Finding low-cost car insurance is not most people’s favorite thing to do, and finding out which companies offer the lowest-priced auto insurance rates for drivers under 25 takes even more diligence. Every auto insurer has their own unique process to set policy rates, so let’s take a look at the auto insurance companies with the overall best prices in Florida.
It’s a good idea to be aware that Florida auto insurance rates are based on many factors which can substantially decrease or increase the price you have to pay. Improving your credit rating, buying a home, or getting a couple of tickets may prompt premium changes resulting in some companies being way too expensive in comparison to the competition.
Cheapest Insurance Rates for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $948 |
| 2 | Electric | $1,712 |
| 3 | Amica | $1,764 |
| 4 | Progressive | $1,793 |
| 5 | Travelers | $1,869 |
| 6 | Mercury | $1,973 |
| 7 | Allied | $2,004 |
| 8 | Esurance | $2,020 |
| 9 | State Farm | $2,047 |
| 10 | GEICO | $2,086 |
| 11 | Auto-Owners | $2,149 |
| 12 | Allstate | $2,340 |
| 13 | 21st Century | $2,445 |
| 14 | Windhaven Insurance | $2,549 |
| 15 | Safeco | $2,987 |
| 16 | MetLife | $2,988 |
| 17 | Hanover | $3,054 |
| 18 | Liberty Mutual | $3,131 |
| 19 | United Automobile | $3,422 |
| 20 | Direct General | $4,062 |
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USAA may offer some of the best car insurance rates in Tampa at around $948 a year. This is $1,500 less than the average premium paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Travelers also make the cut as some of the cheapest Tampa, FL car insurance companies.
As illustrated above, if you currently have a policy with Progressive and switched to USAA, you might realize yearly savings of in the vicinity of $845. Drivers with Travelers could save as much as $921 a year, and Mercury policyholders might lower prices by $1,025 a year.
These rates are averages across all types of insureds and vehicles and and are not calculated with an exact zip code location for drivers under 25. So the car insurance company that can offer the best rates for your situation may not even be in the top 21 companies in the list above. That points out the importance of why you need to quote rates from many companies using your own driver data and vehicle information.
One of the more important criteria that are looked at to help calculate the cost of insurance is where you live in Tampa. Areas with high crime rates or more dense population tend to have higher rates, whereas areas with less crime or weather claims benefit from lower prices.
The next table sorts the most expensive places in Florida for drivers under 25 to buy car insurance in. Tampa is ranked at #7 with the yearly price of $2,610 for the average policyholder, which is about $218 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Hialeah | $3,630 |
| 2 | Miami | $3,177 |
| 3 | Miami Gardens | $3,149 |
| 4 | Miami Beach | $2,923 |
| 5 | West Palm Beach | $2,705 |
| 6 | Hollywood | $2,630 |
| 7 | Tampa | $2,610 |
| 8 | Miramar | $2,603 |
| 9 | Pompano Beach | $2,595 |
| 10 | Fort Lauderdale | $2,576 |
| 11 | Coral Springs | $2,549 |
| 12 | Davie | $2,523 |
| 13 | Pembroke Pines | $2,505 |
| 14 | Brandon | $2,368 |
| 15 | St. Petersburg | $2,286 |
| 16 | Clearwater | $2,238 |
| 17 | Spring Hill | $2,123 |
| 18 | Orlando | $2,029 |
| 19 | Jacksonville | $2,020 |
| 20 | Port St. Lucie | $1,975 |
| 21 | Cape Coral | $1,917 |
| 22 | Lakeland | $1,901 |
| 23 | Palm Bay | $1,803 |
| 24 | Tallahassee | $1,801 |
| 25 | Gainesville | $1,646 |
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Rates are estimated as specific Tampa zip code can alter coverage rates considerably.
Full coverage rates vs. liability-only in Tampa
Reducing the cost of auto insurance is the goal of the majority of people, and one of the easiest ways to find cheaper insurance for drivers under 25 is to only buy liability insurance. The chart below visualizes the comparison of car insurance rates with full coverage and liability only. The premiums assume a clean driving record, no at-fault accidents, $100 deductibles, drivers are single, and no other discounts are factored in.
If all age groups are averaged, comprehensive and collision coverage on your policy costs an extra $3,196 per year over liability only. At some point, about every driver wonders when is the right time to remove full coverage. There is no set rule for dropping comp and collision coverage, but there is a broad guideline. If the annual cost of your full coverage insurance is more than about 10% of replacement cost minus your deductible, then you might want to think about dropping full coverage.
For example, let’s say your vehicle’s replacement cost is $5,500 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, you would only receive $4,500 after paying your policy deductible. If you are paying over $450 a year for comprehensive and collision coverage, then it might be time to buy liability only.
There are a few cases where only buying liability is not financially feasible. If you still owe money on your vehicle, you have to carry full coverage to satisfy the loan requirements. Also, if your savings is not enough to buy a different vehicle in case of an accident, you should not drop full coverage.
Auto insurance companies ranked
Choosing the highest-rated insurance provider can be difficult considering how many companies there are to choose from in Tampa. The company information displayed below can help you analyze which providers you want to consider when trying find the best insurance for drivers under 25. These ratings are only made up of companies who write in the majority of U.S. states, so companies that only write business in Florida or surrounding areas are not factored into this list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| Mercury Insurance | 97 | 96 | 88 | 89% | A+ | 93.4 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
| 21st Century | 86 | 82 | 90 | 84% | A | 86.4 |
| Liberty Mutual | 79 | 87 | 95 | 78% | A | 85.3 |
| Farmers Insurance | 77 | 80 | 80 | 84% | A | 80.3 |
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Data Source: Insure.com Best Car Insurance Companies
Tampa car insurance rates
Tampa, FL auto insurance rates are influenced by many factors that may substantially change the cost of having a policy. Simply having a birthday, having a claim, or getting a ticket for careless driving can trigger price changes that can make some companies affordable when they were higher priced. Not only may things change on your end, but auto insurance companies change the rates they charge in Florida as often as every quarter to adjust for heavy claims or excess profits. Higher than normal claims may cause higher prices, while a lower level of claims can produce lower-priced Tampa car insurance rates.
For instance, the chart below shows the company with the cheapest car insurance in Tampa, FL for a 45-year-old female driver with a good driving record, no prior claims, and great credit. If we compare prices based on her personal profile, USAA has the most affordable car insurance rates in Tampa at $1,473 a year. This is $975 less than the average premium paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Travelers are also included in the cheapest Tampa, FL auto insurance companies.
Now we will give the driver from the first set of rates an at-fault accident, a lower credit rating, and a few blemishes on her driving record. Due to the fact that each insurance company has a proprietary method for setting prices, comparing rates may now result in a substantially altered list of the cheapest companies as shown below.
USAA now has the best auto insurance rate in Tampa, FL with Allied, Esurance, State Farm, and GEICO now being in the top five. This example demonstrates why consumers need to compare lots of rates when trying to get the lowest car insurance rates for drivers under 25. Rates are determined by many risk factors and change frequently, so the most economical company the last time you compared rates may now be priced much higher than other options.
How to find the cheapest insurance for drivers under 25
It is possible to find better rates, and here are some penny-pinching suggestions that can help Tampa drivers quote more affordable car insurance.
- Prevent price hikes by avoiding at-fault accidents
- Save money by bundling your home and auto policies
- Do not pay for full coverage on older vehicles
- Buy vehicles with good safety ratings
- Do not file small claims
- You will pay more if you get tickets or have at-fault accidents
- Comparison shop frequently
The final tip is notably vital, as we stressed in the article above. Rates fluctuate considerably, so don’t be hesitant to change to a new company if a lower-cost policy is available.
Many consumers stick with the same company and that’s fine, but is isn’t recommended if that stubbornness costs you a small fortune year after year. In just a few minutes you could shop around and find cheaper car insurance for drivers under 25 in Tampa.