For high risk drivers, one of the largest considerations that aid in calculating the price you pay for insurance is your address in Laredo. Cities with more crime and/or more people are more likely to pay higher prices, whereas areas with less crime or weather claims benefit from lower prices.
The illustration below shows the most expensive places in Texas for high risk drivers to buy car insurance in. Laredo makes the list at #5 costing $1,851 for the average policyholder, which is about $154 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Brownsville | $1,927 |
| 3 | Houston | $1,909 |
| 4 | Dallas | $1,893 |
| 5 | Laredo | $1,851 |
| 6 | Garland | $1,850 |
| 7 | Amarillo | $1,840 |
| 8 | Mesquite | $1,825 |
| 9 | Pasadena | $1,812 |
| 10 | Irving | $1,772 |
| 11 | Grand Prairie | $1,757 |
| 12 | Lubbock | $1,733 |
| 13 | Beaumont | $1,720 |
| 14 | San Antonio | $1,688 |
| 15 | Fort Worth | $1,670 |
| 16 | Arlington | $1,658 |
| 17 | Carrollton | $1,647 |
| 18 | Austin | $1,627 |
| 19 | Plano | $1,608 |
| 20 | El Paso | $1,584 |
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Annual rates are comparative as vehicle location can change premium rates noticeably.
The make and model of vehicle driven is probably the largest consideration that determines the availability of low-priced auto insurance for high risk drivers. Vehicles with high performance, poor safety ratings, or an increased likelihood of liability claims will cost quite a bit more to insure than safer models.
The table below presents coverage prices for a number of the more affordable vehicles to buy coverage for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $4,847 |
| Ford Escape XLT 2WD | $4,894 |
| Toyota Prius | $5,272 |
| Dodge Grand Caravan CV | $5,308 |
| Volkswagen Jetta 2.0T Station Wagon | $5,316 |
| Ford F-150 XLT Crew Cab 2WD | $5,474 |
| Chevrolet Malibu Hybrid | $5,564 |
| Toyota RAV4 Sport 4WD | $5,569 |
| Ford Edge SE AWD | $5,730 |
| Chevrolet Equinox LS AWD | $5,792 |
| Toyota Tacoma Double Cab 4WD | $5,797 |
| Ford Explorer Eddie Bauer 4WD | $5,795 |
| Hyundai Elantra SE 4-Dr Sedan | $5,818 |
| Toyota Corolla LE | $5,826 |
| Chevrolet Impala LTZ | $5,818 |
| Jeep Grand Cherokee Limited 4WD | $5,872 |
| Ford Focus SEL 4-Dr Sedan | $5,945 |
| Toyota Camry SE | $6,046 |
| Honda Odyssey Touring | $6,111 |
| GMC Sierra SLT Crew Cab 2WD | $6,116 |
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Data rating is based on single male driver age 30, two speeding tickets, two at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include multi-policy, multi-vehicle, and homeowner. Rate quotes do not factor in Laredo, TX location which can decrease or increase coverage rates greatly.
Looking at the rates, makes and models like the Honda CR-V, Ford Escape, Toyota Prius, and Dodge Grand Caravan are most likely going to be the most affordable vehicles to insure for high risk drivers. The cost of auto insurance will be more costly because there is more liability exposure for high risk drivers, but overall those particular vehicles will most likely have the cheapest car insurance rates compared to other types of vehicles.
The example below illustrates how choosing a deductible can affect premium costs when quoting cheap insurance for high risk drivers. The premiums assume a single female driver, full physical damage coverage, and no discounts are applied.
As shown above, a 30-year-old driver could lower their policy premium by $468 a year by changing from a $100 deductible to a $500 deductible, or save $704 by selecting a $1,000 deductible. Even younger insureds, such as the 20-year-old chart data, could lower their rates up to $1,048 every year just by using higher deductibles.
When increasing deductibles, it is necessary to have additional funds in a savings account to offset the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Discount Laredo auto insurance rates
Auto insurance companies that offer coverage for high risk drivers may also give you premium discounts that can reduce rates by as much as 25% or more if you are eligible. Large insurance companies and a selection of discounts include:
- State Farm offers premium reductions for Steer Clear safe driver discount, driver’s education, accident-free, Drive Safe & Save, anti-theft, safe vehicle, and multiple autos.
- Progressive policyholders can earn discounts including multi-policy, online quote discount, good student, continuous coverage, homeowner, and online signing.
- Progressive may include discounts for online quote discount, homeowner, continuous coverage, online signing, good student, multi-policy, and multi-vehicle.
- MetLife includes discounts for accident-free, good driver, claim-free, good student, defensive driver, and multi-policy.
- Farm Bureau discounts include good student, driver training, renewal discount, safe driver, youthful driver, and 55 and retired.
- GEICO has discounts for good student, military active duty, federal employee, multi-vehicle, and seat belt use.
- SAFECO offers discounts including accident prevention training, bundle discounts, homeowner, anti-lock brakes, drive less, anti-theft, and safe driver.
The illustration below shows the difference between auto insurance rates with and without discounts applied to the policy premium. The price estimates are based on a female driver, one at-fault accident and three violations, Texas state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with multiple vehicle, multiple policy, anti-theft, continuous coverage, paperless filing, and homeowner discounts applied. In this example, the average amount saved each year on insurance for high risk drivers is 28% or $1,058.
Why you should be shopping around
Laredo, TX insurance rates are impacted by many factors which can significantly increase or decrease the price you pay for coverage. Simply having a birthday, getting married, or having an accident may generate price changes that can cause some rates to be cheaper than competitors. Additionally, insurance companies modify rates at least once a year as an adjustment for underwriting gains or losses. Higher than normal claim frequency or severity can cause a rate increase, while lower claim expenses may result in lower-cost Laredo car insurance rates.
To help illustrate this point, the bar chart below demonstrates which company has the cheapest car insurance in Laredo, TX for a 45-year-old male driver with no accidents, a clean driving record, and great credit. If we look at prices based on his personal profile, Travelers offers the cheapest car insurance rates in Laredo at $1,361 each year. This is $543 less than the average policy premium paid by Texas drivers of $1,904. USAA, Germania Mutual, Texas Farm Bureau, and Esurance also make the list of the cheapest Laredo, TX auto insurance companies.
In this example, we will give the driver from the first rate comparison some claims, bad credit, and a few blemishes on his driving record. Because every insurance company uses their own method to establish rates, comparing rates may result in a new list of affordable Laredo car insurance companies as shown below.
State Farm now has the cheapest price in Laredo, TX with USAA, Mercury, Nationwide, and Safe Auto now being in the top five. This demonstrates why it is critical to shop around with many companies when trying to find cheap auto insurance quotes for high risk drivers.
Rates are impacted by many risk factors and change dramatically, so the most economical option six months ago may now cost much more than other companies.