The words "low-cost" and "insurance" really shouldn't be used together, especially when you are searching for the lowest insurance prices for drivers under 25. In an attempt to save some money, let's familiarize you with some of the things that have a considerable impact on auto insurance rates, and figure out some ideas to slash the price of your next policy.
For drivers age 25 and younger, one of the big components that are looked at to help calculate the amount you pay each year for auto insurance is where you normally keep your vehicle. Cities with larger populations like Hialeah, Miami, and West Palm Beach tend to have more expensive car insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates have the benefit of cheaper auto insurance prices.
The illustration below sorts the most expensive cities in Florida for drivers under 25 to buy auto insurance in.
|5||West Palm Beach||$2,625|
|20||Port St. Lucie||$1,935|
|Compare Rates Now Go|
Rate quotes are estimated as the specific area where the vehicle is garaged can decrease or increase prices significantly.
Locating cheap car insurance is not the easiest thing to accomplish, and determining which companies quote the most affordable car insurance rates for drivers under 25 in Florida will involve even more perseverance. Coverage rates should be moderately pricier than the average policy in Florida due to the extra risk related to selling coverage for drivers age 25 and younger, but competitive coverage should be available if you shop around. Every car insurance company has a proprietary formula to set premium rates, so let's take a look at the most budget-friendly car insurance companies in Florida.
It's important that readers know that Florida car insurance rates are based on many factors which can substantially change the cost of a policy. This price variation is why it is important to compare many different companies to find the most budget-friendly insurance rates for drivers under 25. Insurance rates are made up of many different factors and change frequently, so the cheapest rate three years ago may now be quite expensive.
Best Car Insurance Prices for Young Drivers
|Rank||Company||Cost Per Year|
|View More Rates Go|
USAA normally has some of the most affordable car insurance rates in Florida at around $977 per year. Electric, Amica, Progressive, and Travelers also qualify as some of the cheaper Florida insurance companies.
As shown above, if you are a policyholder with Progressive and switched to USAA, you might see a yearly price reduction of roughly $870. Drivers with Travelers might save as much as $892 a year, and Mercury insureds might cut rates by $1,015 a year.
Understand that those estimates are averages for all types of drivers and the different vehicles they drive and and are not figured with a price increase for drivers under 25. So the auto insurance company that can offer you the best price may not even be in the list above. That is why you need to compare rates from multiple companies using your own specific driver information and vehicle.
Does it make sense to buy full coverage?
Saving money on car insurance should be important to the majority of vehicle owners, and one of the quickest ways to pay less for insurance for drivers under 25 in Florida is to only buy liability insurance. The information below compares insurance costs with and without full coverage. The price estimates are based on no tickets, no at-fault accidents, $1,000 deductibles, drivers are not married, and no other discounts are factored in.
If all age groups are averaged, physical damage coverage on your policy costs an additional $1,747 per year more than just buying liability insurance. Many people question when is it safe to stop buying full coverage. There is no specific rule of when to eliminate full coverage, but there is a general convention. If the annual cost of coverage is 10% or more of the vehicle's replacement cost less your deductible, then it could be time to drop full coverage.
For example, let's say your vehicle's replacement value is $3,000 and you have $1,000 policy deductibles. If your vehicle is totaled, the most your company will settle for is $2,000 after the policy deductible has been paid. If it's costing in excess of $200 annually for your policy with full coverage, then you might want to think about dropping full coverage.
There are a few cases where buying only liability insurance is not financially feasible. If you haven't paid off your loan, you have to carry full coverage in order to prevent your loan from defaulting. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should keep full coverage on your policy.
The chart below highlights how deductible selection can influence insurance prices when researching cheap insurance for drivers under 25 in Florida. The premium estimates are based on a married female driver, comp and collision included, and no policy discounts are applied.
As shown above, a 40-year-old driver could lower rates by $384 a year by switching from a $100 deductible up to a $500 deductible, or save $578 by choosing a $1,000 deductible. Young drivers, such as the Age 20 example, have the ability to save up to $952 every year just by choosing higher deductibles when buying full coverage. When using a larger deductible, it is necessary to have additional funds in a savings account to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Ratings for Florida car insurance companies
Selecting a good quality auto insurance provider is hard considering how many choices there are in Florida. The information displayed below can help you choose which car insurance companies to look at comparing rate quotes with. These rankings are for large nationwide companies, so companies without a large exposure will not be included in the list.
Top 10 Large Auto Insurance Companies in Florida Ranked by A.M. Best Rating
- Travelers - A++
- USAA - A++
- GEICO - A++
- State Farm - A++
- Titan Insurance - A+
- Esurance - A+
- Progressive - A+
- The Hartford - A+
- Allstate - A+
- Nationwide - A+
Top 10 Large Auto Insurance Companies in Florida Ranked by Customer Satisfaction
- USAA - 91%
- AAA Insurance - 90%
- Esurance - 90%
- Mercury Insurance - 89%
- Nationwide - 89%
- Travelers - 88%
- Progressive - 88%
- Safeco Insurance - 88%
- State Farm - 88%
- Allstate - 88%
How to find cheaper insurance for drivers under 25 in Florida
Lowering your rates is not difficult, and here are many penny-pinching ideas that can help Florida drivers buy more affordable coverage.
- Being accident-free can lower rates significantly
- Improve your credit rating
- Multi-policy discounts save money
- Buy safe vehicles
- Full coverage is expensive so only insure older vehicles for liability only
- Compare rate quotes frequently
That last tip is extraordinarily valuable, as was noted in the article above. Auto insurance rates adjust often, so you should be ready to switch companies if a more affordable rate is found. Being loyal to a particular company is commendable, but it's not a great idea if that faithfulness ends up costing you a lot of money. In just a few minutes you could compare prices to find cheaper auto insurance for drivers under 25.