Who Has the Cheapest Car Insurance for Drivers with Bad Credit in Laredo?

Finding dependable, budget car insurance is difficult, and figuring out which company offers the most affordable insurance rates for drivers with bad credit requires even more perseverance. Every auto insurer uses slightly different criteria to set policy rates, so let’s begin by examining the most competitive insurance companies in Laredo.

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Cheapest Texas auto insurance companies
Rank Company Cost Per Year
1 Travelers $1,021
2 USAA $1,095
3 Texas Farm Bureau $1,235
4 Germania Mutual $1,244
5 California Casualty $1,382
6 Esurance $1,421
7 State Farm $1,450
8 Mercury $1,461
9 Nationwide $1,553
10 Safe Auto $1,597
11 Progressive $1,647
12 Allstate $1,667
13 Amica $1,775
14 Home State $2,155
15 GEICO $2,156
16 MetLife $2,161
17 Encompass $2,232
18 Unitrin $2,333
19 21st Century $2,421
20 Titan $2,594
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Travelers offers some of the cheapest car insurance rates in Laredo at around $1,021 annually. This is $883 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also qualify as some of the best Laredo, TX auto insurance companies.

As the rates illustrate above, if you are a policyholder with Germania Mutual and switched to Travelers, you could realize an annual premium reduction of in the neighborhood of $223. Insureds with California Casualty could save as much as $361 a year, and Esurance insureds might cut rates by $400 a year.

It’s important to note that these estimates are averages across all insureds and vehicles and are not factoring in an exact vehicle garaging location for drivers with bad credit. So the car insurance company that has the cheapest rates for you may not even be in the top 23 companies shown above. That emphasizes why you need to get rate quotes from many companies using your own driver data and vehicle information.

The car, truck, or SUV driven is one of the main factors when comparing affordable car insurance for drivers with bad credit. Vehicles with lots of horsepower, a lack of modern safety features, or a history of substantial liability claims will cost quite a bit more to insure than more economical and safe models. The table below features auto insurance prices for a selection of the most economical vehicles to buy insurance for.

Cheapest Vehicles to Insure in Laredo, TX
Vehicle Estimated Cost for Full Coverage
Ford Escape XLS 2WD $1,298
Honda Accord LX 4-Dr Sedan $1,416
Toyota Prius $1,436
Dodge Grand Caravan CV $1,449
Toyota Tacoma 4WD $1,456
Honda CR-V EX 2WD $1,462
Ford Focus S 4-Dr Sedan $1,503
Volkswagen Jetta SE 2.5 Station Wagon $1,518
Toyota RAV4 4WD $1,531
Chevrolet Silverado LS Regular Cab 2WD $1,534
Ford Explorer Limited 4WD $1,559
Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr $1,580
Ford F-150 STX Regular Cab 4WD $1,585
Toyota Corolla LE $1,613
GMC Sierra SLE Crew Cab 2WD $1,641
Hyundai Sonata GLS 4-Dr Sedan $1,644
Jeep Grand Cherokee Laredo 4WD $1,677
Nissan Altima 2.5 4-Dr Sedan $1,687
Chevrolet Impala LT $1,677
Ford Edge SEL AWD $1,693
Honda Odyssey EX W/Rear Entertainment $1,701
Chevrolet Malibu LT $1,711
Chevrolet Equinox LT 2WD $1,731
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Data rating is based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, multi-policy, multi-vehicle, claim-free, and safe-driver. Rates do not factor in garaging location in Laredo, TX which can revise auto insurance rates noticeably.

Looking at the data, you can presume that makes and models like the Ford Escape, Honda Accord, and Toyota Prius will definitely be the most affordable vehicles to insure for people with poor credit. The price for car insurance will be more expensive just because there is more claim risk for drivers with bad credit, but overall those models will tend to have the cheapest auto insurance rates compared to other vehicles.

The illustration below illustrates how your deductible choice can affect annual premium costs when trying to find cheap insurance for drivers with bad credit. The information is based on a married female driver, comprehensive and collision coverage, and no discounts are taken into consideration.

In the chart above, a 40-year-old driver could save $362 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $546 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old example, could drop their prices up to $900 each year by using a higher deductible.

When choosing a higher deductible, it will be required to have enough savings to allow you to pay the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.

Cost difference between full coverage and liability

Reducing the cost of insurance is important to the majority of vehicle owners, and one of the quickest ways to reduce the cost of insurance for drivers with bad credit is to buy liability only. The example below compares premium costs with full coverage and liability only. The prices are based on no driving violations, no at-fault accidents, $500 deductibles, single status, and no discounts are applied to the premium.

As an average for all age groups, physical damage coverage costs an additional $2,393 per year over liability only. That brings up the question when is the right time to remove full coverage. There is no definitive guideline that works best for making the decision to drop comp and collision coverage, but there is a general convention. If the annual cost of your full coverage insurance is more than 10% of the replacement cost minus the deductible, then it may be the right time to buy liability only.

For example, let’s pretend your vehicle’s replacement cost is $9,000 and you have $1,000 policy deductibles. If your vehicle is totaled, the most your company will settle for is $8,000 after paying your deductible. If you are paying over $800 a year for your policy with full coverage, then you may want to consider only buying liability coverage.

Why are you paying too much for car insurance?

Laredo, TX insurance rates are influenced by many factors that will increase or decrease the price you have to pay. Turning one year older, getting divorced, or having an at-fault accident can trigger changes in premium resulting in some companies being affordable when they were higher priced.

Not only that, but companies modify rates as needed to help ensure profitability. Significantly higher losses may cause increased rates, while profitable underwriting can produce lower-cost Laredo car insurance rates.

To illustrate this example, the chart below analyzes the cheapest car insurance in Laredo, TX for a 30-year-old female driver with no accidents or violations, and excellent credit. If we estimate rates based on her current rating profile, Travelers offers the most affordable car insurance rates in Laredo at $1,349 each year. This is $555 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance round out the rest of the best Laredo, TX auto insurance companies.

The chart below compares rates after we give the driver in the first example an accident claim, a lower credit rating, and a couple of points charged on her driving record. Due to the fact that each insurance company has a unique formula to set their prices, comparing quotes may now show a different set of the cheapest car insurance companies in Laredo as shown below.

State Farm now has the lowest car insurance rate in Laredo with Mercury, USAA, Safe Auto, and Nationwide completing the list. This illustrates why it is important to shop around with many companies when trying to get the lowest insurance quotes for drivers with bad credit.

Rates are calculated by many risk factors and change frequently, so the most economical option the last time you shopped around may now be priced much higher than other options.

The agencies below can most likely answer your questions and help you decide which is the best policy, since some drivers wish to have professional advice when comparing insurance rates for people with poor credit. It can be hard to find the best coverage yourself, and a licensed agent can provide comfort knowing your coverage gives you sufficient protection if you have a claim. To locate a Laredo insurance agent using an interactive map, click the button at the bottom of the list.

View map of Laredo, TX insurance agents

How to find more affordable auto insurance for drivers with bad credit

Here are some of the recommended money-saving solutions that can help you quote low-cost coverage.

The last item on the list is remarkably significant, as we emphasized in this article. Car insurance rates can change considerably based on profitability, so you should be ready to buy a policy from a new company if a lower-cost policy is available. Loyalty to a specific company is fine, but it isn’t a good idea if that stubbornness costs you lots of money. In just a couple of minutes you could compare prices and find cheaper auto insurance for drivers with bad credit in Laredo.