You have most likely watched the catchy commercials from auto insurance companies like Liberty Mutual and Nationwide promising big savings. So you should just pick the one with the catchiest commercial, right?
It’s not quite that easy, unfortunately, as there are a whole bunch of unknown elements such as how far you drive each year, if you need full coverage or just liability, and whether or not you own a home, that all go into determining the rate you pay. The information below covers the best ways to save on auto insurance and also should give you some help in finding cheaper rates.
One of the more important factors that are looked at to help calculate the cost of insurance is where you choose to live in Laredo. Cities with larger populations or higher claim trends tend to have more expensive auto insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower rates.
The following table shows the most expensive cities in Texas for young drivers to purchase car insurance in. Laredo comes in at #6 with an annual premium of $1,833 for the average policy, which is about $153 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Brownsville | $1,927 |
| 3 | Houston | $1,891 |
| 4 | Amarillo | $1,840 |
| 5 | Dallas | $1,837 |
| 6 | Laredo | $1,833 |
| 7 | Garland | $1,832 |
| 8 | Grand Prairie | $1,811 |
| 9 | Pasadena | $1,794 |
| 10 | Irving | $1,772 |
| 11 | Beaumont | $1,772 |
| 12 | Mesquite | $1,753 |
| 13 | Lubbock | $1,733 |
| 14 | San Antonio | $1,722 |
| 15 | Arlington | $1,642 |
| 16 | Corpus Christi | $1,620 |
| 17 | El Paso | $1,616 |
| 18 | Carrollton | $1,615 |
| 19 | Austin | $1,610 |
| 20 | McKinney | $1,609 |
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Price information shown is comparative as specific location information can revise prices noticeably.
The make and model of vehicle to be insured is a large factor when comparing cheap auto insurance for young drivers. Vehicles with lower acceleration and performance, good crash test ratings, or a low likelihood of liability claims will cost less to insure than fast, unsafe models. The data below features insurance rates for some of the cheapest vehicles to insure in Texas.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $5,012 |
| Honda CR-V EX 2WD | $5,022 |
| Ford Escape Limited 2WD | $5,063 |
| Toyota Prius | $5,445 |
| Ford Explorer Eddie Bauer 2WD | $5,618 |
| Dodge Grand Caravan SE | $5,627 |
| Ford F-150 XLT Super Cab 4WD | $5,671 |
| Volkswagen Jetta 2.0T Station Wagon | $5,771 |
| Honda Odyssey EX | $5,897 |
| Toyota RAV4 Limited 2WD | $5,947 |
| GMC Sierra SLE Crew Cab 2WD | $5,955 |
| Jeep Grand Cherokee Laredo 4WD | $5,947 |
| Chevrolet Malibu Hybrid | $5,957 |
| Chevrolet Equinox LS AWD | $5,947 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $6,000 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $6,218 |
| Hyundai Elantra SE 4-Dr Sedan | $6,274 |
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Above prices assume single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in your specific Laredo, TX location which can raise or lower insurance rates greatly.
Looking at the rates, you can expect models like the Honda Accord, Honda CR-V, Ford Escape, Toyota Prius, and Ford Explorer are some of the most budget-friendly vehicles to insure for youthful drivers. The price for car insurance will be more expensive because there is more inherent risk for young drivers, but generally speaking those specific models will most likely have the least expensive rates compared to other types of vehicles.
Best auto insurance in Texas
Buying coverage from the right insurance company can be a challenge considering how many different insurance companies sell coverage in Laredo. The ranking information shown below could help you select which insurers to look at when trying find the best insurance for young drivers. These ratings are for large nationwide companies, so smaller regional companies will not be included in the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| Mercury Insurance | 97 | 96 | 88 | 89% | A+ | 93.4 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
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Data Source: Insure.com Best Car Insurance Companies
Full coverage rates compared to liability-only
Lowering the price of auto insurance is the goal of the majority of drivers, and an effective way to pay lower rates for insurance for young drivers is to not buy comprehensive and collision coverage. The chart below shows the difference between auto insurance rates with and without physical damage coverage. The prices are based on no claims or violations, $500 deductibles, drivers are not married, and no discounts are applied.
If averaged for all ages, full coverage costs $2,393 per year over having just liability coverage. At some point, almost every driver questions when is the right time to remove full coverage. There is no set guideline of when to phase out physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of coverage is more than about 10% of replacement cost minus your deductible, then you might want to consider buying only liability coverage.
The Laredo car insurance agencies listed below can probably help you decide which insurance coverage you need, as some people prefer to have the advice of a professional agent when shopping for cheaper insurance for youthful drivers. It can be complicated to find the cheapest auto insurance company, so getting advice from a licensed agent can bring peace of mind knowing your coverage gives you adequate coverage if you have an accident or claim. To find an auto insurance agency near you, click the link at the bottom.
- Fred Loya Insurance
618 W Calton Rd – Laredo, TX 78041 – (956) 723-4414 - J and E Insurance
1701 S Malinche Ave – Laredo, TX 78046 – (956) 791-1633 - Farmers Insurance – Ricardo Rodriguez
5411 McPherson Rd #101 – Laredo, TX 78041 – (956) 726-1906 - Amco Insurance
505 Lafayette St – Laredo, TX 78041 – (956) 722-5300 - Laredo Commercial Insurance Agency
5711 McPherson Rd #202 – Laredo, TX 78041 – (956) 729-0799
Find a Laredo, TX insurance agent near you
How to find budget-friendly insurance for young drivers
It’s not impossible to find cheaper rates, and here are some thrifty suggestions that can help you quote cheap car insurance.
- Earn discounts for being claim-free
- Do not get tickets or violations
- Bundle home and auto and earn a discount
- Avoid accidents
- Good credit can save money
- Increase your deductibles
- Compare rate quotes frequently
The last tip in the list is particularly valuable, as we hit on in this write-up. Prices charged by companies adjust frequently, so drivers shouldn’t be resistant to buy a policy from a new company if a lower-cost policy is available. Many drivers prefer to stick with one company, but it isn’t a good idea if your bullheadedness ends up costing you money that could be used for better things. In less than five minutes you could shop around and find cheaper insurance for young drivers in Laredo.