The words “cheap” and “auto insurance” really shouldn’t be used in the same sentence, especially when you are searching for the lowest insurance prices for infrequent drivers. Because it’s so expensive, let’s lead off by showing you some of the things that have an impact on auto insurance rates, and find some ways to lower the cost of the next policy you buy.
For low mileage drivers, one of the big factors that are looked at to determine the price you pay for insurance is where your residence is. Cities with larger populations or higher claim trends tend to have more expensive car insurance rates, whereas areas with less congestion benefit from lower prices.
The information below ranks the most expensive places in Texas for infrequent drivers in which to purchase auto insurance. Laredo shows up at #4 with the annual price of $1,907 on average, which is about $159 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Brownsville | $1,927 |
| 3 | Dallas | $1,911 |
| 4 | Laredo | $1,907 |
| 5 | Houston | $1,853 |
| 6 | Amarillo | $1,840 |
| 7 | Pasadena | $1,812 |
| 8 | Grand Prairie | $1,811 |
| 9 | Garland | $1,796 |
| 10 | Mesquite | $1,753 |
| 11 | Irving | $1,736 |
| 12 | San Antonio | $1,722 |
| 13 | Beaumont | $1,720 |
| 14 | Arlington | $1,692 |
| 15 | Lubbock | $1,682 |
| 16 | Fort Worth | $1,670 |
| 17 | Carrollton | $1,664 |
| 18 | Austin | $1,659 |
| 19 | El Paso | $1,632 |
| 20 | Plano | $1,624 |
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Premium amounts are approximated as specific Laredo garaging address can modify price quotes greatly.
The type of vehicle requiring coverage is one of the primary factors when trying to find the most affordable coverage for infrequent drivers. Vehicles with lower acceleration and performance, an excellent safety record, or a track record of few liability claims will cost much less to insure than fast, unsafe models.
The table below showcases auto insurance rates for a number of the cheaper vehicles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra SE Touring Station Wagon | $1,229 |
| Volkswagen Jetta 2.0T Station Wagon | $1,326 |
| Jeep Grand Cherokee Laredo 2WD | $1,343 |
| Ford F-150 XL Regular Cab 2WD | $1,353 |
| Honda CR-V LX 4WD | $1,391 |
| Ford Escape XLT 4WD | $1,425 |
| GMC Sierra 2500HD SLE Crew Cab 4WD | $1,440 |
| Ford Focus SE 2-Dr Coupe | $1,510 |
| Ford Edge Limited 2WD | $1,515 |
| Honda Odyssey EX | $1,523 |
| Honda Accord EX-L 2-Dr Coupe | $1,537 |
| Toyota Camry Hybrid | $1,545 |
| Toyota Prius | $1,549 |
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Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, homeowner, multi-policy, multi-vehicle, and claim-free. Premium costs do not factor in specific Laredo, TX garaging location which can lower or raise premium rates considerably.
Based on these rates, we can assume that vehicles like the Hyundai Elantra, Volkswagen Jetta, Jeep Grand Cherokee, and Ford F-150 are most likely going to be some of the less-costly vehicles to insure for low mileage drivers.
Types of discounts on Laredo auto insurance rates
Auto insurance companies that offer cheap quotes for infrequent drivers could also offer price discounts that can reduce rates by as much as 35% or more if you qualify. A list of insurance companies and the discounts they provide are outlined below.
- American Family may have discounts that include air bags, Steer into Savings, good student, good driver, bundled insurance, multi-vehicle, and mySafetyValet.
- Nationwide may offer discounts for multi-policy, anti-theft, business or organization, good student, and defensive driving.
- MetLife offers discounts including good driver, defensive driver, claim-free, accident-free, good student, and multi-policy.
- 21st Century discounts include automatic seat belts, theft prevention, early bird, good student, driver training, and air bags.
- Farmers Insurance may include discounts for electronic funds transfer, mature driver, business and professional, alternative fuel, pay in full, distant student, and bundle discounts.
- Allstate has savings for early signing, farm vehicle, FullPay discount, economy car, new car, auto/life discount, and premier discount.
The illustration below illustrates the difference between annual premium costs with and without policy discounts. The premium estimates are based on a female driver, no claims, a clean driving record, Texas state minimum liability limits, comprehensive and collision coverage, and $500 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with claim-free, marriage, homeowner, accident-free, vehicle safety, and multiple policy discounts applied. With discounts applied, theaverage amount saved on insurance for infrequent drivers is 28% or $474.
Comparison of full coverage and liability-only policies
Saving on insurance is important to the majority of drivers, and one of the easiest ways to save on the cost of insurance for infrequent drivers is to not insure for full coverage. The information below compares auto insurance costs with and without physical damage coverage. The premiums assume no claims or violations, $100 deductibles, single marital status, and no additional discounts are factored in.
If the expense is averaged for all age categories, physical damage coverage costs $2,181 per year more than just buying liability only. That is a big expense that brings up the question if buying full coverage is a good investment. There is no definitive rule to stop paying for physical damage coverage, but there is a guideline you can use. If the yearly cost of full coverage is more than about 10% of any settlement you would receive from your insurance company, then you might consider buying liability only.
For example, let’s say your vehicle’s book value is $4,000 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, the most your company will settle for is $3,000 after paying the physical damage deductible. If you are paying over $300 a year for physical damage coverage, then it may be the right time to buy liability only.
There are some circumstances where dropping full coverage is not financially feasible. If you still owe money on your vehicle, you must maintain physical damage coverage to satisfy the loan requirements. Also, if your finances do not allow you to purchase a different vehicle if your current one is damaged, you should not buy liability only.
Compare quotes and save
Laredo, TX insurance rates are based on many factors that control the price you pay. Improving your credit rating, filing a claim, or getting a driving violation may cause policy rate changes resulting in some rates now being cheaper than competitors. Not only may things change on your end, but companies modify pricing as often as every three months to reflect underwriting profits or losses. Larger than normal claims can cause higher prices, while long-term profits may cause lower-cost Laredo car insurance rates.
For instance, the bar chart below demonstrates which company has the cheapest car insurance in Laredo, TX for a 40-year-old male driver with no violations or accidents, and a good credit rating. If we estimate prices based on his current rating profile, Travelers has the most affordable car insurance rates in Laredo at $1,260 each year. This is $644 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are also on the list of the cheapest Laredo, TX auto insurance companies.
The example below compares rates after we give the driver from above some claims, slightly worse credit, and a speeding ticket. Since every car insurance company has their own unique process to determining premium rates, comparing quotes could now result in a different set of the cheapest car insurance companies in Laredo as shown below.
State Farm now has the best car insurance rate in Laredo with Mercury, USAA, Safe Auto, and Nationwide now being in the top five. This illustrates why consumers need to do a thorough rate comparison to get the cheapest car insurance quotes for infrequent drivers.
Insurance rates are calculated by many risk factors and change substantially, so the best price the last time you shopped your coverage around may now cost much more than other companies.
How to find the cheapest insurance for infrequent drivers
The list below shows some of the recommended thrifty solutions that can help drivers get cheap car insurance.
- If your vehicles are older, consider dropping full coverage
- Buy a safer vehicle
- Multi-policy discounts save money
- Try to pay small claims out-of-pocket
- Prevent rate increases by staying accident-free
- Tickets and violations raise rates
- Compare rates regularly to ensure the best deal
The last tip in the list is incredibly crucial, as we hit on in this article. Rates can be changed at any time, so don’t hesitate to buy a policy from a new company if a more affordable price is available.
Staying with the same car insurance company is fine, but is isn’t recommended if that loyalty results in overpaying thousands of dollars over several years. It only takes a couple minutes to compare prices and find cheaper car insurance for infrequent drivers in Laredo.
The Laredo, TX, insurance agents below can answer your questions and help you decide which coverage fits your budget, as some people prefer to have some professional guidance when buying car insurance for infrequent drivers. It can be time-consuming to find the cheapest car insurance policy, so using a licensed agent can give satisfaction knowing you have adequate coverage when you need it most. To find a Laredo insurance agency close to you, click the button at the bottom of the list or click here to compare price quotes.
- Alphasure Affordable Insurance Services
1620 Chihuahua St – Laredo, TX 78043 – (956) 729-9500 - Allstate Insurance Agent: Raul R. Martinez Jr
3802 TX-359 Ste 5 – Laredo, TX 78043 – (956) 729-8884 - Farmers Insurance – Rene Benavides
8218 Casa Verde Rd, A-5 – Laredo, TX 78041 – (956) 723-9511 - Lozano Insurance
519 E Gustavus St – Laredo, TX 78040 – (956) 725-2167 - State Farm: Manuel Gomez III
4311 Clark Blvd – Laredo, TX 78043 – (956) 333-0000