Wouldn’t it be so easy if we knew the single best car insurance company that has the cheapest rates for infrequent drivers? It’s just not that easy, however, as there are a whole bunch of unknowns such as if you have maintained coverage continuously, your credit rating, how much you actually drive in a year, and the safety features built into your vehicle, that all impact the price you pay. We will touch on these factors and others that can influence the price of auto insurance and will hopefully give the reader a good start in finding the cheapest insurance.
Deciding which insurers offer the most affordable car insurance rates for infrequent drivers will involve a tad more effort than just getting one or two price quotes.
Every car insurance company uses their own method for establishing rates, so let’s examine the most competitive car insurance companies in Florida. It’s important to understand that Florida car insurance rates are influenced by many factors that will increase or decrease the cost of a policy. Getting older, buying a different home, or getting caught speeding may generate price changes resulting in some companies being cheaper in comparison to the competition.
Best Insurance Companies in Florida
USAA generally has some of the cheapest car insurance rates in Tampa at around $977 each year. This is $1,471 less than the average policy premium paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Mercury also qualify as some of the cheaper Tampa, FL car insurance companies.
As shown in the rates above, if you are currently insured with Amica and switched to USAA, you might achieve yearly savings of approximately $717. Policyholders with Progressive may save as much as $816 a year, and Mercury policyholders might cut rates by $937 a year.
To see if your current coverage is too expensive, click here to start your free quote or click several companies below for low rates.
Be aware that those prices are averaged across all insureds and vehicles and are not factoring in a vehicle location for infrequent drivers. So the auto insurance company that fits your situation best may not even be in the list above. That emphasizes why you need to compare rates from as many companies as possible using your own driver information and specific vehicle type.
One of the more important components that help determine the cost of insurance is where your residence is in Tampa. Regions with larger populations or more claims tend to have higher auto insurance costs, whereas areas with lower crime rates and fewer weather claims have the luxury of lower rates.
The illustration below sorts the priciest cities in Florida for infrequent drivers to purchase car insurance in. Tampa makes the list at #11 with an annual rate of $2,532 for coverage, which is approximately $211 monthly.
|Rank||City||Premium Per Year|
|5||West Palm Beach||$2,625|
|19||Port St. Lucie||$1,975|
|Quote Best Rates Go|
Table data uses estimated as the specific zip code location can change price quotes substantially.
Full coverage rates compared to liability-only
Buying cheaper car insurance is the goal of most vehicle owners, and a good way to find cheaper insurance for infrequent drivers is to buy only liability coverage. The chart below illustrates the difference between car insurance costs with full coverage compared to only the Florida minimum liability coverage. The costs are based on no violations or accidents, $100 deductibles, drivers are not married, and no discounts are taken into consideration.
As an average, physical damage insurance costs an additional $3,196 per year more than just insuring for liability. Many drivers will wonder if it’s worth it to buy full coverage. There is no definitive formula of when to drop full coverage, but there is a general guideline. If the yearly cost for physical damage coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you might want to consider buying only liability coverage.
For example, let’s say your vehicle’s settlement value is $11,500 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $10,500 after you pay the deductible. If it’s costing in excess of $1,050 a year for your policy with full coverage, then you may need to consider dropping full coverage.
There are a few cases where buying only liability insurance is not in your best interest. If you still owe a portion of the original loan, you are required to maintain full coverage as part of the loan conditions. Also, if you cannot afford to purchase a different vehicle in the event your current vehicle is totaled, you should not eliminate full coverage.
The diagram below demonstrates how deductible levels can raise or lower annual premium costs when trying to find cheap insurance for infrequent drivers. The data assumes a married male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
In the chart above, a 40-year-old driver could cut expenses by $394 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $590 by switching to a $1,000 deductible. Youthful drivers, such as the Age 20 example, could reduce their rates as much as $1,320 each year by choosing a higher deductible. If you do make the decision to raise your deductibles, it is essential to have additional funds in a savings account to be able to pay the extra out-of-pocket expense. This is the primary disadvantage of choosing high deductibles.
Violations and accidents raise rates
The ideal way to snag good car insurance rates in Tampa for low mileage drivers is to be a careful driver and have a clean driving record. The diagram below shows how speeding tickets and at-fault collisions raise insurance prices for different categories of driver ages. The data is based on a single male driver, comp and collision included, $500 deductibles, and no discounts are taken into consideration.
In the prior example, the average cost of a car insurance policy per year with no accidents or violations is $2,619. Factor in two speeding tickets and the average cost swells to $3,461, an increase of $842 each year. Now include two accidents along with the two speeding tickets and the yearly cost of car insurance for infrequent drivers goes up to an average of $6,784. That’s an increase of $4,165, or $347 per month, just for being a careless driver!
Comparing rates can save you money
Tampa car insurance rates are determined by lots of factors that may substantially change the price of coverage. Getting older, buying a new vehicle, or getting into an accident may prompt premium changes that can cause some rates to be affordable when they were higher priced.
In addition, insurance companies file new rates without warning in order to remain profitable. Higher than normal claims may result in price increases, while profitable underwriting may produce lower-cost Tampa car insurance rates.
As an example, the chart below shows a variety of companies that have the cheapest car insurance in Tampa, FL for a 35-year-old female driver with no prior claims, no tickets, and good credit. If we estimate rates based on her current situation, USAA may offer the most affordable car insurance rates in Tampa at $1,533 annually. This is $915 less than the average rate paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Travelers also make the list of the cheapest Tampa, FL auto insurance companies.
The chart below compares rates after we give the driver from the above example a claim surcharge, slightly worse credit, and a traffic ticket or two. Due to the fact that each insurance company has a proprietary formula to set premium rates, analyzing rate quotes could now result in a significantly different list of affordable companies as shown below.
USAA now has the best insurance rate in Tampa with Allied, Esurance, State Farm, and Auto-Owners now being in the top five. This example illustrates why Florida drivers need to take the time to shop around when trying to get the most economical car insurance rates for infrequent drivers.
Car insurance prices are calculated by many factors and change frequently, so the lowest-price company the last time you checked may now cost much more than other companies.