The words “low-cost” and “insurance” really don’t belong together, specifically when trying to find the cheapest coverage for 16 year olds. Because of the high cost, let’s take a look at some situations that influence car insurance rates, and find a way to lower the price of your next policy.
Finding out which company quotes the cheapest insurance rates for 16 year olds involves a bit more work in order to find coverage that fits your budget. Each auto insurer has a proprietary method for determining prices, so let’s rank the insurance companies with the overall cheapest rates in Tampa, FL.
Find Cheaper Car Insurance for Teens
|Rank||Company||Cost Per Year|
|Find Your Rate Go|
USAA offers some of the best car insurance rates in Tampa at around $948 per year. This is $1,500 less than the average rate paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Travelers also make the cut as some of the best Tampa, FL auto insurance companies.
As shown above, if you are a customer of Travelers and switched to Electric, you might realize a yearly price reduction of around $232. Insureds with Mercury might save as much as $279 a year, and Allied policyholders might lower prices by $310 a year.
If you want to find out if you’re overpaying, click here or click several companies below for low rates.
Remember that these policy prices are averaged across all insureds and vehicles and and are not figured with a specific zip code for 16 year olds. So the insurer that is best suited for you may not even be in the list above. That points out the importance of why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
One of the more important considerations that are looked at to help calculate the cost of insurance is where you live. More populated areas tend to have more expensive car insurance rates, whereas less populated areas have the enjoyment of a little cheaper coverage.
The information below shows the priciest cities in Florida for 16 year olds to buy car insurance in. Tampa is ranked #5 with an annual premium of $2,636 for car insurance, which is around $220 each month.
|Rank||City||Premium Per Year|
|8||West Palm Beach||$2,599|
|20||Port St. Lucie||$1,935|
|Start a Quote Go|
Table data uses comparative as zip code location can affect coverage prices considerably.
How to get discounts on Tampa auto insurance rates
Insurance companies that offer quotes for 16 year olds may provide special discounts that can lower rates by 35% or more if you can meet the requirements. A few of the larger companies and some of the premium reductions they offer are:
- GEICO may include discounts for good student, five-year accident-free, anti-lock brakes, multi-vehicle, driver training, and emergency military deployment.
- USAA policyholders can earn discounts including loyalty savings, multi-vehicle, new vehicle, safe driver, and good student.
- Progressive discounts include good student, online signing, continuous coverage, multi-policy, and multi-vehicle.
- American Family may have discounts that include TimeAway discount, good driver, defensive driver, accident-free, and Steer into Savings.
- Esurance has savings for paid-in-full, good student, anti-theft, homeowner, good driver, and multi-car.
- Farmers Insurance may offer discounts for business and professional, mature driver, alternative fuel, early shopping, and youthful driver.
- State Farm offers discounts including multiple policy, good student, accident-free, defensive driving training, passive restraint, student away at school, and good driver.
The diagram below shows the comparison of premium costs with and without discounts applied to the policy premium. The premiums are based on a female driver, no claims or violations, Florida state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with passive restraint, paid-in-full, paperless filing, continuous coverage, good student, and vehicle safety discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on insurance for 16 year olds is 28% or $606.
The illustration below demonstrates how deductible levels can increase or decrease insurance costs when researching cheap insurance for 16 year olds. The premium estimates are based on a married female driver, comprehensive and collision coverage, and no discounts are applied.
The chart above illustrates that a 50-year-old driver could cut expenses by $384 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $578 by choosing a $1,000 deductible. Youthful drivers, such as the 20-year-old example, could roll back prices $952 or even more by choosing a larger deductible amount. When increasing deductibles, it will be important to have enough funds in savings to enable you to pay the extra out-of-pocket expense associated with higher deductibles.
Full coverage rates vs. liability-only in Tampa
Paying less for insurance is probably important to the majority of drivers, and one of the best ways to find cheaper insurance for 16 year olds is to not insure for full coverage. The diagram below shows the difference between car insurance costs with full physical damage coverage and with liability coverage only. The premiums assume no claims, a clean driving record, $1,000 deductibles, marital status is single, and no discounts are applied.
If averaged out across all ages, physical damage coverage costs $2,362 per year more than just buying liability insurance. Many drivers may wonder if it’s a good idea to buy full coverage. There is no written rule for phasing out physical damage insurance, but there is a broad guideline. If the annual cost of coverage is 10% or more of the settlement you would receive from your company, then it might be time to consider dropping full coverage.
For example, let’s pretend your vehicle’s replacement value is $4,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, you would only receive $3,000 after paying the physical damage deductible. If you are paying in excess of $300 annually for full coverage, then you might want to think about dropping full coverage.
If you would rather get some professional advice when trying to find the best insurance rates for new drivers, the agents below are willing to provide answers to your questions and help you determine which car insurance policy is best.
To find an agent close to you, click the button following the list or click here to get price quotes now.
Global FIS – A Full Service Independant Insurance Agency
8710 W Hillsborough Ave #201 – Tampa, FL 33615 – (813) 343-0844
GreatFlorida Insurance – Bill Sullivan
10353 Cross Creek Blvd Suite C – Tampa, FL 33647 – (813) 994-1143
State Farm: Jeff Ralph
11014 N Dale Mabry Hwy #501 – Tampa, FL 33618 – (813) 969-3331
Hockman Insurance Agency, Inc.
3438 Colwell Ave – Tampa, FL 33614 – (813) 636-4000