It can be tough to find cheap auto insurance with a bad credit score. Car insurers use credit score as a rating factor, setting prices based in part on clients' credit scores. Because car insurance companies use historical data showing drivers with bad credit histories have a greater likelihood of filing auto insurance claims, they account for for that extra risk by charging more.
Your car insurance costs with bad credit depends on where you live, which car insurance company you use, and an array of other rating factors. We've gathered below typical insurance prices for drivers with bad credit in primary Texas cities and rates from popular car insurance companies, followed by tips on how to save on car insurance if you have bad credit in Texas.
Car insurance with bad credit in Texas:
Auto insurance rates with bad credit in Texas
Drivers in Texas pay a penalty of $1,881 annually for having a credit score at the low end of the scale. A driver in either the “poor” or “below fair to poor” credit tier will also pay higher-than-average rates.
TEXAS AUTO INSURANCE RATES WITH BAD CREDIT
|Credit Tier||Average Annual Rate in Texas|
|Below Fair to Poor||$3,156|
|Average — All Credit Tiers||$1,810|
Auto insurance rates with a bad credit score in Texas cities
Auto insurance prices will also vary based on the specific area in which you live. Insurers look at your address to better understand how likely you are to file a claim: the denser your area,, the more expensive your rates.
Listed below are major Texas cities and their typical car insurance rates for drivers with low credit scores.
BAD CREDIT CAR INSURANCE RATES IN TEXAS CITIES
|City||Average Annual Rate — Worst Credit||Average Annual Rate — Poor Credit||Average Annual Rate — Below Fair to Poor Credit|
Cheap car insurance companies for bad credit in Texas
Another contributing factor to your car insurance rate is the insurance company you choose. Every auto insurance company prices policies in a different manner, giving rating factors varying weights in their calculations. Credit can be a primary price differentiator between otherwise-similar insurance companies. In Texas, the cheapest insurance company for drivers with bad credit is Texas Farm Bureau, which offers savings of $486 per year versus the next-cheapest company, GEICO.
See rates from leading car insurance companies in Texas for drivers with bad credit.
TEXAS CAR INSURANCE PREMIUMS WITH BAD CREDIT — TOP CARRIERS
|Company||Average Annual Rate — Worst Credit Tier|
|Texas Farm Bureau||$1,881|
If you're having a hard time finding car insurance with bad credit, consider these tips: