For youthful drivers, one of the more important considerations that help determine auto insurance rates is where you normally keep your vehicle in Orlando. Areas with a lot of weather claims or more people tend to have higher rates, whereas areas with lower crime rates and fewer weather claims benefit from having to pay less for coverage.
The information below sorts the most expensive places in Florida for young drivers in which to buy car insurance. Orlando is listed at #19 with an annual cost of $2,029 on average, which is approximately $169 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Hialeah | $3,595 |
| 2 | Miami Gardens | $3,245 |
| 3 | Miami | $3,241 |
| 4 | Miami Beach | $3,013 |
| 5 | Miramar | $2,709 |
| 6 | West Palm Beach | $2,625 |
| 7 | Hollywood | $2,552 |
| 8 | Pompano Beach | $2,543 |
| 9 | Tampa | $2,532 |
| 10 | Davie | $2,523 |
| 11 | Fort Lauderdale | $2,500 |
| 12 | Coral Springs | $2,499 |
| 13 | Pembroke Pines | $2,431 |
| 14 | Brandon | $2,368 |
| 15 | Clearwater | $2,260 |
| 16 | St. Petersburg | $2,219 |
| 17 | Spring Hill | $2,102 |
| 18 | Jacksonville | $2,040 |
| 19 | Orlando | $2,029 |
| 20 | Port St. Lucie | $1,975 |
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Rate quotes are estimated as the vehicle garaging location can affect premium rates significantly.
Deciding which company quotes the lowest-priced insurance rates for young drivers will take more time in order to find coverage that fits your budget.
Every insurance provider has a proprietary formula to set premium rates, so we need to take a look at the insurance companies with the most affordable rates in Florida. It’s important to understand that Orlando, FL insurance rates are calculated based on many things that will increase or decrease the policy price. Turning one year older, marrying your spouse, or getting a ticket for running a stop sign can trigger rate changes that can now make some companies cheaper than others.
Find the Cheapest Auto Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $957 |
| 2 | Amica | $1,712 |
| 3 | Electric | $1,746 |
| 4 | Progressive | $1,829 |
| 5 | Travelers | $1,888 |
| 6 | Mercury | $1,914 |
| 7 | Allied | $1,945 |
| 8 | State Farm | $2,068 |
| 9 | Esurance | $2,082 |
| 10 | Auto-Owners | $2,107 |
| 11 | GEICO | $2,172 |
| 12 | Allstate | $2,340 |
| 13 | 21st Century | $2,445 |
| 14 | Windhaven Insurance | $2,627 |
| 15 | MetLife | $2,870 |
| 16 | Safeco | $2,987 |
| 17 | Hanover | $3,024 |
| 18 | Liberty Mutual | $3,101 |
| 19 | United Automobile | $3,562 |
| 20 | Direct General | $3,902 |
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USAA generally has some of the lowest car insurance rates in Orlando at around $957 a year. This is $1,491 less than the average rate paid by Florida drivers of $2,448. Amica, Electric, Progressive, and Travelers also rank well as some of the cheaper Orlando, FL auto insurance companies.
In this example, if you currently buy coverage from Amica and switched to USAA, you could earn a yearly price reduction of roughly $755. Drivers with Electric could save as much as $789 a year, and Progressive insureds might cut rates by $872 a year.
To find out how your current rates compare, click here to start your custom quote or visit any of the companies below.
Be aware that those estimates are averages across all insureds and vehicles and do not take into consideration a specific location for young drivers. So the insurer that has the lowest price for you may not even be in the top 21 companies shown above. That helps illustrate why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
Rate comparison of full coverage and liability-only
Saving money when shopping for insurance is probably important to most drivers, and one of the fastest ways to pay less for insurance for young drivers is to not buy comprehensive and collision coverage. The chart below illustrates the difference between insurance rates when comparing full coverage to liability only. The data is based on a clean driving record, no at-fault accidents, $1,000 deductibles, single status, and no discounts are applied to the premium.
Averaged for all age groups, comp and collision coverage costs $1,747 per year more than buying just liability insurance. A very common question is if you should buy full coverage at all. There is no specific rule that works best for making the decision to drop full coverage on your policy, but there is a broad guideline. If the annual cost of your full coverage insurance is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then it might be time to consider dropping full coverage.
For example, let’s say your vehicle’s book value is $8,500 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most your company would pay you is $7,500 after the deductible is paid. If you are paying more than $750 a year to have full coverage, then you may need to consider dropping full coverage.
The diagram below shows how different deductible levels can raise or lower insurance costs when getting quotes for cheap insurance for young drivers. The premium estimates are based on a married female driver, comp and collision included, and no discounts are taken into consideration.
In the chart above, a 50-year-old driver could lower their car insurance rates by $286 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $432 by selecting a $1,000 deductible. Even younger insureds, such as the 20-year-old chart data, could possibly save up to $708 annually by choosing a higher deductible.
When increasing deductibles, it will be necessary to have plenty of discretionary funds to satisfy the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
You are probably paying too much for car insurance
Orlando, FL insurance rates are influenced by many factors which can significantly increase or decrease the price you have to pay. Simply improving your credit, buying a different vehicle, or getting a reckless driving citation can cause premium changes resulting in some rates now being cheaper than competitors. In addition to those changes, insurance companies file new Florida auto insurance rates as often as every quarter in order to protect their financial rating. Higher than normal claims can cause increased policy costs, while a lower level of claims can result in lower-cost Orlando car insurance rates.
To illustrate this point, the graph below shows rates for the cheapest car insurance in Orlando, FL for a 45-year-old female driver with a clear driving record, no claims, and a decent credit rating. When quoting prices based on her current situation, USAA has the best car insurance rates in Orlando at $1,227 annually. This is $1,221 less than the average price paid by Florida drivers of $2,448. Amica, Electric, Progressive, and Travelers are the remaining cheapest Orlando, FL auto insurance companies.
Let’s now give the driver from the first example a chargeable claim, slightly worse credit, and a few traffic violations. Because each company has their own guidelines for filing rates in each state, comparing quotes will most likely result in a different ranking of the cheapest companies as shown below.
USAA now has the best insurance rate in Orlando, FL with Mercury, State Farm, Esurance, and Auto-Owners now being in the top five. This example illustrates why it is critical to perform an extensive rate comparison when trying to find affordable insurance rates for young drivers. Insurance prices consist of many different factors and can change substantially, so the best option the last time you shopped your coverage around may now be one of the more expensive options.
How to find the cheapest insurance for young drivers
Lowering your rates is not difficult, and here are a few money-saving solutions that can help Florida drivers find cheaper car insurance.
- Prevent rate increases by staying accident-free
- Buy a car with high safety ratings
- Violations and traffic tickets increase rates
- Buying home and auto insurance together can earn discounts
- Earn a discount by not filing claims
- Shop around for lower rates once a year
The last suggestion is especially necessary, as we emphasized in the prior article. Car insurance prices in Orlando can change in a short period of time, so drivers shouldn’t be resistant to change insurance companies if a lower price can be found. Many drivers prefer to stick with one company, but it isn’t a good idea if that dedication is costing hundreds every year. Spend a few minutes and shop around to find cheaper car insurance for young drivers.