Laredo, TX Car Insurance
How much does car insurance cost in Laredo?
Car insurance in Laredo costs an average of $1,107 for a six-month policy or $185 per month on average. In 2022, our data shows Germania Mutual Group is the cheapest car insurance company in Laredo with rates at $694 for a six-month policy.
Laredo drivers pay more than the average for car insurance in Texas ($985 every six months) and more than the national average of $742. In fact, 42% of our customers in Laredo admit they're paying too much for their car insurance. If you agree or just need help with your car insurance, read on to learn more about what a fair rate looks like in Laredo based on common factors like credit score, coverage level and more.
| Car Insurance in Laredo vs. Texas | Avg. 6 Mo. Premium |
|---|---|
| Laredo Average | $1,107 |
| Texas Average | $993 |
The cheapest car insurance companies in Laredo
Germania Mutual Group is the cheapest company at $116 per month or $694 for a six-month policy.
GEICO comes in second in affordability, with average rates at $769 for a six-month policy.Â
Finally, Laredo's third-cheapest company is Redpoint County Mutual. A Redpoint policy costs an average of $136 per month or $813 for a six-month policy.
The Zebra's key takeaways about car insurance in Laredo:
- The average cost of a car insurance policy in Laredo is $1,107 per six-month policy — $185 per month.
- The cheapest company in Laredo is Germania Mutual Group ($694).
- 42% of Zebra customers in Laredo stated they used our product because they were paying too much for car insurance with their current provider.
Are you paying too much for auto insurance?
Laredo car insurance rates by company
Our 2022 data names Germania Mutual Group as the cheapest car insurance company for full coverage in Laredo at $694 for a six-month policy ($116 per month). The second cheapest is GEICO with average rates at $128 per month or $769 for six months.Â
Learn more about top-rated car insurance companies based on The Zebra's Customer Satisfaction Survey.
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Cheapest car insurance companies in Laredo, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| Germania Mutual Group | $694 |
| GEICO | $769 |
| Redpoint County Mutual | $813 |
| State Farm | $899 |
| USAA | $932 |
| Nationwide | $997 |
| Allstate | $1,407 |
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Shop around for the best rates
The only way to know which company is the cheapest coverage for you is to compare. Our comparison will do the leg work for you. Enter your ZIP code to see rates from GEICO, Allstate, State Farm and Nationwide (+ other top companies) to find the best and cheapest car insurance in Laredo.
Average car insurance in Laredo by rating factor
Car insurance premiums are calculated when insurance companies assess a set of rating factors belonging to each individual policyholder. These details about you, including age, location, credit, driving history and more, dictate how much or how little you will pay in insurance premiums. Most companies use the same rating factors, though some place more importance on some more than others.
The best car insurance company for you could change as your circumstances change, so it's important to get a quote from time to time to guarantee you're still getting the best rates.Â
Q: I didn't have an accident — Why is my insurance going up?
A: End-of-year earnings (revenue of premiums versus the cost of paying insureds’ claims) is also a major rating factor for how much you will pay for car insurance in Laredo. Even if you’ve had no claims with your insurance company, you could still be paying more with a particular insurance company because the price of doing business has increased in Laredo.
Auto insurance premiums by age in Laredo
A driver's age is one of the most prominent rating factors when it comes to car insurance. The data insurance companies use to determine how likely drivers are to get into accidents often names teen drivers as the group with the highest accident rate. As a result, this age group faces the highest insurance premiums: in Laredo, the difference in rates paid by teenage drivers and drivers in their 20s is $1,734, the largest such difference between any two age groups for a new car insurance policy.
If this sounds unfair, it's important to remember that insurance companies are in the business of risk management. By charging higher rates for teen drivers, they are able to offset the increased cost of paying claims.Â
Cheapest car insurance companies for teen drivers in Laredo, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| Redpoint County Mutual | $813 |
| Germania Mutual Group | $1,597 |
| GEICO | $1,793 |
| USAA | $1,995 |
| State Farm | $2,758 |
| Nationwide | $3,524 |
| Allstate | $5,788 |
| Age Bracket | Cheapest Companies | Avg. 6 Mo. Premium |
|---|---|---|
| 20s | Redpoint County Mutual | $813 |
| 30s | Germania Mutual Group | $736 |
| 40s | Germania Mutual Group | $708 |
| 50s | Germania Mutual Group | $648 |
| 60s | Germania Mutual Group | $643 |
| 70s | Germania Mutual Group | $734 |
Zebra Tip:Â The cheapest companies for Laredo drivers between 20-40 are Germania Mutual Group, GEICO, and Redpoint County Mutual
Our data tells us that drivers between the ages of 20-40 make up the bulk of Laredo drivers. On average, this group pays $1,249 every six months. By going with these companies, these groups can potentially save 33%.
Auto insurance premiums for minimum coverage in Laredo
The level of coverage you choose for your vehicle also has a major effect on insurance premiums. Drivers are only legally required to carry a certain amount of coverage, based on the state they live in and any requirements mandated by a lending association. Our data indicates that 19% of Laredo drivers have the state minimum coverage. While this meets legal requirements, having only minimum coverage can put you at risk of being underinsured.
State minimum liability coverage does not include collision coverage or comprehensive coverage. These coverages protect you in the event of an accident, and without them, you could be left paying out of pocket for repairs. Commonly known as "full coverage" when purchased together, these coverages require a deductible and will increase your rates, but offer a broader range of protection overall.
Roadside assistance or uninsured motorist coverage are other common optional coverages that can protect you in times of crisis. More coverages mean higher premiums, but the experts at The Zebra still recommend considering them to ensure you are never left underinsured.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
In an analysis of our data, 43% of drivers in Laredo have owned vehicles. If you are not leasing or financing your vehicle, you should consider if dropping comprehensive or collision coverage is right for you. We recommend getting the actual cash value of your vehicle via Kelley Blue Book or another reputable source. The general rule of thumb is if your vehicle is worth less than $4,000, you probably don't need collision coverage. Bear in mind, however, that dropping these coverages means that you will have to pay for any repairs out of your own pocket.
Cheapest car insurance companies for minimum coverage in Laredo, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| Germania Mutual Group | $216 |
| GEICO | $232 |
| USAA | $318 |
| Redpoint County Mutual | $333 |
| Allstate | $338 |
| State Farm | $367 |
| Nationwide | $480 |
| Coverage Bucket | % of The Zebra Customers |
|---|---|
| Minimum | 19% |
| Basic | 42% |
| Better | 27% |
| Best | 12% |
- Minimum: State liability coverage only
- Basic: State liability + collision and comprehensive (full) coverage
- Better: Better liability limits at 50/100/50. Full coverage included with towing and rental car benefits. May include additional personal medical benefits and uninsured/underinsured motorist coverage.
- Best: Best liability limits at 100/300/50. Full coverage included with better towing and rental car benefits and better personal medical benefits and increased uninsured/underinsured coverage.
Most of our customers in Laredo opt for the basic level of coverage, but this may not be the best option for everyone. While we understand state minimum coverage is a budget-friendly solution, it does leave you at risk for damages that exceed your liability limits. Texas' 30/60/25 liability limits provide coverage for damage you cause up to $30,000 per person in bodily injury, $60,000 per accident in bodily injury and $25,000 for property damage. While this may be sufficient for most standard car accidents, it might not be for bodily injury claims or multi-vehicle accidents.
Learn more about insurance laws in Texas.
| Vehicle Ownership | % of The Zebra Customers |
|---|---|
| Owned | 43% |
| Leased | 50% |
| Financed | 7% |
Laredo car insurance rates by credit score
Your credit level is another rating factor taken into consideration by insurance companies. Some states have banished this practice, but Texas is not yet one of them. Credit score has been a rating factor in car insurance because data suggests a correlation between a driver's credit tier and the likelihood they will file claims, have lapses and engage in risky driving behavior. Bad credit is associated with a higher risk to insure, so these drivers tend to get strapped with higher premiums.Â
In fact, Laredo drivers with poor credit (300-579) pay 108% more than drivers with excellent credit (800-850). Our data tells us most drivers in Laredo have a "Good" credit score. In 2022, Germania Mutual Group is the cheapest option for Laredo drivers for this credit range.
Cheapest car insurance companies for bad credit in Laredo, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| Redpoint County Mutual | $813 |
| GEICO | $1,168 |
| Germania Mutual Group | $1,276 |
| Nationwide | $1,567 |
| State Farm | $1,849 |
| USAA | $1,861 |
| Allstate | $2,135 |
Zebra Tip: If you recently improved your credit score, shop around for car insurance!
In Laredo, our data shows drivers with "Fair" credit pay $1,096 less for car insurance in a year than drivers with "Poor" credit. If you have recently paid off a loan or other credit-improving actions, check your preferred credit monitoring software to see if your recent efforts could save you on your car insurance!
Auto insurance rates with an at-fault accident
Among all types of insurance claims, at-fault and collision-type accidents are the most common. These types of claims will raise car insurance rates significantly. In fact, according to our data, an at-fault accident raised rates in Laredo from $185 to $290 per month. The cheapest insurance company in Laredo for drivers with an at-fault accident is Redpoint County Mutual.
The most effective way to keep your insurance rates low is by avoiding accidents and citations to the best of your ability. Speeding tickets, reckless driving charges, DUIs and at-fault accidents will all result in rate increases. Your premium will typically be impacted for three to five years depending on the severity of the infraction.Â
Cheapest car insurance companies after an at-fault accident in Laredo, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| Redpoint County Mutual | $813 |
| Germania Mutual Group | $856 |
| State Farm | $1,069 |
| GEICO | $1,090 |
| USAA | $1,412 |
| Nationwide | $1,649 |
| Allstate | $2,146 |
Laredo car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in Laredo.
Car insurance rate increases after violations and citations in Laredo, TX
Why is car insurance in Laredo so expensive?
There is a variety of reasons why car insurance in Laredo is so expensive. It exceeds the average six-month rate for the state of Texas as well as the nationwide average. Laredo is one of Texas's top ten most populous cities, which may help explain the higher costs. Your coverage level, driving history, and credit score also have a large impact on individual rates.
Below you'll find a rundown of why car insurance is so expensive in Laredo — regardless of your driving profile.
Location
Laredo, known as the "Gateway City," sits right on the Texas border to Mexico. It is so high in population that it has made Texas' top 10 most populous cities. Population density is another contributing factor to auto insurance rates; more people often means more drivers and a higher likelihood of accidents.
Car insurance is dependent on ZIP code, so where you live in Laredo will have an impact on your rates. Theft, crime, and uninsured motorist vary by neighborhood, making some areas safer (and less risky to insurance companies) than others.
Rates by ZIP code
Expensive Laredo ZIP codes:Â 78043, 78046, 78049
Cheap Laredo ZIP codes:Â 78045, 78041, 78040
Weather risk
While Laredo is relatively safe from hurricanes and other similar weather-related damage as it is situated on the opposite side of the state to the Gulf of Mexico, Texas faces several other weather risks throughout the state. According to the Insurance Information Institute, Texas ranked number one in the country for hail events for 2021[1]. Catastrophes like this, as well as wind, tornadoes and wildfires, still plague Texas and cause car insurance companies to raise rates to anticipate these losses.Â
These weather events are likely to cause damage to your vehicle. The comprehensive coverage section of your insurance policy will protect you in case of a loss due to these perils. If you have a new or nice vehicle, we definitely recommend considering comprehensive coverage as part of your Laredo car insurance policy.
Zebra Tip: Use your comprehensive coverage to protect your vehicle against weather events
Damage caused by weather-related events is covered under comprehensive coverage. If you're worried about flooding or other weather-related events damaging your vehicle, consider if this coverage is right for you.
Number of drivers
With Laredo being one of the top ten most populous cities in Texas, one can imagine there are a lot of drivers on the road. With more cars on the road, more accidents are inevitable. The costs of accident-related claims are typically passed along to other drivers in the area through higher premiums — even for safe or occasional drivers.
According to our data, about 33% of drivers in Laredo are not currently insured. If you’re hit by an uninsured driver in Laredo, you could be left paying for the damage yourself.
The Zebra's customers in Laredo by insured status
| Insured Status | % of The Zebra Customers |
|---|---|
| Currently Insured | 67% |
| Not Currently Insured | 33% |
Zebra Tip: Consider uninsured property damage coverage
In cities or ZIP codes with high rates of uninsured drivers, we recommend carrying uninsured motorist coverage (also called UMPD). This coverage will provide assistance to you if you or your vehicle are damaged by an underinsured or uninsured driver. This coverage typically has a lower deductible and is cheaper than collision. Plus, the rate increase after a UMPD claim can be hundreds of dollars cheaper than a collision claim.
Bundling insurance policies in Laredo
One of the most effective ways to save on car insurance is by bundling another insurance policy under the same provider. Nearly every company offers a multi-policy discount, saving policyholders up to 10% on combined premiums. The most common bundling combination is auto insurance and renters or homeowners. Learn more about bundling home and car insurance.
Cheapest car insurance companies for bundling home and auto insurance in Laredo, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| Germania Mutual Group | $593 |
| GEICO | $721 |
| State Farm | $755 |
| Redpoint County Mutual | $813 |
| USAA | $853 |
| Nationwide | $893 |
| Allstate | $1,172 |
While some things may be out of your control, drivers can work to make their profiles more appealing to insurers. The best advice we offer is to shop around and compare auto insurance quotes with as many companies as possible to ensure you're getting the most affordable rate that doesn't compromise coverage and service — especially if any personal factors have changed (like moving, celebrating a birthday and improving your credit). Try as you might, some companies are just more expensive than others; don't be afraid to switch.
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Frequently asked questions
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.