One of the more important factors that are looked at to determine the price you pay for insurance is your zip code. More populated areas are more likely to pay higher prices, whereas areas with lower crime rates and fewer weather claims can boast about having cheaper rates.
The next table rates the most expensive places in Texas for first-time drivers to purchase car insurance in. Laredo is ranked #4 with an annual rate of $1,889 for the average policyholder, which is about $157 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Dallas | $1,911 |
| 3 | Houston | $1,909 |
| 4 | Laredo | $1,889 |
| 5 | Brownsville | $1,870 |
| 6 | Mesquite | $1,825 |
| 7 | Grand Prairie | $1,793 |
| 8 | Irving | $1,789 |
| 9 | Amarillo | $1,786 |
| 10 | Garland | $1,778 |
| 11 | Pasadena | $1,758 |
| 12 | Lubbock | $1,733 |
| 13 | Beaumont | $1,720 |
| 14 | Arlington | $1,709 |
| 15 | San Antonio | $1,688 |
| 16 | Carrollton | $1,664 |
| 17 | Corpus Christi | $1,636 |
| 18 | Austin | $1,627 |
| 19 | McKinney | $1,625 |
| 20 | El Paso | $1,616 |
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Rates are estimated as specific location information can revise premium rates substantially.
Comparing rates for low-cost auto insurance is tough enough, and finding out which company offers the lowest-priced auto insurance rates for first-time drivers requires even more shopping around. Every car insurance company has a different formula to determine premium rates, so first let’s look at the rankings for the overall cheapest auto insurance companies in Texas.
Keep in mind that Texas auto insurance rates are based on many factors which can significantly increase or decrease the price you pay for coverage. Simply having another birthday, filing a claim, or getting a few speeding tickets can trigger rate changes that can now make some companies affordable when they were higher priced.
Find Cheaper Auto Insurance for Inexperienced Drivers
Travelers has some of the lowest car insurance rates in Laredo at around $1,010 a year. This is $894 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the cheapest Laredo, TX car insurance companies.
As the rates illustrate above, if you are currently insured with Germania Mutual and switched to USAA, you may realize a yearly savings of around $149. Texas drivers with Esurance may save as much as $326 a year, and California Casualty insureds might lower prices by $329 a year.
If you want to find out if you’re overpaying, click here to start a quote or visit any of the companies below.
Be aware that those policy rates are averages across all drivers and vehicles in Texas and are not factoring in a specific zip code for first-time drivers. So the insurer that fits your needs best may not even be in the list above. That’s why you need to compare as many prices as possible using your own individual information.
Insurance rate increases from tickets or accidents
The ideal way to obtain low auto insurance rates in Laredo for new drivers is to drive attentively and have a clean driving record. The illustration below shows how traffic citations and at-fault collisions impact premium costs for each age group. The data is based on a single male driver, full physical damage coverage, $100 deductibles, and no discounts are taken into consideration.
In the chart above, the average cost of a car insurance policy per year with no accidents and a clean driving record is $2,181. Add in two speeding tickets and the average cost increases to $2,896, an increase of $715 each year. Now add two accidents along with the two speeding tickets and the yearly cost of auto insurance for first-time drivers jumps again to an average of $5,429. That’s an increase of $3,249, or $271 per month, just for not being a responsible driver!
Get discounts on Laredo auto insurance rates
Insurance providers that offer quotes for first-time drivers may have policy discounts that can reduce rates by 40% or more if you can meet the requirements. A few of the larger companies and some of the discounts are included below.
- State Farm includes discounts for multiple autos, accident-free, good driver, safe vehicle, good student, and multiple policy.
- Esurance may offer discounts for multi-policy, good driver, emergency road assistance, Pac-12 alumni, good student, and safety device.
- Progressive policyholders can earn discounts including online signing, good student, multi-policy, homeowner, and multi-vehicle.
- Liberty Mutual discounts include multi-policy, hybrid vehicle, new graduate, multi-car, new vehicle discount, and newly retired.
- Auto-Owners Insurance offers premium reductions for company car, good student, multiple vehicles, safe vehicle, group or association, and paid in full.
- GEICO has discounts for multi-vehicle, good student, five-year accident-free, multi-policy, and daytime running lights.
The chart below compares insurance premiums with and without some available policy discounts. The data is based on a male driver, no driving violations, no at-fault accidents, Texas state minimum liability limits, comprehensive and collision coverage, and $500 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with vehicle safety, paperless filing, continuous coverage, good student, anti-theft, and passive restraint discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on auto insurance for first-time drivers is 28% or $871.
Texas auto insurance companies ranked
Choosing the best auto insurance provider is difficult considering how many companies sell coverage in Texas. The company ratings below can help you choose which coverage providers you want to consider comparing rates with. The ratings below include the largest companies in the United States, so companies without a large exposure are not factored into 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 |
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Data Source: Insure.com Best Car Insurance Companies
If you have questions and prefer to have a little guidance when comparing insurance rates for first-time drivers, the agents listed below are willing to provide answers to your questions and help you determine which coverages you need. To locate a Laredo auto insurance agent using an interactive map, click the link at the bottom or click here to get price quotes now.
- Farmers Insurance – Carlos Nunez Jr.
1102 Marshall St #3 – Laredo, TX 78045 – (956) 763-2707 - Laurel Insurance
4519 San Bernardo Ave – Laredo, TX 78041 – (956) 723-3785 - Zimmerman Insurance
3515 N Arkansas Ave #107 – Laredo, TX 78043 – (956) 796-1115 - Farmers Insurance – Edgar Gonzalez
2702 Jaime Zapata Memorial Hwy #1 – Laredo, TX 78043 – (956) 284-0111