The car, truck, or SUV needing coverage is a significant factor when quoting the best cheap coverage for low income drivers. Vehicles with limited speed and performance, an excellent safety record, or low incidents of liability claims will cost significantly less to insure than fast, unsafe models. The table below presents insurance costs for the more affordable vehicles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$1,297|
|Honda CR-V EX 2WD||$1,302|
|Honda Accord LX 4-Dr Sedan||$1,297|
|Jeep Wrangler Unlimited Sahara 2WD 4-Dr||$1,386|
|Ford Escape Limited 4WD||$1,406|
|Honda Odyssey EX-L W/Navigation||$1,408|
|Jeep Grand Cherokee Limited 2WD||$1,435|
|Ford F-150 XLT Super Cab 2WD||$1,454|
|Chevrolet Silverado 3500HD LTZ Crew Cab 2WD||$1,485|
|Ford Edge SE 2WD||$1,521|
|Toyota RAV4 Limited 4WD||$1,536|
|Nissan Altima 2.5 4-Dr Sedan||$1,542|
|Dodge Grand Caravan SE||$1,555|
|Ford Explorer Eddie Bauer 2WD||$1,564|
|Ford Focus SE 4-Dr Sedan||$1,608|
|Toyota Camry XLE||$1,616|
|Chevrolet Equinox LS 2WD||$1,642|
|Volkswagen Jetta 2.0T 4-Dr Sedan||$1,645|
|GMC Sierra SLE Crew Cab 2WD||$1,651|
|Ford Fusion SE 4-Dr Sedan||$1,645|
|Toyota Corolla XRS||$1,652|
|Chevrolet Malibu LTZ||$1,645|
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Prices based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, multi-vehicle, claim-free, multi-policy, and safe-driver. Premium costs do not factor in specific location information which can increase or decrease coverage rates noticeably.
Based upon these rates, models like the Hyundai Elantra, Honda CR-V, Honda Accord, and Jeep Wrangler should be the cheaper vehicles to insure for poor drivers.
Finding out which company has the cheapest auto insurance rates for low income drivers will require a little more effort than just getting one or two price quotes.
Every car insurance company uses a slightly different approach to set policy rates, so let’s take a look at the auto insurance companies that tend to have lower prices in Laredo, TX.
Best Insurance Companies in Texas
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,235|
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Travelers may have some of the lowest car insurance rates in Laredo at around $1,021 annually. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the best Laredo, TX car insurance companies.
As the example above demonstrates, if you currently buy coverage from Esurance and switched to USAA, you might achieve an annual premium reduction of around $262. Customers with California Casualty might save as much as $279 a year, and State Farm policyholders might lower prices by $333 a year.
These premiums are averages for all insureds and vehicles and are not factoring in a specific zip code for low income drivers. So the insurer that has the cheapest rates for you may not even be in the list above. That helps illustrate why you need to quote rates from as many companies as possible using your own specific driver and vehicle information.
One of the many factors that are used to help calculate the price you pay for insurance is where your residence is in Laredo. More densely populated places tend to pay more, whereas areas that tend to be more rural have the benefit of cheaper car insurance.
The next table ranks the most expensive areas in Texas for low income drivers to buy an auto insurance policy in. Laredo is ranked at #4 with the yearly price of $1,889 for the average insurance policy, which is approximately $157 each month.
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Rate quotes are estimated as zip code location can raise or lower insurance rates significantly.
Drive responsibly or pay higher rates
The common sense way to receive cheap auto insurance premiums for poor drivers is to be a careful driver and avoid accidents and traffic citations. The diagram below illustrates how violations and accident claims drive up insurance premiums for each age group. The costs are based on a married female driver, full physical damage coverage, $250 deductibles, and no other discounts are factored in.
In the previous example, the average cost of an auto insurance policy per year with no violations or accidents is $2,091. Add in two speeding tickets and the average cost rises to $2,978, an increase of $887 each year. Next add two accidents along with the two speeding tickets and the yearly cost of auto insurance for low income drivers jumps again to an average of $6,229. That’s an increase of $4,137, or $345 per month, just for not being attentive to the road!
How to get discounts on Laredo car insurance rates
Insurance companies that offer quotes for low income drivers may additionally offer special discounts that may potentially lower prices by 25% or more if you meet eligibility requirements. Popular auto insurance companies and some of the discounts are included below.
- Esurance offers discounts including good student, multi-car, good driver, homeowner, safety device, and multi-policy.
- The Hartford may offer discounts for vehicle fuel type, defensive driver, bundle, driver training, air bag, and anti-theft.
- AAA offers discounts for multi-policy, AAA membership discount, good student, good driver, and multi-car.
- GEICO has savings for daytime running lights, federal employee, multi-vehicle, emergency military deployment, and anti-theft.
- State Farm offers premium reductions for defensive driving training, Steer Clear safe driver discount, accident-free, good driver, Drive Safe & Save, student away at school, and multiple autos.
The illustration below shows the comparison of premium costs with and without some available policy discounts. The rates are based on a female driver, no accidents, no driving violations, Texas state minimum liability limits, comp and collision included, and $100 deductibles.
The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with multiple vehicle, anti-theft, marriage, vehicle safety, claim-free, and defensive driving course discounts applied. When discounts are applied, the average amount saved each year on auto insurance for low income drivers is 28% or $570.
Why you should shop around
Laredo, TX auto insurance rates are impacted by many things which can significantly increase or decrease the price of coverage. Simply having a birthday, having a teen driver, or getting into an accident can produce rate changes that can make some companies cheaper than others.
Not only may your risk profile change, but insurers change rates without warning to adjust for heavy claims or excess profits. A period of increased losses may cause increased rates, while profitable underwriting can result in lower-priced Laredo car insurance rates.
To illustrate this example, the graph below shows the companies that have the cheapest car insurance in Laredo, TX for a 45-year-old female driver with no accidents, a clean driving record, and a high credit rating. Based on her personal profile, Travelers quotes the cheapest car insurance rates in Laredo at $1,232 per year. This is $672 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also on the list of the cheapest Laredo, TX auto insurance companies.
Now we will pretend the driver in the first chart an at-fault accident, a lower credit rating, and an imperfect driving record. Since every car insurance company has their own guidelines for determining rates in each state, comparing insurance quotes most likely will result in a different set of companies as shown below.
State Farm now has the lowest price on auto insurance in Laredo with Mercury, USAA, Safe Auto, and Nationwide now rounding out the top five. This example shows why it is critical to do a thorough rate comparison to get the most economical car insurance rates for low income drivers. Insurance prices can be altered by many risk factors and change substantially, so the most economical option when you last compared rates may now be an over-priced policy.
How to find low-cost insurance for low income drivers
Here are a few money-saving suggestions that can help you find low-cost coverage.
- Bundle home or renters insurance to earn a discount on car insurance
- Prevent rate increases by staying accident-free
- Avoid filing small claims
- Buy a car with high safety ratings
- Do not pay for full coverage on older vehicles
- Do not get traffic violations
- Ensure you have the best deal by shopping around regularly
The last tip is highly significant, as was pointed out in this article. Car insurance rates in Laredo fluctuate constantly, so drivers shouldn’t hesitate to change to a new company if a lower-cost policy is available. Brand loyalty is great, but it’s not recommended if it’s costing you a lot of money every month. It takes less than five minutes to compare rates and find cheaper auto insurance for low income drivers.
If you have coverage questions and would like to have some advice when trying to find the best insurance rates for low income drivers, the agencies below are a good start to aid you in deciding which policy is best.
To locate an agency by location nearest to you, click the button after the list.
Anabella Herbig – State Farm Insurance Agent
315 Calle Del Norte Dr #103 – Laredo, TX 78041 – (956) 725-1617
All Around Insurance Agency, LLC
3401 N Arkansas Ave – Laredo, TX 78043 – (956) 712-1255
FalconSure Insurance Agency
7718 McPherson Rd #3 – Laredo, TX 78045 – (956) 794-9700
Farmers Insurance – Edgar Gonzalez
2702 Jaime Zapata Memorial Hwy #1 – Laredo, TX 78043 – (956) 284-0111
Kevin Romo – State Farm Insurance Agent
7917 McPherson Rd #208 – Laredo, TX 78045 – (956) 753-9337