Auto Insurance Basics

Best Auto Insurance Rates in Laredo, TX

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For those who know it well, Laredo is named the “Gateway City” for being the main port of entry into Mexico. Its development since 1755 is a true testimony to the railway boom as well as city planning; these two defining events contributed to its urbanization. The arrival of the railway system in 1881 connected the city with its Mexican counterpart Nuevo Laredo across the Rio Grande. Today, four international bridge crossings, from the Gateway to the Americas to the Laredo - Colombia Solidarity Bridge, help to cement international commerce and mobility. For the 236,000 people living and working in Laredo, the continuous construction and enhancements of connectors and roadways ensure convenience for Laredo's many residents in their commute.

As residents may be aware, Laredo placed among the top 30% most expensive cities for auto insurance in Texas. Nonetheless, for the 236,00 people living and working in Laredo, we found ways to cut as much as 39% from annual rates by comparing quotes and choosing the right insurer. We looked at car insurance quotes in Laredo for our sample driver, who was a 28-year-old married man in a Toyota Camry across various neighborhoods in the city. We found his average quote to be $596 a year for a basic coverage plan. Rates didn't change much based on where he lived in Laredo; what really mattered was his choice of insurer. For example, insuring with the company with the best rates meant a 62% savings compared to the city average, but a policy with the most expensive provider made his costs nearly 2x the city’s average rates. This premium difference between the most expensive and cheapest auto insurance companies came to more than $1,330 a year, which is why it's always important for drivers to compare at least three quotes to get better rates.

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Cheapest Auto Insurance Companies in Laredo, TX 

Which were the cheapest insurance companies in Laredo? While the average Laredo rates were about $596 a year for our sample 28-year old guy, the insurance companies quoted annual premiums anywhere between $228 and $1,104. We found at least 5 insurers who would cover our sample driver for close to $361 – a 39% lower-than-average price – a year. Here are the 17 insurers in Laredo we surveyed for our married and accident-free 28-year old driver, ranked from the best rates for car insurance to the highest.

RankCompanyAverage Annual RatesChange vs. City Average
1 GEICO $228 -62%
2 Allstate 341 -43%
3 Texas Farm Bureau* 372 -38%
4 Mercury 420 -30%
5 Safeco 444 -26%
6 State Farm 456 -23%
7 Empower 466 -22%
8 California Casualty 468 -21%
9 Affirmative 557 -7%
10 CAIC 564 -5%
11 AmWINS 672 13%
12 Infinity 718 20%
13 21st Century 744 25%
14 Unitrin 756 27%
15 The General 845 42%
16 Kemper Specialty 979 64%
17 Multi-State 1,104 85%

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*Note: Texas Farm Bureau is a membership-based organization that offers its participants financial services and products. In order to be a member of the Texas Farm Bureau and be eligible for their auto insurance, Laredo residents must submit dues of $47 a year.

Your actual quotes will differ widely based how long you've been driving accident-free for, how much liability coverage you choose, and the make and model of your vehicle, among other factors. In any event, to make sure you get the best rates, always compare car insurance quotes from at least three providers - the more the better if you have the time available. For our sample driver, we compared 17 car insurance companies, and his five cheapest auto insurance providers were GEICO, Allstate, Texas Farm Bureau*, Mercury, and Safeco. More importantly, these five cheapest insurers were not just the cheapest by average, but also consistently the cheapest in all neighborhoods. Let's begin with the lowest average rates quoted for our sample motorist.

GEICO

The cheapest auto insurance company we found by far in Laredo was GEICO, which consistently quoted car insurance rates that were 62% lower than what the typical carrier charged, regardless of which neighborhood our driver lived in. Instead of the city average $596 a year, our driver found insurance plans for basic coverage for about $228 a year from this insurer. Put another way, GEICO's costs were about one-fifth the cost of our most expensive insurer's. Originally providing exclusive services to governmental employees and military personnel, GEICO now not only offers nationwide service, but also has one of the most extensive lists of available auto insurance discounts. 

Allstate

Allstate ranked with the second best car insurance rates in Laredo, as they were commonly 43% lower than most insurers'. Our driver was saving 43% when he elected to place his car in Allstate's hands - that's paying $255 less compared to the Laredo average for our benchmark driver. Allstate had the most variation when it came to where our sample driver lived in Laredo. The highest quote for our sample driver based on neighborhood was $372 in Rio Bravo, and the lowest at $300 in the Hillside area.

Texas Farm Bureau

The third most affordable auto insurance company in Laredo for our driver was Texas Farm Bureau, which protected his Toyota Camry for basic coverage at a cost of $372 a year. This rate was 38% lower than most other quotes he received. Similarly, Texas Farm Bureau's quotes were consistent throughout the various Laredo neighborhoods we looked at. The one piece of information to note about the Texas Farm Bureau is that you have to be a member in order to be eligible for its auto insurance and various other services. For Laredo residents, it costs $47 a year for membership dues with the Texas Farm Bureau.

Mercury 

Our sample driver’s quotes were around $420 a year for basic car insurance at Mercury Insurance Company. Compared to our subset of insurers, Mercury placed with the fourth lowest rates for insuring a vehicle in Laredo. Their rates were often 30% cheaper than others in any one region of the city. 

Safeco 

Last but not least, Safeco took the spot as our fifth cheapest insurer for auto insurance in Laredo. Average premiums were $444 a year, or 26% lower against the city’s mean. It was one of several insurers who gave our driver a flat rate in Laredo, so its rates were consistently low across the various neighborhoods in the city. 

Most Expensive Auto Insurance Companies in Laredo

On the pricey end, our motorist generally found his highest quotes from our 5 most expensive insurers. Among these insurers, the average annual premiums were around $886, which was 49% higher than the Laredo average price. In other words, one year of premium from our most expensive insurer was enough to pay two years' worth of most basic vehicle liability protection from other companies. Beginning with the highest average rates quoted for our sample motorist:

Multi-State was our most expensive insurer, who quoted our driver for an average $1,104 a year. This rate was 85% higher against our city’s mean, and Multi-State quoted the whole city with this flat rate. It was by far the most expensive insurer in every neighborhood in Laredo. Headquartered in Texas, Kemper Specialty’s rates were much lower than Multi-State’s, but still 64% more expensive than the city’s average quotes. Our motorist’s policy with this insurer was usually around $979, although it got as high as $1,008 in the Hillside neighborhood. The third most expensive insurer, The General offered $845 annual rates on average for basic auto insurance coverage. Throughout Laredo, this rate was 42% higher than most quotes our driver received. The price we found with this insurer varied little across different neighborhoods. One of the subsidiaries of the Kemper Corporation, Unitrin typically quoted rates around $756 for our Laredo driver. For a year’s policy premium, this rate was 27% higher against the city’s mean. This insurer’s rates also varied little across the city proper. Owned by the Farmers Insurance Group of Companies, 21st Century was also one of our 5 most expensive Laredo insurers. Our motorist found a flat rate of $744 from 21st Century across the city. This rate made this insurer 25% more expensive than the city’s average quote. 

Cost of Car Insurance: by Neighborhood

Compared to other cities, Laredo’s average auto insurance rates varied very little across its total 89 square miles of area. Overall, for our Laredo driver, every neighborhood’s average cost of auto insurance was quite close to the city’s $596 average. The rates found in the northern regions were slightly higher than those found in the southern regions. Nevertheless, our driver also found that regardless of the neighborhood, his single quotes could differ by as much as $876 a year based on the insurance company he was quoted by. This illustrated why we felt it is important for every consumer to compare at least 3 insurers before signing up for a policy. In order of average rates low to high:

Larga Vista

The average rates were $594 for a year of basic auto insurance coverage in the southwestern region of Laredo, including all that belonged to the 78043 zip code zone. Neighborhoods in this area included Larga Vista. 

Rio Bravo

Our sample married male driver living in Rio Bravo saw average annual rates of about $595 a year across the various insurers. This included neighborhoods along Highway 395 to as far south as Rio Bravo.

San Augustine Historical District

The city now known as Laredo started in the San Augustine Historical District, when it was first established as a Spanish colonial settlement. In neighborhoods around this region, particularly ones within the zip code 78040 including downtown, Fort McIntosh, Old Mercado, and St. Pete’s Historical District, our driver received quotes averaging exactly the same as the city’s $596 mean. 

Hillside 

Directly north of downtown Laredo, where neighborhoods such as Hillside and Chapparral Village made up the zip code zone of 78041, the average premiums were $597 a year. This region is the closest to the Laredo International Airport. 

Del Mar 

Finally, in Del Mar, Nye, and all other neighborhoods in the northernmost part of the city with zip code 78045, our sample driver's average auto insurance quotes were $598 a year.

Cheapest Car Insurance in Laredo: by Neighborhood

The cheapest insurers in each of the neighborhoods mirror the overall citywide ranking. We present that information in alphabetical order, along with the sample best rates that our married 28-year old man saw. Keep in mind that we assumed he had several years of excellent driving - no accidents or traffic violations - and the annual costs below reflect this. A few interesting things to note: the cheapest and 3rd cheapest providers did not distinguish between neighborhoods for our sample driver, while there was some variation among the neighborhoods for the insurer with the second best rates.

Insurer #1Insurer #2Insurer #3
Audubon Park, Duck Creek, Rose Hill GEICO $228 Allstate $336 Texas Farm Bureau* $372
Downtown Garland, Buckingham North GEICO 228 Allstate 360 Texas Farm Bureau* 372
Firewheel, Holdford GEICO 228 Allstate 372 Texas Farm Bureau* 372
Orchard Hills GEICO 228 Allstate 300 Texas Farm Bureau* 372
West Garland, Walnut Creek GEICO 228 Allstate 336 Texas Farm Bureau* 372

Auto Insurance Agencies in Laredo

For consumers who prefer to speak with an auto insurance agent, we have located a couple of the larger local agencies for your reference. However, one should note that most of the general agencies lack a full picture of the insurance companies available to consumers in Laredo. That's because some insurers do not allow independent agents to represent them. Such companies included our top three cheapest Laredo insurers. Their local agents’ contact information is also listed below. 

  • Laredo Insurance Agency – Safeco, Progressive, The Hartford, Kemper Specialty, Travelers, and etc.: 5711 McPherson, Suite 202, Laredo, TX 78041, (956) 729-0799
  • Peña Insurance Agency – Safeco, Mercury, Kemper Specialty, Travelers, Foremost, and etc.: 220 W. Hillside Rd. Lot 11, Laredo, TX  78041-6903, (956) 724-9004
  • IBC Insurance Agency – Travelers, The Hartford, Allstate, Progressive, and etc.: 5800 San Dario Ave - 2nd Floor, Laredo, TX 78041, (956) 722-6500
  • Allstate: Allstate has several agents in Laredo, and we have randomly presented one here: Marcus Moreno, 1705 E Del Mar Blvd Ste 105a, Laredo, TX, 78041, (956) 725-4934. Click here to search for agents.
  • GEICO: there are no GEICO agents located in Laredo. The closest one is located in San Antonio, less than two miles away: Rod Musslewhite, 8806 Bandera Raod, Suite 104, San Antonio, TX 78250, (210) 673-2391.
  • Texas Farm Bureau: As mentioned, you'll have to be a member to buy auto insurance from Texas Farm Bureau ($47 annual dues): Juancario Rendon, 1303 Calle Del Norte Suite 200, Laredo, TX 78041, (956) 712-3276

Car Insurance Discounts in Laredo

One easy way to cut spending on auto insurance costs is to ask your agent or representative for a discount. The truth is, many insurance companies all honor general discount categories to a certain degree. Examples of such include Good Student discounts for students who've maintained at least a B average, Defensive Driver discounts for drivers with defensive driving lesson record, or Mature Driver discounts for those 55 years old and above. We have seen many an insurance company honoring these discounts for anywhere between 5% - 25% savings on premiums.

Some unique Laredo discounts are offered by GEICO through its list of membership and employee discounts. We have found that, at the least, if you are a student at the University of Texas San Antonio, or affiliated with the Texas Chapter of the International Association of Workforce Professionals, or lawyers within the association of the State Bar of Texas, you should be eligible for a GEICO discount. Other discounts may apply to your other memberships, so check out the list in case you miss out on saving opportunities.

Driving Schools offering road or online courses in Laredo:

Texas State Minimum Financial Responsibilities

The Texas Department of Insurance only specified financial responsibilities for Property Damage and Bodily Damage for both the automobile driver and uninsured motorists, but the penalties for violators are high. The basic coverage we used in our study fully accounted for the Texas state minimum requirements; additionally, it also included Personal Injury Protection, Comprehensive, Collision, as well as towing coverage. We felt this package was a more well-rounded basic coverage for drivers, but the most appropriate coverage will always depend on your personal situation and budget. One should consider the value of their total assets when making this decision. Refer to our Auto Insurance Basics articles for more information. 

Texas Required Minimum LimitsOur Study Limits
Personal Injury Protection (PIP) Not Specified $10,000
Property Damage 25,000 25,000
Bodily Injury (BI) 30,000 per person/60,000 per accident 50,000 per accident/100,000 per accident
Uninsured Motorist BI Not Specified 50,000 per accident/100,000 per accident
Uninsured Motorist Property Damage Not Specified 25,000
Comprehensive / Collision Deductible Not Specified 500

Penalties for not complying with the minimum requirements in TX: 

  • First offense: fine of $175 to $350
  • Additional offenses: fine of $350 to $1,000, suspension of your driver's license, and impoundment of your car
  • Offense without a driver's license: $2,000 maximum fine, 180 days in jail, or both
  • Offense if you cause an accident with serious injuries or death: $4,000 maximum fine, one year in jail, or both

Methodology

We looked at Laredo's demographics as recorded in the US Census, and selected a 28-year old married male as a representative driver in our quote comparison. He has a good credit score, with clean driving records tracing up to 5 years back. He owns the 2010 Toyota Camry that he was insuring for, and he is on the road for about 12,000 miles driving to work every year. The study is based on the premium data collected for this profiled driver. The five zip code zones are the five standard USPS zip codes attached to Laredo. We looked into a total of 17 auto insurance providers, which all provided coverage for the Laredo region.

Sources:
History of Laredo
Laredo City Data
Texas State Minimum Auto Insurance Liability

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