You have surely seen all the captivating commercials from auto insurance companies like The General and Nationwide that make promises of dirt cheap rates. So you just need to choose the one with the best commercial, right?
It’s just not that simple, as there are a whole slew of unknown aspects such as if you just need liability coverage, if you are currently insured, and if you have a spouse, that all influence how much you pay for auto insurance. Car insurance is kind of a dry topic, but this article will explain the best ways to save on auto insurance and will hopefully give you a good start in finding the cheapest car insurance.
One of the more important criteria that are looked at to determine auto insurance rates is your address. Cities with larger populations or higher claim trends are more likely to pay higher prices, whereas areas with fewer weather claims and lower vehicle theft rates get the luxury of paying less.
The information below rates the most expensive areas in Florida for 18 year olds to purchase auto insurance in. Orlando shows up at #17 with an annual rate of $2,090 for the average policyholder, which is around $174 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Hialeah | $3,595 |
| 2 | Miami Gardens | $3,245 |
| 3 | Miami | $3,177 |
| 4 | Miami Beach | $2,953 |
| 5 | Miramar | $2,709 |
| 6 | Tampa | $2,636 |
| 7 | Hollywood | $2,604 |
| 8 | West Palm Beach | $2,599 |
| 9 | Pompano Beach | $2,595 |
| 10 | Fort Lauderdale | $2,576 |
| 11 | Pembroke Pines | $2,505 |
| 12 | Coral Springs | $2,499 |
| 13 | Davie | $2,473 |
| 14 | Brandon | $2,298 |
| 15 | Clearwater | $2,238 |
| 16 | St. Petersburg | $2,219 |
| 17 | Orlando | $2,090 |
| 18 | Spring Hill | $2,039 |
| 19 | Jacksonville | $2,020 |
| 20 | Port St. Lucie | $1,935 |
| 21 | Cape Coral | $1,860 |
| 22 | Lakeland | $1,827 |
| 23 | Tallahassee | $1,784 |
| 24 | Palm Bay | $1,750 |
| 25 | Gainesville | $1,696 |
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Rates are estimated as the specific garaging location can impact price quotes significantly.
The vehicle model that needs insurance is probably the most important factor that determines if you can find economical insurance for 18 year olds. Vehicles with more horsepower, poor safety features, or high incidents of liability claims will cost substantially more to insure than more modest models. The table below illustrates insurance prices for the most economical automobiles to insure in Florida.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $3,931 |
| Honda Accord EX 4-Dr Sedan | $3,938 |
| Honda CR-V EX 4WD | $3,973 |
| Toyota Prius | $4,282 |
| Honda Odyssey LX | $4,357 |
| Ford Explorer XLT AWD | $4,399 |
| Jeep Wrangler Sahara 4WD 2-Dr | $4,407 |
| Honda Civic DX 4-Dr Sedan | $4,623 |
| Ford Edge Limited 2WD | $4,628 |
| Chevrolet Equinox LS AWD | $4,665 |
| Toyota Camry LE | $4,671 |
| Volkswagen Jetta S 4-Dr Sedan | $4,665 |
| Toyota RAV4 Sport 4WD | $4,671 |
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Data assumes single female driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Florida minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium costs do not factor in vehicle location which can decrease or increase insurance rates significantly.
Looking at the rates, vehicles like the Ford Escape, Honda Accord, and Honda CR-V are most likely going to be a few of the less-costly vehicles to insure for teen drivers. Auto insurance rates will tend to be more expensive just due to the fact that there is more inherent risk for 18 year olds, but overall those specific models will most likely have the cheapest car insurance rates compared to other types of vehicles.
Locating low-priced auto insurance is not the easiest thing to do, and figuring out which insurers offer the cheapest insurance rates for 18 year olds takes even more shopping around.
Each insurer uses slightly different criteria to determine rates, so let’s begin by examining the insurance companies that tend to be cheaper in Orlando, FL. It’s a good idea to be aware that Orlando insurance rates are impacted by many things that may substantially change the price you have to pay for coverage. This price variation is why it is so important to perform an extensive rate comparison when trying to get the best insurance quotes for 18 year olds. Insurance rates are influenced by many risk factors and can decrease or increase without notice, so the most economical company when you last compared rates may now be one of the higher cost companies.
Best Auto Insurance Prices for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $948 |
| 2 | Electric | $1,712 |
| 3 | Amica | $1,712 |
| 4 | Progressive | $1,775 |
| 5 | Travelers | $1,926 |
| 6 | Mercury | $1,992 |
| 7 | Allied | $2,004 |
| 8 | State Farm | $2,068 |
| 9 | Esurance | $2,082 |
| 10 | GEICO | $2,108 |
| 11 | Auto-Owners | $2,149 |
| 12 | 21st Century | $2,397 |
| 13 | Allstate | $2,411 |
| 14 | Windhaven Insurance | $2,549 |
| 15 | Hanover | $2,934 |
| 16 | MetLife | $2,988 |
| 17 | Liberty Mutual | $3,009 |
| 18 | Safeco | $3,016 |
| 19 | United Automobile | $3,527 |
| 20 | Direct General | $4,022 |
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USAA has some of the lowest car insurance rates in Orlando at around $948 a year. This is $1,500 less than the average policy premium paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Travelers also make the cut as some of the cheaper Orlando, FL insurance companies.
As the rates illustrate above, if you have coverage with Progressive and switched to Electric, you may realize an annual premium reduction of upwards of $63. Policyholders with Travelers might save as much as $214 a year, and Mercury policyholders might lower prices by up to $280 a year.
Bear in mind that those rates are averaged for all drivers and vehicles in Florida and do not take into consideration a specific vehicle garaging location for 18 year olds. So the car insurance company that is best for you may not even be in the top 21 companies shown above. That emphasizes why you need to get auto insurance quotes using your own individual information.
Bad driving habits will cost you more
The obvious way to score affordable insurance premiums in Orlando for teen drivers is to be a safe driver and avoid accidents and violations. The illustration below shows how violations and fender-benders can influence auto insurance costs for each age group. The data assumes a married male driver, full coverage, $1,000 deductibles, and no discounts are applied to the premium.
In the previous example, the average cost of car insurance in Florida per year with a clean driving record and no accidents is $1,976. Factor in one speeding ticket and the average cost swells to $2,277, an increase of $301 each year. Now add in two accidents along with the one speeding ticket and the yearly cost of insurance for 18 year olds goes up to an average of $5,124. That’s an increase of $3,148, or $262 per month, just for not driving responsibly!
Discount Orlando insurance
Insurance companies that sell policies for 18 year olds may also provide policy discounts that could reduce prices by as much as 40% or more if you qualify for them. A few popular companies and their possible discounts can be found below.
- AAA offers discounts for education and occupation, multi-policy, anti-theft, multi-car, good student, and good driver.
- Progressive has savings for online signing, multi-policy, multi-vehicle, homeowner, and online quote discount.
- State Farm may have discounts that include safe vehicle, driver’s education, anti-theft, multiple autos, good driver, and Drive Safe & Save.
- Esurance offers premium reductions for paid-in-full, claim free, DriveSense, multi-car, and Switch & Save.
- Nationwide may include discounts for multi-policy, family plan, accident-free, Farm Bureau membership, easy pay, and defensive driving.
The chart below illustrates the comparison of auto insurance costs with and without discounts applied to the policy premium. The costs are based on a male driver, no accidents, no driving violations, Florida state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with good student, anti-theft, passive restraint, vehicle safety, paperless filing, and paid-in-full discounts applied. When taking advantage of discounts, theamount saved on insurance for 18 year olds is 28% or $823.
Shop around and save
Florida insurance rates are impacted by many factors that will increase or decrease the price you have to pay. Simply turning a year older, increasing liability limits, or getting a couple of tickets can trigger price changes that can cause some rates to be cheaper than others. In addition, insurers amend pricing without warning to help ensure profitability. Higher than usual claims can cause additional price hikes, while long-term profits can produce lower-cost Orlando car insurance rates.
As an example, the bar chart below compares the cheapest car insurance in Orlando, FL for a 30-year-old female driver with no prior claims, no tickets, and a decent credit rating. If we compare prices based on her current risk factors, USAA quotes the most affordable car insurance rates in Orlando at $1,179 a year. This is $1,269 less than the average policy premium paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Travelers are the remaining top five cheapest Orlando, FL auto insurance companies.
The next chart shows rates after we give the driver from the first set of rates a claim surcharge, bad credit, and a traffic ticket or two. Due to the fact that each insurance company uses their own formula to establish rates, comparing insurance quotes may now result in a new list of the cheapest Orlando car insurance companies as shown below.
USAA now has the lowest price in Orlando, FL with Mercury, Esurance, State Farm, and Auto-Owners also having competitive pricing. This example illustrates why consumers need to take the time to shop around to get the lowest car insurance quotes for 18 year olds. Insurance prices are made up of many different factors and can decrease or increase without notice, so the most economical company the last time you compared rates may now be costing you a lot of money.