You have surely seen all the commercials from insurers like Allstate and State Farm that promise huge savings, so you just need to pick the company with the cutest commercial, right?
It’s just not that simple, as there are a lot of unknowns such as the area you live in, your credit score, if you own or rent your home, and your annual mileage driven. If you keep reading, we will teach you about the things that influence insurance rates and will hopefully give you a good beginning to your quest for cheaper car insurance in Laredo.
For drivers age 25 and younger, one of the more important things that aid in calculating the annual cost of car insurance is where you live in Laredo. Cities with larger populations tend to have higher rates, whereas areas with less people or fewer weather incidents receive better rates.
The table below ranks the most expensive places in Texas for drivers under 25 to buy car insurance in. Laredo ranks #3 with a yearly premium of $1,907 on average, which is about $159 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Dallas | $1,911 |
| 3 | Laredo | $1,907 |
| 4 | Brownsville | $1,851 |
| 5 | Houston | $1,835 |
| 6 | Garland | $1,832 |
| 7 | Pasadena | $1,812 |
| 8 | Mesquite | $1,807 |
| 9 | Amarillo | $1,804 |
| 10 | Grand Prairie | $1,757 |
| 11 | Beaumont | $1,754 |
| 12 | Irving | $1,719 |
| 13 | Lubbock | $1,716 |
| 14 | Arlington | $1,709 |
| 15 | Austin | $1,676 |
| 16 | San Antonio | $1,671 |
| 17 | Fort Worth | $1,670 |
| 18 | Carrollton | $1,647 |
| 19 | Plano | $1,624 |
| 20 | McKinney | $1,609 |
| 21 | Corpus Christi | $1,588 |
| 22 | El Paso | $1,568 |
| 23 | Abilene | $1,561 |
| 24 | Waco | $1,537 |
| 25 | Killeen | $1,488 |
| Find Cheaper Rates Go | ||
Rates are comparative as specific Laredo garaging address can raise or lower premium rates noticeably.
The vehicle to be insured is one of the largest considerations when comparison shopping for low-priced insurance for drivers under 25. Vehicles with economical engines, excellent safety ratings, or a track record of few liability claims will cost less to insure than higher performance models.
The next table shows car insurance premiums for the most economical automobiles to insure in Texas.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $2,755 |
| Honda CR-V EX-L 4WD | $2,795 |
| Toyota Prius | $3,014 |
| Ford F-150 FX2 Super Cab 2WD | $3,087 |
| Ford Explorer XLT AWD | $3,096 |
| Volkswagen Jetta SE 2.5 Station Wagon | $3,191 |
| Ford Edge SEL AWD | $3,222 |
| Honda Odyssey EX | $3,230 |
| Dodge Grand Caravan Hero | $3,263 |
| Toyota RAV4 Limited 4WD | $3,270 |
| Chevrolet Malibu Hybrid | $3,263 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $3,306 |
| Ford F-350 XL Super Cab 2WD | $3,346 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $3,359 |
| Ford Focus SEL 4-Dr Sedan | $3,400 |
| Chevrolet Impala LTZ | $3,440 |
| Toyota Corolla XLE | $3,448 |
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Table data represents single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in vehicle garaging location which can decrease or increase coverage rates substantially.
By looking at the data, you can figure that cars like the Ford Escape, Honda CR-V, Toyota Prius, Ford F-150, and Ford Explorer are most likely going to be some of the more affordable vehicles to insure for drivers age 25 and younger. The cost of a car insurance policy will be more expensive just due to the fact that there is more claim risk for drivers under 25, but generally speaking those models will probably have the cheapest auto insurance rates compared to all other vehicles.
Deciphering which companies have the lowest-priced car insurance rates for drivers under 25 requires a bit more work than just comparing rates from one or two companies.
Every insurance provider has their own formula to set policy rates, so let’s take a look at the most affordable car insurance companies in Texas.
Find the Best Cheap Insurance for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,052 |
| 2 | USAA | $1,084 |
| 3 | Texas Farm Bureau | $1,247 |
| 4 | Germania Mutual | $1,294 |
| 5 | Esurance | $1,407 |
| 6 | California Casualty | $1,424 |
| 7 | State Farm | $1,495 |
| 8 | Mercury | $1,521 |
| 9 | Nationwide | $1,538 |
| 10 | Safe Auto | $1,549 |
| 11 | Progressive | $1,647 |
| 12 | Allstate | $1,718 |
| 13 | Amica | $1,775 |
| 14 | Home State | $2,092 |
| 15 | GEICO | $2,156 |
| 16 | MetLife | $2,183 |
| 17 | Unitrin | $2,241 |
| 18 | Encompass | $2,324 |
| 19 | 21st Century | $2,494 |
| 20 | Titan | $2,672 |
| Get a Custom Quote Go | ||
Travelers quotes some of the cheapest car insurance rates in Laredo at around $1,052 per year. This is $852 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the cheaper Laredo, TX insurance companies.
As shown in the table above, if you buy coverage from Germania Mutual and switched to Travelers, you might realize a yearly price reduction of approximately $242. Customers with Esurance might save as much as $355 a year, and California Casualty insureds might realize rate reductions of up to $372 a year.
These prices are averaged for all drivers and vehicles and and are not figured with an exact location for drivers under 25. So the car insurance company that fits your age and vehicle best may not even be in the top 23 companies shown above. That underscores the importance of why you need to get rate quotes from many companies using your own personalized driver profile and vehicle information.
Careless driving habits raise Laredo car insurance rates
The easiest method to receive the most affordable car insurance rates in Laredo for drivers age 25 and younger is to drive safely and avoid accidents and traffic citations. The example below demonstrates how citations and fender-benders can drive up auto insurance costs for each age group. The premiums assume a married female driver, full coverage, $500 deductibles, and no additional discounts are factored in.
The data charted above shows the average cost of a car insurance policy in Texas per year with a clean driving record and no accidents is $1,380. Receive one speeding ticket and the average cost hikes up to $1,610, an increase of $230 each year. Now include two accidents along with the one speeding ticket and the annual cost of car insurance for drivers under 25 goes up to an average of $3,664. That’s an increase of $2,284, or $190 per month, just for not being attentive to the road!
The illustration below highlights how deductible selection can increase or decrease yearly insurance costs when getting quotes for cheap insurance for drivers under 25. The data assumes a single male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
A 30-year-old driver could cut expenses by $352 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $530 by changing to a $1,000 deductible. Even younger insureds, like the Age 20 chart data, could roll back prices up to $1,026 or even more by selecting a higher deductible. If you make the decision to raise deductibles, it is a good idea to have additional funds squirreled away to pay the extra out-of-pocket expense. This is the primary disadvantage of choosing high deductibles.
Comparing rates can save you money
Texas car insurance rates are determined by lots of factors that can increase the price of your policy. Turning one year older, buying a different home, or getting a ticket for careless driving can produce rate changes that can cause some rates to be more affordable than before. Not only may your situation change, but insurers change premium rates multiple times each year to help ensure profitability. Heavy losses can result in price increases, while lower claim levels can result in lower-cost Laredo car insurance rates.
To illustrate this example, the graph below demonstrates which company has the cheapest car insurance in Laredo, TX for a 30-year-old male driver with no accidents or violations, and excellent credit. If we estimate rates based on his current risk profile, Travelers offers the best car insurance rates in Laredo at $1,335 each year. This is $569 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also on the list of the cheapest Laredo, TX auto insurance companies.
Let’s now give the driver in the first example a couple of claims, less-than-perfect credit, and a speeding ticket. Since every insurance provider has a different formula to establish rates, comparing insurance quotes most likely will result in a different list of the cheapest companies as shown below.
State Farm now has the cheapest insurance rate in Laredo, TX with Mercury, Nationwide, Safe Auto, and USAA also having competitive pricing. This example shows why Texas drivers need to compare many different companies to find the lowest insurance rates for drivers under 25.
Auto insurance prices can be altered by many factors and change dramatically, so the lowest-price company the last time you checked may now not even be in the top five.