For youthful drivers, one of the big considerations that determine the amount you pay for auto insurance is where you choose to live. Areas with a lot of weather claims or more people tend to have more expensive auto insurance rates, whereas areas with less people or fewer weather incidents have the gratification of cheaper auto insurance rates.
The next table rates the priciest cities in Florida for young drivers in which to buy car insurance. Tampa is ranked #9 with an annual rate of $2,532 for the average policy, which is around $211 per month.
|7||West Palm Beach||$2,625|
|20||Port St. Lucie||$1,935|
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Price information shown is comparative as the specific area where the vehicle is garaged can change price quotes substantially.
The vehicle model requiring insurance is one of the biggest factors when comparison shopping for cheap insurance for young drivers. Vehicles with limited top-end speed, good safety features, or a low likelihood of having liability claims will cost much less to insure than adrenaline junky models. The table below outlines coverage prices for the most budget-friendly automobiles to insure in Florida.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$9,121|
|Ford Escape XLT 2WD||$9,128|
|Hyundai Elantra GLS Touring Station Wagon||$9,121|
|Honda CR-V EX 4WD||$9,208|
|Ford F-150 XL Regular Cab 2WD||$9,613|
|Volkswagen Jetta S 2.5 Station Wagon||$9,765|
|Honda Odyssey LX||$10,172|
|Jeep Wrangler Sahara 4WD 2-Dr||$10,259|
|Ford Explorer XLT 2WD||$10,266|
|Chevrolet Impala LS||$10,728|
|Ford Focus S 4-Dr Sedan||$10,738|
|Toyota RAV4 2WD||$10,816|
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Above prices assume single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Florida minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in garaging location in Tampa, FL which can affect rates significantly.
Looking at the rates, we can expect cars like the Honda Accord, Ford Escape, Hyundai Elantra, Honda CR-V, and Ford F-150 are likely to be a few of the cheapest vehicles to insure for youthful drivers. Car insurance rates will tend to be higher because there is more claim exposure for young drivers, but in general those particular models will have the least expensive rates possible.
Poor driving habits will raise your auto insurance rates
A great way to receive good auto insurance rates in Florida for youthful drivers is to drive attentively and avoid accidents and traffic violations. The example below illustrates how speeding tickets and at-fault claims can drive up insurance rates for each different age group. The price estimates are based on a single female driver, full physical damage coverage, $500 deductibles, and no policy discounts are applied.
In the example above, the average cost of a car insurance policy in Florida per year with no accidents and a clean driving record is $2,492. Get written up for one speeding ticket and the average cost hikes up to $2,827, an increase of $335 each year. Now get one accident along with the one speeding ticket and the annual cost of auto insurance for young drivers increases to an average of $3,770. That’s an increase of $1,278, or $107 per month, just for not driving attentively!
Should you buy full coverage?
Saving on auto insurance is important to the majority of people, and one of the quickest ways to save on the cost of insurance for young drivers is to buy only liability coverage. The example below illustrates the comparison of premium costs when comparing full coverage to liability only. The information is based on no claims or driving citations, $500 deductibles, single marital status, and no additional discounts are factored in.
If averaged out across all ages, physical damage coverage on your policy costs $2,619 per year more than insuring for liability only. That amount may make you wonder if physical damage coverage is worth the money. There is no clear-cut rule of when to phase out physical damage coverage, but there is a general school of thought. If the yearly cost for physical damage coverage is more than 10% of the replacement cost minus the deductible, then you might want to consider buying only liability coverage.
For example, let’s say your vehicle’s book value is $6,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, you would only receive $5,000 after paying your policy deductible. If premiums are more than $500 a year to have full coverage, then you may want to consider only buying liability coverage.
There are some circumstances where dropping full coverage is not advised. If you haven’t paid off your loan, you must maintain physical damage coverage to protect the lienholder’s interest. Also, if you don’t have enough money to buy a different vehicle if your current one is in an accident, you should maintain full coverage.
The benefits of price comparisons
Tampa, FL auto insurance rates are determined by lots of factors that can increase the cost of a policy. Simply turning a year older, moving to a new city, or getting a speeding ticket may prompt premium changes resulting in some companies being cheaper in comparison to the competition.
Not only may your risk profile change, but auto insurance companies modify rates as often as every quarter to reflect underwriting profits or losses. A period of higher than normal claims may cause a rate increase, while a profitable period may produce lower-cost Tampa car insurance rates.
As an example, the graph below shows which companies have the cheapest car insurance in Tampa, FL for a 35-year-old female driver with no accidents, a clean driving record, and a high credit rating. When comparing rates based on her current risk factors, USAA might quote the cheapest car insurance rates in Tampa at $1,595 per year. This is $853 less than the average rate paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Travelers are the remaining cheapest Tampa, FL auto insurance companies.
Let’s now give the driver from the first set of rates a chargeable claim, slightly worse credit, and a speeding citation. Due to the fact that every auto insurer has a unique formula to establish rates, getting updated rate quotes may result in a different list of companies as shown below.
USAA now has the lowest price in Tampa, FL with Allied, Esurance, State Farm, and Auto-Owners now rounding out the top five. This example shows why it is critical to shop around to find the most budget-friendly car insurance quotes for young drivers. Prices can be determined by many different factors and change dramatically, so the most affordable company the last time you compared rates may now be priced much higher than other options.