cons
- Higher Base Rate: The overall base rates are higher than those of Geico and Progressive.
- IntelliDrive Drawback: As it tracks your driving behaviors, hard braking, late-night driving, and rapid acceleration may raise the price.
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#10 – USAA: Best for Military Members
Pros
- Competitive Pricing: The USAA review highlights that it generally has lower premiums than major insurers, even the cheapest for those who qualify for exclusive customers.
- Installment Options: Automatic payments and budget-wise installment with no fees, unlike other insurers.
- Stable Financial Standing: One of the most financially secure providers with A++ ratings from AM Best.
Cons
- Eligibility Restrictions: As it is exclusive for military members, veterans, and their immediate family, not all bad credit drivers will qualify for their lowest offers.
- Customer Service Issue: Dissatisfaction with the insurer’s claims handling and customer service, as well as issues like unfair fault determination and incremental premiums over time.
Understanding The Impact Of Bad Credit On Car Insurance Rates In Texas
Having bad credit can significantly impact the cost of car insurance in Texas. Insurance companies consider credit scores as indicators of a driver’s financial responsibility and likelihood of filing claims. Drivers with bad credit are perceived as higher-risk individuals, leading to higher insurance premiums.
Therefore, it is crucial for drivers with bad credit in Texas to understand how their credit history impacts their car insurance rates.
Texas Bad Credits Car Insurance Monthly Rates by Provider & Coverage Level
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| $123 | $332 |
| $122 | $330 |
| $90 | $244 |
| $99 | $268 |
| $128 | $346 |
| $80 | $217 |
| $79 | $215 |
| $70 | $190 |
| $66 | $178 |
| $51 | $139 |
For example, USAA had the lowest rates for minimum coverage and full coverage, but remember, this insurer is exclusive for military and veterans. So, we have Travelers at $66 minimum coverage and $178 full coverage for civilians.
Texas insurance companies use credit-based insurance scores, which differ from regular ones. These insurance scores are calculated using information from credit reports and focus on specific factors that are believed to correlate with future insurance claims. Factors like payment history, outstanding debt, length of credit history, new accounts, and types of credit used all play a role in determining insurance rates.
It’s important to note that in Texas, insurance companies are legally required to inform drivers if their credit history significantly affected the insurance rate they were offered. If so, drivers can request an explanation and a copy of their credit report. Understanding how bad credit affects car insurance rates is the first step toward finding the best coverage options for drivers in Texas.
Car Insurance Discounts From the Top Providers With Bad Credits in Colorado
| Insurance Company | Available Discounts |
|---|---|
| Responsible Payer, Multi-Policy, New Car, Anti-Theft Device, Paperless Billing, Early Signing |
| Good Student, Safe Driving, Multi-Policy, Claims-Free, Vehicle Safety Features |
| Homeowner, EPolicy Sign-Up, Senior Driver, Affinity Group, Early Payment |
| Safe Driver, Multi-Policy, Defensive Driving, Good Student, Vehicle Safety Equipment |
| Good Student, Early Shopping, New Customer, Bundling, Vehicle Safety Equipment |
| Multi-Policy, Paperless Billing, Safe Driver, Accident-Free, Affinity Membership |
| Multi-Car, Homeowner, Continuous Insurance, Snapshot (Usage-Based), Teen Driver, Sign Online |
| Accident-Free, Vehicle Safety, Good Driver, Good Student, Multi-Policy |
| Multi-Policy, Safe Driver, Vehicle Safety, Good Student, Defensive Driving |
| Loyalty, Garaging Vehicle, Annual Mileage, Multi-Vehicle (Only For Military Members And Their Families) |
Drivers with bad credit in Texas may wonder if there are any steps they can take to improve their credit and potentially lower their car insurance rates. While improving credit takes time and effort, some strategies can help.
Tracey L. Wells Licensed Insurance Agent & Agency Owner
Reducing outstanding debt and keeping credit card balances low can positively impact credit scores. Regularly checking credit reports for any errors or inaccuracies that could negatively affect credit scores is also a good idea. By taking proactive steps to improve credit, drivers in Texas may be able to see a positive change in their car insurance rates.
How To Overcome The Challenges Of Getting Car Insurance With Bad Credit In Texas
While bad credit can make obtaining car insurance in Texas more difficult, it is not an insurmountable obstacle. There are several strategies drivers with bad credit can employ to navigate these challenges and secure the coverage of best car insurance for bad credit:
- Firstly, shopping around and comparing rates from different insurance companies is crucial. Each company assesses credit scores differently when determining rates, so exploring multiple options is essential. Additionally, some insurance companies specialize in serving drivers with bad credit, so considering those insurers may lead to more favorable rates.
- Secondly, drivers with bad credit in Texas should focus on improving their credit scores as much as possible. Paying bills on time, reducing outstanding debts, and being mindful of credit utilization ratios can help raise credit scores over time. The higher the credit score, the lower the insurance rates are likely to be.
- Thirdly, drivers should consider adjusting their coverage options and deductibles to balance adequate coverage and affordability. By evaluating insurance needs and adjusting coverage accordingly, drivers can potentially reduce their premiums, making car insurance more manageable.
- Finally, seeking the guidance of an insurance agent or broker specializing in working with drivers with bad credit can be beneficial. These professionals have insights into the insurance market and can provide tailored solutions to meet the unique needs of drivers with bad credit in Texas.
It’s important to note that some insurance companies may offer discounts or incentives for drivers with bad credit who complete defensive driving courses or maintain a clean driving record. Taking advantage of these opportunities can improve driving skills and potentially lower insurance premiums.
Additionally, drivers with bad credit should regularly review their insurance policies to ensure they still get the best rates and coverage. By staying informed and proactive, drivers can continue to overcome the challenges of getting auto insurance for bad credit in Texas.
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Exploring The Factors That Influence Car Insurance Rates For Drivers With Bad Credit In Texas
Various factors influence auto insurance rates for people with bad credit in Texas. Understanding these factors can help drivers make informed decisions when selecting coverage options.
Considering all these factors can help drivers with bad credit in Texas understand why their insurance rates may be higher and make informed decisions when selecting coverage options.
- Credit History: The driver’s credit history is crucial. Insurance companies assess credit scores to determine insurance rates, with lower scores resulting in higher premiums.
- Driving Record: Rates for auto insurance with bad driving records also impact insurance rates. Drivers with multiple traffic violations or accidents on their record may face higher premiums, even with bad credit.
- Vehicle Type: The insurance rates depend on the vehicle’s make, model, and year. Certain types of vehicles may attract higher rates due to their tendency to be stolen or require expensive repairs.
- Location: Where the driver lives affects insurance rates. Urban areas and regions with higher crime rates may have higher premiums.
- Insurance Coverage: The type and amount of coverage the driver selects also impact insurance rates. More comprehensive coverage options typically result in higher premiums.
- Age and Gender: Younger drivers and male drivers tend to have higher insurance rates as they are statistically more likely to be involved in accidents.
- Marital Status: Marital status is another factor influencing car insurance rates for drivers with bad credit in Texas. Married drivers often receive lower insurance rates compared to single drivers. Insurance companies consider married individuals more responsible and less likely to engage in risky driving behaviors.
It’s important to shop around and compare quotes from different insurance providers to find the best auto insurance for bad credit drivers and coverage for individual needs.
Factors That Influence Car Insurance Rates for Drivers with Bad Credit in Texas
| Factor | Impact on Insurance Rates |
|---|---|
| Credit Score | Lower credit scores lead to higher premiums. |
| Age | Younger drivers with bad credit pay more. |
| Driving Record | Accidents, tickets, or DUIs increase rates significantly. |
| Location in Texas | Urban areas (e.g., Houston, Dallas) have higher rates than rural areas. |
| Vehicle Type | Expensive or high-performance cars cost more to insure. |
| Coverage Level | Full coverage costs more than minimum liability. |
| Annual Mileage | More miles driven increases premiums. |
| Marital Status | Married drivers may get lower rates. |
| Insurance History | Lapses in coverage can lead to higher rates. |
| Discounts Applied | Bundling, defensive driving courses, and good student discounts can help reduce costs. |
That concludes our car insurance guide for drivers with bad credit in Texas. Do not forget to enter your ZIP code for your bad credit car insurance quotes and to ensure your future road adventure.
Frequently Asked Questions
What is the best car insurance with bad credit drivers in Texas?
The best car insurance for bad credit drivers in Texas may vary depending on individual circumstances and preferences. However, some popular options for drivers with bad credit in Texas include Liberty Mutual, Allstate, American Family, and Geico.
What is the cheapest car insurance in Texas with bad credit?
USAA and Travelers offer the cheapest monthly rates of $139 and $178, respectively.
Does credit score affect car insurance in Texas?
Yes, having bad credit can significantly affect the cost of car insurance in Texas.
Does Progressive check credit?
Yes, Progressive does credit checks on drivers.
Does Allstate use credit scores?
Yes, Allstate uses credit scores to determine the drivers’ monthly rates.
Does Geico use credit scores?
Yes, Geico uses credit scores for background checks and monthly rates.
What is the minimum car insurance required in Texas?
Texas requires a minimum 30/60/25 liability coverage of $30,000 per person, $60,000 for bodily injury in each accident, and $25,000 for property damage.
How much is car insurance in Texas per month?
Texas’s monthly car insurance rates range from $139 to $332. You can easily get quotes by entering your ZIP code.
How can I lower my car insurance in Texas?
You can lower your car insurance through different savings options like multi-policy, safe driving discounts, continuous insurance loyalty discounts, good student discounts, and many more.
What is the best insurance company for high-risk drivers?
Progressive, State Farm, and The General are the best insurance companies for high-risk drivers. Progressive is fantastic for flexible coverage and SR-22 filings. State Farm offers reliable service with a more forgiving credit impact, and The General specializes in high-risk drivers needing quick, no-hassle approval.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.