The words “cheap” and “auto insurance” probably shouldn’t be used in the same sentence, especially when you are looking for the best insurance rates for inexperienced drivers. Let’s get started by showing you some situations that determine car insurance prices, and see how we can help you reduce the price of your next policy.
For new drivers, one of the big factors that are used to help calculate car insurance rates is where you call home. Regions with more people or even just more weather-related claims tend to have higher rates, whereas areas with less people or fewer weather incidents tend to receive slightly lower rates.
The next table lists the most expensive cities in Texas for inexperienced drivers to purchase car insurance in. Laredo comes in at #2 with a yearly cost of $1,907 for the average policyholder, which is approximately $159 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Laredo | $1,907 |
| 3 | Dallas | $1,893 |
| 4 | Houston | $1,853 |
| 5 | Brownsville | $1,851 |
| 6 | Amarillo | $1,840 |
| 7 | Garland | $1,796 |
| 8 | Beaumont | $1,772 |
| 9 | Mesquite | $1,771 |
| 10 | Pasadena | $1,740 |
| 11 | Grand Prairie | $1,740 |
| 12 | Irving | $1,736 |
| 13 | San Antonio | $1,722 |
| 14 | Lubbock | $1,682 |
| 15 | Fort Worth | $1,670 |
| 16 | Carrollton | $1,664 |
| 17 | Austin | $1,659 |
| 18 | Arlington | $1,642 |
| 19 | Corpus Christi | $1,620 |
| 20 | McKinney | $1,609 |
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Premium costs are comparative as the specific area where the vehicle is garaged can influence auto insurance rates noticeably.
Determining which company offers the best auto insurance rates for inexperienced drivers takes a little more effort in order to find the best price. Each insurance company uses a different method to set premium rates, so we will examine the most competitive auto insurance companies in Laredo, TX.
Find Cheaper Car Insurance for Newbies
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,052 |
| 2 | USAA | $1,117 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,294 |
| 5 | Esurance | $1,421 |
| 6 | California Casualty | $1,438 |
| 7 | State Farm | $1,450 |
| 8 | Mercury | $1,476 |
| 9 | Nationwide | $1,538 |
| 10 | Safe Auto | $1,613 |
| 11 | Progressive | $1,664 |
| 12 | Amica | $1,705 |
| 13 | Allstate | $1,718 |
| 14 | GEICO | $2,072 |
| 15 | Home State | $2,155 |
| 16 | MetLife | $2,183 |
| 17 | Unitrin | $2,241 |
| 18 | Encompass | $2,301 |
| 19 | 21st Century | $2,396 |
| 20 | Titan | $2,568 |
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Travelers generally has some of the cheapest car insurance rates in Laredo at around $1,052 a year. This is $852 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the lowest-priced Laredo, TX car insurance companies.
In the rate table above, if you buy coverage from USAA and switched to Travelers, you could see an annual premium reduction of about $65. Customers with Texas Farm Bureau may save as much as $183 a year, and Germania Mutual customers might reduce prices by as much as $242 a year.
Understand that those prices are averaged for all types of drivers and the different vehicles they drive and do not factor in a specific zip code for inexperienced drivers. So the insurer that has the cheapest rates for you may not even be in the list above. That affirms the importance of why you need to get quotes using your own driver data and vehicle information.
The type of vehicle needing coverage is a significant factor when looking for the most affordable insurance for inexperienced drivers. Vehicles with lower acceleration and performance, good crash test ratings, or a track record of few liability claims will cost significantly less to insure than fast, unsafe models.
The next table shows coverage premiums for some of the more affordable vehicles to buy coverage for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Dodge Grand Caravan SE | $1,325 |
| Chevrolet Silverado LT Extended Cab 4WD | $1,397 |
| Toyota Camry LE | $1,403 |
| Jeep Grand Cherokee Laredo 2WD | $1,397 |
| Chevrolet Malibu LT | $1,422 |
| Ford Escape Limited 4WD | $1,461 |
| Chevrolet Impala LTZ | $1,471 |
| Honda CR-V EX-L 4WD | $1,478 |
| Nissan Altima Hybrid 4-Dr Sedan | $1,495 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $1,515 |
| Ford Explorer XLT 2WD | $1,524 |
| Honda Civic EX-L 4-Dr Sedan | $1,542 |
| Hyundai Elantra SE Touring Station Wagon | $1,569 |
| Ford Edge SEL AWD | $1,578 |
| Toyota Prius | $1,604 |
| Honda Odyssey EX-L W/Rear Entertainment | $1,680 |
| Volkswagen Jetta S 4-Dr Sedan | $1,707 |
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Above prices assume single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include multi-vehicle, multi-policy, safe-driver, claim-free, and homeowner. Rate quotes do not factor in zip code location which can raise or lower auto insurance rates noticeably.
Based upon these rates, you can see that vehicles like the Dodge Grand Caravan, Chevrolet Silverado, Toyota Camry, and Jeep Grand Cherokee should be the less-costly vehicles to insure for new drivers.
Insuring your vehicle with a highly-rated auto insurance company is hard considering how many companies provide coverage in Texas. The company rank data listed below can help you pick which insurers you want to consider when insurance shopping for inexperienced drivers.
These rankings are only comprised of companies that write coverage in many states, so companies that only write business in Texas or surrounding areas will not be included in this list. To check rates from these and other top-rated companies, simply click here.
Top 10 Major Car Insurance Companies in Laredo Ranked by Value
- Mercury Insurance
- Travelers
- American Family
- AAA Insurance
- Safeco Insurance
- Progressive
- The Hartford
- The General
- 21st Century
- Esurance
Top 10 Major Car Insurance Companies in Laredo Ranked by Customer Satisfaction
- USAA – 91%
- AAA Insurance – 90%
- Esurance – 90%
- Mercury Insurance – 89%
- Nationwide – 89%
- Travelers – 88%
- Progressive – 88%
- Safeco Insurance – 88%
- State Farm – 88%
- Allstate – 88%
Discounts on Laredo insurance rates
Insurance providers that provide policies for inexperienced drivers may provide discounts that can reduce rates by 35% or more if you qualify. A list of companies and the discounts they provide can be read below.
- State Farm may offer discounts for good student, driver’s education, Steer Clear safe driver discount, multiple policy, student away at school, and accident-free.
- American Family may have discounts that include air bags, Steer into Savings, TimeAway discount, defensive driver, early bird, and bundled insurance.
- GEICO offers discounts for daytime running lights, driver training, five-year accident-free, multi-vehicle, federal employee, and anti-lock brakes.
- 21st Century includes discounts for air bags, anti-lock brakes, teen driver, student driver, and driver training.
- Progressive policyholders can earn discounts including homeowner, good student, online quote discount, multi-vehicle, multi-policy, continuous coverage, and online signing.
The chart below compares car insurance costs with and without discounts applied to the policy premium. The information is based on a male driver, no accidents or driving violations, Texas state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with multiple policy, accident-free, homeowner, safe-driver, anti-theft, and multiple vehicle discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on auto insurance for inexperienced drivers is 28% or $827.
Should you buy full coverage?
Saving on auto insurance is probably important to the majority of people, and an easy way to find cheap insurance for inexperienced drivers is to buy liability only. The example below shows the difference between auto insurance costs with and without physical damage coverage. The price estimates are based on no accidents, no driving violations, $100 deductibles, single marital status, and no discounts are applied.
If all age groups are averaged, physical damage insurance costs an extra $2,922 per year more than just buying liability only. That is a large expense which might make you wonder if it’s worth it to buy full coverage. There is no set guideline to eliminate physical damage coverage on your policy, but there is a general guideline. If the annual cost of comprehensive and collision coverage is 10% or more of any settlement you would receive from your insurance company, then it might be time to buy liability only.
For example, let’s say your vehicle’s replacement value is $6,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most your company will settle for is $5,500 after you pay the deductible. If you are paying more than $550 a year to have full coverage, then you might want to consider buying only liability coverage.
How to find the cheapest auto insurance for inexperienced drivers
It’s not impossible to find cheaper rates, and here are some of the recommended penny-pinching ideas that can help Texas drivers find low-cost auto insurance.
- Don’t waste money on full coverage for older vehicles
- Lower rates by purchasing a safer vehicle
- Good credit can help you save money
- Raise your deductibles
- Avoid accidents and claims
- Tickets and violations raise rates
- Comparison shop at least once a year
That last tip is extraordinarily vital, as was affirmed in the prior information. Insurance prices in Laredo can change in a short period of time, so drivers shouldn’t be reluctant to switch to a new company if a more affordable price is available.
Sticking with a specific company is fine, but it’s not a good idea if that inflexibility results in costing you money that could be used for better things. It only take a few minutes to shop around and find cheaper car insurance for inexperienced drivers.