You have most likely watched the captivating ads from auto insurance companies like Allstate and Liberty Mutual that say if you switch you’ll get the cheapest price, so drivers should just pick one randomly, right?
Regrettably, it’s not quite that easy, as there are a lot of unknown aspects like if you are a homeowner or renter, the safety ratings of your vehicle, the number of miles you drive in a year, and where you live in Laredo, that help determine the price you have to pay. In this article, we will cover the best ways to pay less and should give you a good beginning to your search for cheaper coverage.
The car, truck, or SUV that is being insured is a significant factor when looking for the cheapest auto insurance for drivers under 21. Vehicles with reasonable performance levels, good crash test ratings, or low incidents of liability claims will cost less to insure than high performance models.
The table below presents coverage premiums for some of the most affordable vehicles to insure in Texas.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $2,444 |
| Hyundai Elantra GLS Touring Station Wagon | $2,449 |
| Ford Escape XLS 2WD | $2,444 |
| Honda Accord EX-L 4-Dr Sedan | $2,635 |
| Toyota Prius | $2,671 |
| Chevrolet Impala LS | $2,860 |
| Ford Focus S 4-Dr Sedan | $2,866 |
| Ford Edge SE AWD | $2,860 |
| Volkswagen Jetta S 4-Dr Sedan | $2,896 |
| Chevrolet Equinox LS 2WD | $2,903 |
| Jeep Grand Cherokee Laredo 2WD | $2,896 |
| Toyota RAV4 Sport 2WD | $2,903 |
| Nissan Altima 2.5 4-Dr Sedan | $2,896 |
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Cost estimates assume single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in the specific area where the vehicle is garaged which can raise or lower price quotes greatly.
Based upon the table data, we can tell that cars like the Honda CR-V, Hyundai Elantra, Ford Escape, and Honda Accord are most likely to be a few of the less-costly vehicles to insure for minors. The price for an auto insurance policy will tend to be more expensive anyway just due to the fact that there is more risk for drivers under 21, but overall those models will probably have the cheapest rates compared to other vehicles.
Finding out which company has the cheapest car insurance rates for drivers under 21 will take a bit more effort in order to find coverage that fits your budget. Every insurance provider has a unique approach to establish rates, so let’s look at the rankings for the lowest cost car insurance companies in Texas.
It’s a good idea to be aware that Laredo, TX car insurance rates are impacted by many factors that will increase or decrease the cost of your policy. Improving your credit rating, buying a home, or getting into an accident may cause policy rate changes that may make certain companies more affordable than others.
Lowest Insurance Price Quotes for Minors
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,010 |
| 2 | USAA | $1,117 |
| 3 | Texas Farm Bureau | $1,199 |
| 4 | Germania Mutual | $1,282 |
| 5 | Esurance | $1,365 |
| 6 | California Casualty | $1,396 |
| 7 | Mercury | $1,476 |
| 8 | State Farm | $1,510 |
| 9 | Nationwide | $1,538 |
| 10 | Safe Auto | $1,549 |
| 11 | Allstate | $1,650 |
| 12 | Progressive | $1,698 |
| 13 | Amica | $1,775 |
| 14 | GEICO | $2,072 |
| 15 | Home State | $2,134 |
| 16 | MetLife | $2,161 |
| 17 | Encompass | $2,301 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,421 |
| 20 | Titan | $2,568 |
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Travelers may have some of the most affordable car insurance rates in Laredo at around $1,010 each year. This is $894 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also are some of the most economical Laredo, TX auto insurance companies.
As the rates illustrate above, if you currently have a policy with Germania Mutual and switched to USAA, you could earn an annual savings of approximately $165. Texas drivers with Esurance might save as much as $248 a year, and California Casualty insureds might see rate reductions of $279 a year.
Understand that those policy prices are averaged across all types of insureds and vehicles and and are not figured with an exact zip code location for drivers under 21. So the insurer that is most affordable for your situation may not even be in the top 23 companies in the list above. That affirms the importance of why you need to compare as many prices as possible using your own individual information.
Selecting a good quality car insurance company can be difficult considering how many companies there are to choose from in Texas. The company rank data shown below can help you decide which companies to look at when comparing insurance rates for drivers under 21.
The rankings below are only made up of companies that write coverage in many states, so smaller regional companies will not be included in this list. If you would like to check rates from these and other companies in Texas, click here.
| 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
The chart below demonstrates how choosing different deductibles can influence yearly insurance costs when researching cheap insurance for drivers under 21. The information is based on a single male driver, comprehensive and collision coverage, and no discounts are applied.
In the chart above, a 40-year-old driver could pocket $314 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $472 by selecting a $1,000 deductible. Youthful drivers, like the age 20 example, could shave up to $1,026 each year just by using higher deductibles.
When increasing deductibles, it will be required to have additional funds in a savings account to enable you to pay the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
How to find the cheapest insurance for drivers under 21
The list below summarizes a few thrifty suggestions that can help Laredo drivers find cheap auto insurance.
- Staying accident-free helps keep rates low
- Drop full coverage on older vehicles
- Higher deductibles mean lower rates
- Serious violations like DUI or reckless driving can increase rates dramatically
- Get cheaper liability coverage by choosing a safer vehicle
- Drivers with good credit often pay less
- Comparison shop frequently
The last idea is particularly significant, as was stressed in this write-up. Prices charged by companies go up and down frequently, so don’t be tentative to buy from a new company if a cheaper rate is available. Many drivers tend to have loyalty to a certain company, but it’s not a great idea if that loyalty ends up costing hundreds every year. In just a couple of minutes you could shop around and find cheaper car insurance for drivers under 21 in Laredo.