One of the many considerations that are used to help calculate insurance cost is where you live. Regions with more people or even just more weather-related claims will most likely pay more, whereas more rural areas benefit from lower prices.
The illustration below shows the most costly cities in Texas for welfare recipients to buy car insurance in. Laredo is listed at #6 with an annual cost of $1,833 for the average policyholder, which is about $153 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Brownsville | $1,908 |
| 3 | Houston | $1,891 |
| 4 | Amarillo | $1,858 |
| 5 | Dallas | $1,855 |
| 6 | Laredo | $1,833 |
| 7 | Garland | $1,832 |
| 8 | Mesquite | $1,825 |
| 9 | Pasadena | $1,794 |
| 10 | Grand Prairie | $1,793 |
| 11 | Irving | $1,789 |
| 12 | Beaumont | $1,754 |
| 13 | San Antonio | $1,739 |
| 14 | Lubbock | $1,716 |
| 15 | Austin | $1,676 |
| 16 | Carrollton | $1,647 |
| 17 | Arlington | $1,642 |
| 18 | Plano | $1,624 |
| 19 | Fort Worth | $1,604 |
| 20 | El Paso | $1,584 |
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Premium costs are comparative as the specific geographic location can impact coverage rates greatly.
Finding reliable, budget car insurance is easier said than done, and finding out which companies have the lowest-priced auto insurance rates for welfare recipients takes additional perseverance.
Each insurer has their own guidelines for determining rates in each state, so we’ll take a look at the most budget-friendly auto insurance companies in Texas.
Cheap Insurance Rates in Texas
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,010 |
| 2 | USAA | $1,095 |
| 3 | Texas Farm Bureau | $1,211 |
| 4 | Germania Mutual | $1,244 |
| 5 | California Casualty | $1,382 |
| 6 | Esurance | $1,407 |
| 7 | Mercury | $1,461 |
| 8 | State Farm | $1,495 |
| 9 | Safe Auto | $1,549 |
| 10 | Nationwide | $1,585 |
| 11 | Allstate | $1,701 |
| 12 | Amica | $1,705 |
| 13 | Progressive | $1,715 |
| 14 | Home State | $2,092 |
| 15 | GEICO | $2,093 |
| 16 | Unitrin | $2,241 |
| 17 | MetLife | $2,249 |
| 18 | Encompass | $2,324 |
| 19 | 21st Century | $2,421 |
| 20 | Titan | $2,568 |
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Travelers may offer some of the best car insurance rates in Laredo at around $1,010 each year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are also some of the cheapest Laredo, TX auto insurance companies.
As depicted above, if you currently buy coverage from Texas Farm Bureau and switched to Travelers, you could realize a yearly price reduction of in the vicinity of $201. Texas drivers with Germania Mutual might save as much as $234 a year, and California Casualty policyholders might lower prices by up to $372 a year.
Understand that those prices are averages across all drivers and vehicles in Texas and are not factoring in a specific vehicle garaging location for welfare recipients. So the insurer that can offer you the lowest price may not even be in the top 23 companies in the list above. That helps illustrate why you need to compare prices as often as possible using your own personalized driver profile and vehicle information.
How violations and accidents impact rates
In a perfect world, the best way to receive the cheapest auto insurance rates for drivers on welfare is to be a careful driver and avoid accidents and violations. The diagram below shows how speeding tickets and at-fault fender-benders influence auto insurance costs for each different age group. The data assumes a married female driver, full coverage, $500 deductibles, and no other discounts are factored in.
The data charted above shows the average cost of car insurance per year with a clean driving record and no accidents is $1,513. Get one speeding ticket and the average cost jumps to $1,762, an increase of $249 each year. Then add in one accident along with the one speeding ticket and the annual cost of auto insurance for welfare recipients increases to an average of $2,458. That’s an increase of $946, or $79 per month, just for not keeping your driving record clean!
Cost of full coverage in Laredo
Saving money when shopping for auto insurance is probably important to the majority of vehicle owners, and one of the easiest ways to reduce the cost of insurance for welfare recipients is to buy liability only. The diagram below shows the comparison of premium costs with full physical damage coverage compared to only buying liability only. The premiums are based on no tickets, no at-fault accidents, $100 deductibles, single marital status, and no discounts are applied to the premium.
Averaged for all ages 20 through 70, comp and collision coverage costs $2,181 per year over liability only. Many drivers will wonder if physical damage coverage is worth the money. There is no clear-cut formula to delete full coverage on your policy, but there is a broad guideline. If the yearly cost of full coverage is more than around 10% of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
For example, let’s say your vehicle’s book value is $12,000 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, you would only receive $11,000 after paying the physical damage deductible. If it’s costing you more than $1,100 annually for comprehensive and collision coverage, then you might want to consider buying only liability coverage.
Why you should be shopping around
Laredo, TX auto insurance rates are impacted by many factors which can substantially change the price you pay for coverage. Improving your credit rating, getting married, or getting a couple of tickets can cause premium changes that can make some companies cheaper than competitors.
Additionally, auto insurance companies amend premium rates without warning as an adjustment for underwriting gains or losses. Larger than normal claims can result in more expensive premiums, while less frequent claims can result in more affordable Laredo car insurance rates.
To help illustrate this point, the chart below shows the company with the cheapest car insurance in Laredo, TX for a 45-year-old male driver with a good driving record, no prior claims, and excellent credit. When comparing rates based on his current risk profile, Travelers offers the cheapest car insurance rates in Laredo at $1,338 per year. This is $566 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also included in the cheapest Laredo, TX auto insurance companies.
The next chart shows rates after we give the driver from the first rate comparison a chargeable claim, less-than-perfect credit, and an imperfect driving record. Due to the fact that each insurance company has a unique formula for establishing rates, analyzing rate quotes may now result in a new list of the cheapest Laredo car insurance companies as shown below.
State Farm now has the cheapest car insurance in Laredo with Mercury, Nationwide, Safe Auto, and USAA completing the list. This demonstrates why Laredo drivers need to shop around to find the lowest insurance rates for welfare recipients. Car insurance prices are determined by many things and change dramatically, so the best company three years ago may now be quite expensive.
Tips for buying low-cost insurance for welfare recipients
The list below details a few money-saving suggestions that can help Texas drivers find cheaper coverage.
- Accident-free drivers may qualify for discounts
- Maintain a clean driving record
- Full coverage is expensive so only insure older vehicles for liability only
- Increase your deductibles
- Pay less by remaining claim-free
- Keep rates low by comparing prices once a year
The last suggestion is notably valuable, as we hit on in this piece. Prices charged by companies can be changed at any time, so drivers shouldn’t hesitate to buy from a new company if a better deal can be had. Having a favorite company is great, but it’s not a great idea if your bullheadedness ends up costing you hundreds of dollars year after year. If you have a few minutes, shop around and find cheaper car insurance for welfare recipients in Laredo.
The Laredo, TX, insurance agents below can help you make a decision which insurance coverage you need, as some people have coverage questions and would like to have some advice when shopping around for cheaper insurance for welfare recipients. It can be challenging to find coverage yourself, and a licensed agent can provide satisfaction knowing you have adequate coverage when you need it most.
To find a Laredo insurance agent nearest to you, click the button after the list.
Farmers Insurance – Gabriel Medina
9807 Mines Rd #6 – Laredo, TX 78045 – (956) 645-2510
Beto Gonzalez – State Farm Insurance Agent
502 W Calton Rd #104 – Laredo, TX 78041 – (956) 726-0547
Insurance and Financial Services At Champions LLC
6019 McPherson Rd Ste 6 – Laredo, TX 78041 – (956) 717-5770