Things would sure be easy if we could just give you the name of the one company that has the cheapest rates in Texas. That is not the case, however, as there are a lot of unknown aspects like tickets or driving violations, the neighborhood you live in, if you need full coverage or just liability, and what deductibles you want to use, that all impact the cost of your policy. This article delves into the things that influence insurance rates and will hopefully give you a jump start in finding the best auto insurance in Texas.
For bad credit, one of the largest components that are looked at to determine car insurance rates is your zip code in Laredo. Areas with high crime rates or more dense population tend to have more expensive auto insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower coverage costs.
The table below sorts the most costly cities in Texas for low credit scores in which to buy car insurance. Laredo is ranked #5 having an annual price of $1,833 for car insurance, which is around $153 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Brownsville | $1,927 |
| 3 | Dallas | $1,855 |
| 4 | Houston | $1,853 |
| 5 | Laredo | $1,833 |
| 6 | Pasadena | $1,812 |
| 7 | Grand Prairie | $1,811 |
| 8 | Mesquite | $1,807 |
| 9 | Garland | $1,796 |
| 10 | Irving | $1,789 |
| 11 | Amarillo | $1,786 |
| 12 | Beaumont | $1,772 |
| 13 | San Antonio | $1,722 |
| 14 | Arlington | $1,709 |
| 15 | Lubbock | $1,665 |
| 16 | Fort Worth | $1,653 |
| 17 | Austin | $1,627 |
| 18 | McKinney | $1,625 |
| 19 | Carrollton | $1,598 |
| 20 | El Paso | $1,584 |
| 21 | Waco | $1,584 |
| 22 | Corpus Christi | $1,572 |
| 23 | Plano | $1,560 |
| 24 | Abilene | $1,515 |
| 25 | Killeen | $1,488 |
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Rate quotes are comparative as specific Laredo garaging address can increase or decrease premium rates significantly.
The make and model of vehicle you are trying to insure is one of the biggest factors when shopping around for the most affordable coverage for low credit scores. Vehicles with average performance, good safety features, or a low likelihood of liability claims will cost significantly less to insure than fast, unsafe models. The table below illustrates car insurance rates for some of the cheaper automobiles to buy coverage for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 4WD | $1,157 |
| Hyundai Elantra GLS Touring Station Wagon | $1,297 |
| Ford Edge Limited 2WD | $1,311 |
| Toyota RAV4 Limited 4WD | $1,338 |
| Jeep Grand Cherokee Laredo 2WD | $1,343 |
| Toyota Tacoma Double Cab 4WD | $1,364 |
| Ford Escape Limited 2WD | $1,422 |
| Toyota Corolla XRS | $1,435 |
| GMC Sierra SLT Extended Cab 2WD | $1,443 |
| Ford Fusion Sport 4-Dr Sedan | $1,435 |
| Toyota Prius | $1,443 |
| Ford Focus SES 2-Dr Coupe | $1,507 |
| Nissan Rogue SL AWD | $1,517 |
| Kia Optima EX | $1,534 |
| Toyota Camry Hybrid | $1,543 |
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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 claim-free, multi-vehicle, homeowner, safe-driver, and multi-policy. Price estimates do not factor in the specific area where the vehicle is garaged which can revise premiums greatly.
Looking at the rates, you can conclude that makes and models like the Honda CR-V, Hyundai Elantra, Ford Edge, and Toyota RAV4 are most likely going to be a few of the most affordable vehicles to insure for bad credit.
Determining which companies have the lowest-priced car insurance rates for low credit scores requires a little more sweat than just picking a company at random.
Each company has a unique formula to determine rates, so let’s look at the rankings for the car insurance companies with the overall best prices in Laredo. It’s important to understand that Texas car insurance rates are based on many factors which can significantly increase or decrease the policy price. Simply having a birthday, buying another vehicle, or getting a couple of tickets can cause premium changes that can make some companies much cheaper than others.
Cheap Insurance Rates in Texas
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,041 |
| 2 | USAA | $1,084 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,282 |
| 5 | Esurance | $1,407 |
| 6 | California Casualty | $1,438 |
| 7 | Mercury | $1,461 |
| 8 | State Farm | $1,510 |
| 9 | Safe Auto | $1,597 |
| 10 | Nationwide | $1,600 |
| 11 | Allstate | $1,650 |
| 12 | Progressive | $1,664 |
| 13 | Amica | $1,775 |
| 14 | Home State | $2,071 |
| 15 | GEICO | $2,135 |
| 16 | Encompass | $2,232 |
| 17 | MetLife | $2,249 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,396 |
| 20 | Titan | $2,672 |
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Travelers generally has some of the best car insurance rates in Laredo at around $1,041 per year. This is $863 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also rank well as some of the cheaper Laredo, TX auto insurance companies.
As illustrated above, if you buy coverage from Germania Mutual and switched to USAA, you could realize annual savings of upwards of $198. Drivers with Esurance might save as much as $323 a year, and California Casualty policyholders might lower prices by $354 a year.
These premiums are averages for all insureds and vehicles and do not factor in an exact location for low credit scores. So the insurer that fits your needs best may not even be in the top 23 companies shown above. That underscores the importance of why you need to get auto insurance quotes using your own driver and vehicle profiles.
How to get discounts on Laredo insurance rates
Insurance providers that offer quotes for low credit scores could also offer special discounts that may potentially lower prices by 40% or more if you meet specific criteria. A few popular companies and their possible discounts can be found below.
- State Farm may have discounts that include student away at school, anti-theft, multiple autos, driver’s education, accident-free, multiple policy, and good driver.
- Farmers Insurance includes discounts for distant student, alternative fuel, homeowner, teen driver, good student, mature driver, and business and professional.
- GEICO has savings for driver training, federal employee, daytime running lights, seat belt use, defensive driver, air bags, and membership and employees.
- American Family policyholders can earn discounts including accident-free, bundled insurance, TimeAway discount, good driver, and mySafetyValet.
- Nationwide offers discounts including business or organization, anti-theft, multi-policy, family plan, easy pay, good student, and defensive driving.
- Progressive discounts include good student, online quote discount, online signing, multi-policy, continuous coverage, and homeowner.
The information below visualizes the comparison of auto insurance costs with and without discounts applied to the policy rates. The rate quotes are based on a female driver, a clean driving record, no at-fault accidents, Texas state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows premium with no discounts. The lower bar shows the rates with vehicle safety, anti-theft, accident-free, defensive driving course, marriage, and safe-driver discounts applied. When these discounts are applied, theaverage yearly reduction on car insurance for low credit scores is 28% or $474.
Choosing the best car insurance company can be difficult considering how many different companies sell coverage in Laredo. The company information listed below can help you decide which car insurance providers you want to consider when shopping car insurance rates for low credit scores. The rankings below only include large nationwide companies, so companies that have a smaller presence are not included in this 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 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
| 21st Century | 86 | 82 | 90 | 84% | A | 86.4 |
| Liberty Mutual | 79 | 87 | 95 | 78% | A | 85.3 |
| Farmers Insurance | 77 | 80 | 80 | 84% | A | 80.3 |
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Data Source: Insure.com Best Car Insurance Companies
Cost of full coverage
Saving on car insurance is probably important to the majority of people, and a good way to lower the cost of insurance for low credit scores is to only pay for liability coverage. The illustration below compares insurance costs with full coverage compared to only the Texas minimum liability coverage. The data assumes no violations or claims, $500 deductibles, drivers are single, and no other discounts are factored in.
If averaged for all ages, physical damage insurance costs an additional $2,393 per year more than carrying just liability coverage. At some point, almost every driver questions if buying full coverage is a waste of money. There is no exact rule of when to exclude comprehensive and collision coverage on your policy, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, then you might consider buying liability only.
For example, let’s assume your vehicle’s replacement cost is $4,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most you would get paid by your company is $3,000 after paying your deductible. If it’s costing you more than $300 a year for full coverage, then it may be the right time to buy liability only.
How to find more affordable car insurance for low credit scores
The list below summarizes some penny-pinching solutions that can help drivers get low-cost car insurance.
- Serious violations like DUI or reckless driving can increase rates dramatically
- Drive a car with a high safety rating
- Improve your credit score
- Avoid accidents
- On older vehicles, drop full coverage
- Raise comprehensive and collision coverage deductibles
- Compare rates regularly to ensure the best deal
The final tip is highly valuable, as we pointed out in the article above. Car insurance prices in Laredo can be changed at any time, so don’t be unwilling to buy a policy from a new company if a lower price can be found. Being loyal to a particular company is commendable, but we do not recommend it if it’s costing you a fortune every year. If you have a few minutes, now is a great time to shop around and find cheaper insurance for low credit scores.
If you aren’t sure which coverage to buy and prefer to have professional advice when comparing insurance rates for bad credit, the agents below are a good start to provide answers to your questions and help you determine which car insurance company is the best fit.
To find a Laredo insurance agency close to you, click the button at the bottom of the list or click here to compare prices now.
Texas Farm Bureau Insurance – Juancarlo Rendon
507 E Expy 83 – Pharr, TX 78577 – (956) 787-8844
All Around Insurance Agency, LLC
3401 N Arkansas Ave – Laredo, TX 78043 – (956) 712-1255
Medina Wright Insurance
1419 Clark Blvd – Laredo, TX 78040 – (956) 722-4618
Laredo Commercial Insurance Agency
5711 McPherson Rd #202 – Laredo, TX 78041 – (956) 729-0799