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Which Car Insurance Is Cheapest For Young Drivers

Best Cheap Car Insurance in Florida for 2018

If you’re looking for cheap car insurance in Florida, comparison shopping is key. Rates for the same coverage options differ from one company to the next, and are based on personal factors such as your age, driving record and credit history.

To help simplify things, NerdWallet researched rates from the seven largest insurers in Florida and found the cheapest choices for these driver groups:

Also in this article

Cheapest for good drivers

For drivers with no at-fault accidents, DUIs or moving violations.

Geico had the cheapest rates for good drivers in our test, $1,290 per year, or about $108 per month. State Farm and Liberty Mutual were next cheapest, at $166 and $214 per month , respectively , highlighting the importance of shopping for the best quote even if you’re a safe driver.

Safe motorists in Florida should look for discounts, such as those for avoiding accidents and moving violations, to trim costs.

Cheapest for young drivers

For drivers in their early 20s.

Drivers in their early 20s tend to have fewer assets to protect from crash-related lawsuits than older motorists. That means they can often get by with leaner coverage and score relatively cheap car insurance in Florida.

Geico was the cheapest for this group, with an average quote of $718 per year, or $60 per month. State Farm and Liberty Mutual round out the best three rates for young Floridians.

Cheapest for drivers with one at-fault crash

Your rates will often go up at renewal time after you cause a crash.

Geico notched the best deal for this group at $1,777 per year. That’s roughly $40 a month higher than the lowest rate we found for drivers of the same age with no crashes. Overall, the priciest quote we found was over $5,500 , so it’s vital for drivers with blemished records to shop around to avoid an even bigger hit to their wallets.

Cheapest for drivers with poor credit

For drivers placed in the lowest credit tier as determined by the industry.

Insurers often use a credit-based insurance score to help predict whether you’ll file claims, and they can charge higher prices in Florida if you have poor credit. Geico had the lowest rate by far in our analysis at $2,572 per year, which is $814 lower than the runner-up, State Farm. Liberty Mutual rounds out the top three in this group.

Geico’s rate for this group is $1,282 per year higher than its rate for motorists who have good credit. If you improve your credit by making on-time payments and keeping credit balances low, shop again for better car insurance prices.

Cheapest for retired drivers

For drivers in their mid- to late 60s who no longer use their car for commuting.

Retired drivers typically travel fewer miles annually than their commuting counterparts, and they can find relatively cheap car insurance in Florida as a result.

We gathered rates for motorists in their 60s who drive half as much as other groups. Geico paced the field with an average rate of $1,015 per year. Motorists age 55 or older (in some cases 50 or older) also stand to earn a discount on their rates by completing a state-approved motor vehicle accident prevention course .

Cheapest for drivers with a military connection

If you’re an active member of the military or a veteran — or have an immediate family member who is — chances are you’ll get a very good rate with USAA, an option that isn’t available to the general public. USAA was by far the cheapest option for every category above , except drivers with poor credit. The insurer also has had historically top-rated customer service.

Minimum car insurance requirements in Florida

Floridians must carry property damage liability and personal injury protection (PIP) in the following amounts:

  • $10,000 property damage liability per accident
  • $10,000 personal injury protection

If you’re at fault in a crash, the Florida Financial Responsibility Law also requires you to be able to pay up to:

  • $10,000 in bodily injury liability per person.
  • $20,000 in bodily injury liability per accident.

Experts recommend buying more than the bare minimum when it comes to all parts of your auto liability insurance. You might want added protection from optional coverages such as collision, comprehensive and uninsured motorist insurance.

Check out NerdWallet’s guide to car insurance requirements by state for more details on coverages you might want on your Florida auto policy.

Alternative auto insurance in Florida

Sunshine State drivers who’ve been denied car insurance because of a spotty driving history or other factors can apply for coverage through the Florida Automobile Joint Underwriting Association .

For more help finding cheap car insurance in Florida, try NerdWallet’s car insurance quote comparison tool .

No-fault insurance in Florida

Florida is one of several states that has a no-fault car insurance system.

In most states, drivers who are injured in a car accident caused by someone else will seek reimbursement from the at-fault motorist’s insurance company. But under no-fault insurance, all parties involved in a crash first make injury claims to their own insurers, no matter who caused the incident.

Drivers in Florida are required to carry at least $10,000 of personal injury protection, which is also called Florida no-fault insurance.

PIP can also pay:

  • Lost wages if crash-related injuries force you to miss work
  • The cost of hiring in-home care if you need help due to injuries
  • The cost of equipment you need while recovering, such as a wheelchair
  • Funeral costs

Note that PIP will also cover your passengers’ injuries, but it doesn’t cover damage to your car. You go through the at-fault driver’s insurance for vehicle repairs or through your own collision coverage if you were responsible.

If you cause serious injuries, you can still be sued. That’s why it’s a good idea to also buy liability coverage for injuries if you live in Florida.

Here’s a summary of where you’ll find the cheapest insurance, by category:

Cheap car insurance for young drivers: 5 hacks for 2018

Car insurance rates have been climbing over recent years, and 2018 will see the continuation of that trend. If you’re in the market for car insurance for new drivers, say teens, or car insurance for college students, that isn’t good news, as rates are super high for inexperienced motorists. But you’re in the right place to learn how to lower car insurance costs, even though finding cheap car insurance for young drivers is challenging, it’s not impossible.

But, first, you may be wondering: Why is car insurance is so expensive?

Federal research shows people are driving more — the average miles driven per year is on the rise — and more motorists on the road means more accidents. The cost to repair newer model cars with high-tech safety devices and sensor technology is also increasing, as are medical costs for injuries. And don’t forget about the hurricane and hail damage from recent severe weather storms. Insurers are passing on some of these higher expenses to you in the form of higher car insurance rates to recoup their losses.

5 tips to get cheap car insurance for young drivers

To help you trim costs, Penny Gusner, CarInsurance.com consumer analyst, advises the following:

1. Take a defensive driving course or driver training course

Defensive driving classes go beyond the basics taught in driver’s education by having motorists learn how to drive in hazardous conditions, anticipate dangerous situations and avoid accidents. The best part? The cost is usually only $25 to $75 and you’ll typically snag a discount of five to 15 percent for three years. Note, however, that insurer and state law requirements for these discounts vary a great deal. For example, 21st Century Insurance offers a discount to drivers under the age of 21 who take a state approved defensive driver course but with Esurance the discount is not age-based and is available to all drivers in New York, New Jersey, North Dakota, Georgia and Oklahoma.

Another option, though it also comes with exceptions, is to take a driver training course. Some car insurance companies will offer a discount between five and 15 percent, for driving training courses, while others do not since it is part of the licensing process.

2. Stay on your parent’s policy

If at all possible, stay as a named driver on your parent’s policy as long as you can. This is usually the cheapest way to get insurance if you are a young driver. You and your parents can net a multi-car discount of up to 25 percent.

3. Be sure you are assigned to the cheapest car in the household

If your household has several cars, it can save money to have you assigned to a specific one — the one that’s cheapest to insure. Check your policy and be sure to double-check this with your insurer, as some companies will automatically assign young drivers to the most expensive vehicle unless you tell them otherwise.

4. Cash in on distance discounts

Car insurance for college students can be pricey for sure, but you can capitalize on certain discounts. One that can reap up to 20 percent off is the “Student Away” discount. Typically, you qualify if you are listed on your parent’s policy and drive one of their cars they keep at home but attend college 100 or miles away. Some insurers may also require that you are under age 26 and unmarried to receive the discount.

5. Compare car insurance quotes online

We fooled you, as chances are you thought we’d list the “good student discount,” which usually gives up to 15 percent off for those who maintain a “B” average, but most folks are aware of that. While it’s a bonus that’s good to get, and one we recommend you look into, you can likely save way more by simply doing a car insurance comparison to see who offers the lowest rates. Here’s why: Rates for the exact same coverage vary by hundreds of dollars, depending on which insurer you choose. That’s because each insurance company assesses risk differently and uses its own formula when deciding how much you pay. If you don’t shop around, you won’t save. You can see how much you can save by using our average car insurance rates tool, which shows rates by ZIP code for six age groups and three coverage levels, as well as the highest and lowest rates fielded from up to six major insurers.

Which auto insurance companies have the best rates?

To help you buy the most affordable coverage, in the chart below you’ll see average rates by company for each state for drivers age 20 for state minimum liability limits.

Finding the Cheapest Car Insurance for Teens

If you’ve ever had to buy car insurance for teens , you know coverage can be brutally expensive.

That’s why it’s especially important for parents of teen drivers to compare prices from multiple insurance companies and look for discounts.

Car insurance for teens and their families

To give you a rough idea of how much it’ll cost to insure your teen driver, we looked at rates in the eight most populous states for a family with and without a teenager behind the wheel of two popular models.

In our analysis, rates to add a teen driver to a policy generally ranged from $1,200 per year to $2,200 per year — though rates were much higher in some cases, depending on the insurer.

How to score cheap car insurance for teens

If that sounds like a lot of money, a wide variety of discount are available that can help soften the financial blow of adding a teen driver to your policy. Amounts vary by state and company, but “up to” 10%, 15% or 25% off is a pretty common refrain.

Here are some ways to save money:

  • Add the teen to the parents’ policy rather than putting them on their own policy. NerdWallet’s research has shown it’s much less expensive to add a teen to a policy with parents.
  • Get good grades. Families with students with a B or better average in school are frequently eligible for car insurance discounts.
  • Take driver’s training . Young drivers who took a driver’s education course were less likely to get a traffic ticket, less likely to have an accident and less likely to be in an accident resulting in injury or death than those who didn’t, according to a 2015 University of Nebraska-Lincoln study.
  • Leave the car at home. Some insurers offer a discount if the student is attending school at least 100 miles away from home and doesn’t take a car. (Students are still covered when they drive while at home on breaks.)

Methodology

NerdWallet looked at insurance rates from the largest insurers for 10 ZIP codes in the eight most populous states — California, Florida, Georgia, Illinois, New York, Ohio, Pennsylvania and Texas — for a 2015 Toyota Camry and a 2015 Ford Escape. We analyzed rates for two 50-year-old married adults versus rates for two 50-year-old married adults with an 18-year-old driver licensed at age 16. In most cases we used liability coverage of $100,000 per person and $300,000 per incident; $50,000 property damage coverage, uninsured motorist bodily injury coverage of $100,000 per person and $300,000 per incident, and $1,000 in comprehensive and collision coverage. These are sample rates generated through Quadrant Information Services. Your own rates will differ.

Buying cheap car insurance for teens: 6 essential tips

As the parent or guardian of a young driver, you know it’s essential to have good car insurance to protect them. Whether you’re paying for it or they’re working hard to foot the bill, it’s a new expense for your family. Fortunately, you can find cheap car insurance for teens without breaking the bank. Here are the six ways to lower the cost of a young driver on your policy:

1. Learn about Good Student discounts

Students with higher grade point averages are usually more responsible and better drivers. If your young driver earns a B average or better at school, you may qualify for a good student discount on Nationwide teen car insurance.

2. Install anti-theft devices

You may save when you install an anti-theft device in the vehicle. Your possible discount varies based on the type of device installed and the state in which the vehicle is garaged.

3. Keep rates low for teen car insurance with Accident Forgiveness

Accidents happen to even the best young drivers. And if one does occur, insurance rates may rise as much as 30%. If you have Nationwide’s Accident Forgiveness as part of your teen car insurance package, your rates will not increase following the first at-fault automobile accident.

4. Take a defensive driving class

When your teen successfully completes an approved motor vehicle accident prevention course, this Nationwide discount may help you get affordable car insurance.

5. Choose the right teen car insurance policy for your needs

With Nationwide, there are lots of ways to protect your teen while staying within your budget. For example, a higher auto insurance deductible may lower the rate, but could mean more out-of-pocket expenses after an accident. If the vehicle is older or has very high mileage, liability coverage may be a better option than collision or comprehensive – though it will not cover damages to the car after an at-fault accident. Getting the right coverage that best fits your needs is important for saving money on your teen auto policy. Learn more about Nationwide’s auto insurance coverage types today.

6. Stay safe with teen driving tips

One of the most reliable ways to keep insurance costs low is to avoid accidents. Learn about the risks teen drivers face and get tips for how to prevent them. Nationwide’s teen driving resource center offers practical information about teen decision making, distracted driving, the role of parents in teen driving and more.

Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which control coverage determinations. Such terms may vary by state, and exclusions may apply. Discounts may not be applied to all policy coverages.

Cheap car insurance quotes for young drivers

Car insurance for young drivers

By Anita Shargall on Friday 13 July 2018

New to the road? We’ll help young drivers find an affordable policy for their car insurance.

In this Article

If you have just passed your test and are itching to get out there on the open road, you are likely to find that you won’t be able to get that modified motor you were dreaming of. This is because, unfortunately, car insurance for young people is often expensive.

Young drivers insurance costs an average of £1,197 for a fully comprehensive policy in May 2018, according to MoneySuperMarket data. Since young drivers aged 18 to 24 are considered the riskiest on the road, it’s no secret that they tend to pay more for their insurance.

Car insurance for young drivers is expensive because young motorists are considered statistically riskier drivers by insurers, so are more likely to make a claim. In fact, 19% of 18 and 19 year olds made a claim on their car insurance between January and April 2018.

While it can be challenging to find cheap car insurance for younger drivers, it is not impossible. This guide will help you find a better deal for your car insurance, hopefully without breaking the bank.

According to the average price of quotes run on MoneySuperMarket in between January and April 2018.

What are the cheapest cars to insure for young drivers?

All cars are classified into insurance groups, numbered from one to 50, and as such the cheapest cars to insure will sit in the first few groups. More powerful cars, or those which have been modified or have an improved performance, will sit in the higher groups making them much more expensive for a young driver to insure.

As of May 2018, the cheapest cars to insure for drivers under 25 are:

Car manufacturer and make

Average annual premium

Data collated between January and April 2018, from cars in insurance groups 1-3, and manufactured from 2006 onwards. Based on car insurance quotes run on MoneySuperMarket.

As the table shows, your ideal car might not be the best option if your priority is saving money on your car insurance. It pays to do your research, and opt for a model of car which could be cheaper to insure.

As a younger driver, you’ve probably got a few car models in mind already. Our car insurance comparison service lets you research different types of car to get an idea of what cover you could get, and at what cost.

According to quotes run on MoneySuperMarket between August 1, 2017 and January 31, 2018.

Best insurance for young drivers

Everyone must have insurance, by law, and the minimum level of insurance you can have is third party car insurance , followed by third party fire and theft (TPFT), which offers you more protection for your vehicle. The most extensive level of cover is fully comprehensive car insurance, which covers you for most outcomes.

It’s important to compare all levels of car cover because fully comprehensive is rarely the most expensive option, contrary to what you might expect. This is because third party, and TPFT, have become the reflex choice of risky or convicted drivers looking to save money. This has prompted insurance companies to significantly raise the price of these policies.

In fact, an average third party only policy costs around £1,050 more than the average fully comprehensive policy if you are a young driver. That’s because the average cost for a third party only policy for 18 to 24 year-olds was £2,263.35, compared with £1,197 for a fully comprehensive policy, according to average quotes run on MoneySuperMarket in May 2018.

Consider the ‘telematics’ option

Whether you call it black box or telematics car insurance, this satellite technology offers an effective way to lower the cost of car insurance for young drivers – MoneySuperMarket data shows that you could save £385.25 on average, which is a lot of money for young drivers.

It works by using a small transmitter in your car, or via a smart phone app, to relay information on your driving style and driving patterns back to your insurer, so they can base the price of your premium on how you actually drive. Telematics insurance relies less on how people in your demographic drive.

This approach is viewed as a fairer way of pricing policies and has seen many young drivers have their premiums significantly reduced. Black box insurance becomes much less impactful as you get older and more experienced as a driver, so it might be worth considering before you hit 25 years old.

MoneySuperMarket data showing the average quoted savings for drivers aged 17 to 24 when they take out a telematics policy, between January and March 2018.

Cheap car insurance for young drivers

The good news is that there are a number of ways to get cheaper car insurance for young drivers:

  • Compare car insurance quotes: By using our comparison tool you can instantly compare car insurance quotes to find the best cover to suit your motoring and financial requirements.
  • Improve your driving skills: Some insurers will reduce your premium if you have completed Pass Plus.
  • Add a named driver: Remember it’s crucial that the person who does the most driving in that car is listed as the ‘main driver’. Only 34% of young drivers utilise this way of making their policy cheaper, so there are plenty of younger drivers who could.
  • Pay upfront for your annual car insurance: Paying monthly can cost more due to the interest charged on instalments.
  • Pay a voluntary excess: Keep in mind that, after a certain level of excess, the cost of cover doesn’t change, and you must be sure that you can afford the level of excess that you have set for yourself.

The average cost of insurance for cars in insurance groups 1-3, and manufactured from 2006 onwards is based on car insurance quotes run on MoneySuperMarket between January and April 2018.

Compare young drivers insurance with MoneySuperMarket

It is a good idea to compare car insurance quotes as a young driver as MoneySuperMarket search through hundreds of competitive policies to do the hard work for you. If you are a young driver, we could help you find an affordable policy tailored to your needs.

When you compare, you will be asked about your car, where you live, your occupation and if you have any convictions – driving or otherwise. It is important to answer truthfully and disclose anything you feel may be required. If you do not, then when you make a claim your policy could be invalid and your claim will be rejected.

Comparing car insurance only takes a few minutes and you could save hundreds of pounds on your premium. Get your journey started today and find the correct policy for you.

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