For new drivers, one of the big components that aid in calculating the amount you pay for auto insurance is where you live in Orlando. More populated areas tend to have higher rates, whereas areas that tend to be more rural benefit from lower prices.
The illustration below rates the highest-priced places in Florida for first-time drivers in which to purchase auto insurance. Orlando comes in at #18 with an annual rate of $2,069 on average, which is around $172 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Hialeah | $3,630 |
| 2 | Miami Gardens | $3,277 |
| 3 | Miami | $3,273 |
| 4 | Miami Beach | $3,043 |
| 5 | Miramar | $2,709 |
| 6 | West Palm Beach | $2,625 |
| 7 | Tampa | $2,610 |
| 8 | Hollywood | $2,604 |
| 9 | Fort Lauderdale | $2,576 |
| 10 | Coral Springs | $2,549 |
| 11 | Pompano Beach | $2,543 |
| 12 | Pembroke Pines | $2,481 |
| 13 | Davie | $2,473 |
| 14 | Brandon | $2,322 |
| 15 | St. Petersburg | $2,263 |
| 16 | Clearwater | $2,238 |
| 17 | Spring Hill | $2,123 |
| 18 | Orlando | $2,069 |
| 19 | Jacksonville | $1,980 |
| 20 | Port St. Lucie | $1,975 |
| 21 | Cape Coral | $1,917 |
| 22 | Lakeland | $1,845 |
| 23 | Palm Bay | $1,803 |
| 24 | Tallahassee | $1,748 |
| 25 | Gainesville | $1,646 |
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Rates are approximated as specific Orlando garaging address can affect premium rates significantly.
Deciphering which insurers offer the most affordable auto insurance rates for first-time drivers involves a little more effort in order to find coverage that fits your budget.
Each auto insurer has a proprietary formula to determine rates, so let’s take a look at the lowest cost auto insurance companies in Orlando, FL.
Find Cheaper Auto Insurance for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $957 |
| 2 | Amica | $1,694 |
| 3 | Electric | $1,712 |
| 4 | Progressive | $1,793 |
| 5 | Mercury | $1,914 |
| 6 | Travelers | $1,945 |
| 7 | Allied | $1,985 |
| 8 | Esurance | $2,082 |
| 9 | Auto-Owners | $2,085 |
| 10 | GEICO | $2,108 |
| 11 | State Farm | $2,131 |
| 12 | Allstate | $2,388 |
| 13 | 21st Century | $2,445 |
| 14 | Windhaven Insurance | $2,653 |
| 15 | MetLife | $2,870 |
| 16 | Safeco | $2,898 |
| 17 | Hanover | $2,964 |
| 18 | Liberty Mutual | $3,039 |
| 19 | United Automobile | $3,562 |
| 20 | Direct General | $4,062 |
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USAA has some of the most affordable car insurance rates in Orlando at around $957 each year. This is $1,491 less than the average rate paid by Florida drivers of $2,448. Amica, Electric, Progressive, and Mercury are also some of the most economical Orlando, FL insurance companies.
In the above example, if you are insured with Mercury and switched to Amica, you may realize an annual savings of about $220. Florida drivers with Travelers could save as much as $251 a year, and Allied policyholders might lower prices by up to $291 a year.
Bear in mind that those policy prices are averaged across all types of insureds and vehicles and do not take into consideration an exact vehicle garaging location for first-time drivers. So the auto insurance company that fits your age and vehicle best may not even be in the list above. That helps illustrate why you need to quote rates from many companies using your own specific driver information and vehicle.
The car, truck, or SUV you are seeking coverage for is a significant factor that determines the availability of the most economical car insurance for first-time drivers. Vehicles with limited speed and performance, excellent safety ratings, or a low likelihood of liability claims will cost much less to insure than fast, unsafe models.
The next list outlines auto insurance premiums for some of the cheapest automobiles to insure.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $5,020 |
| Honda Accord EX 4-Dr Sedan | $5,030 |
| Ford Escape XLS 4WD | $5,020 |
| Toyota Prius | $5,450 |
| Ford F-150 XLT Super Cab 2WD | $5,629 |
| Dodge Grand Caravan SE | $5,634 |
| Ford Explorer XLT 4WD | $5,629 |
| Chevrolet Impala LS | $5,903 |
| Ford Edge SEL AWD | $5,909 |
| Ford Focus S 4-Dr Sedan | $5,903 |
| Chevrolet Malibu LS | $5,956 |
| Toyota Camry LE | $5,961 |
| Toyota RAV4 Sport 4WD | $5,956 |
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Prices above based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Florida minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in zip code location which can decrease or increase price quotes significantly.
Based on these rates, vehicles like the Honda CR-V, Honda Accord, and Ford Escape are a few of the cheaper vehicles to insure for new drivers. The cost of a car insurance policy will be higher anyway because of the fact that there is a higher risk for first-time drivers, but in general those makes and models will most likely have the lowest prices that you are likely to find.
The information below demonstrates how choosing different deductibles can impact insurance rates when trying to find cheap insurance for first-time drivers. The information is based on a married male driver, full physical damage coverage, and no discounts are applied to the premium.
In the chart above, a 40-year-old driver could save $292 a year by switching from a $100 deductible up to a $500 deductible, or save $440 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old category, could drop their prices as much as $966 every year by using higher deductibles when buying full coverage.
When raising deductibles, it will be necessary to have additional funds in a savings account to be able to pay the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
How to get discounts on Orlando auto insurance
Auto insurance companies that offer coverage for first-time drivers may also give you rate discounts that could potentially reduce rates by as much as 35% if you qualify. The best auto insurance companies and some of the premium reductions they offer are detailed below.
- GEICO offers discounts for five-year accident-free, driver training, military active duty, multi-policy, good student, anti-lock brakes, and multi-vehicle.
- Mercury Insurance offers premium reductions for multi-car, professional/association, anti-theft, multi-policy, low natural disaster claims, accident-free, and good driver.
- Farmers Insurance offers discounts including early shopping, bundle discounts, mature driver, teen driver, good student, and pay in full.
- Auto-Owners Insurance discounts include anti-theft, multiple vehicles, good student, safe driver, and anti-lock brakes.
- Liberty Mutual policyholders can earn discounts including new graduate, new vehicle discount, safety features, good student, and exclusive group savings.
- SAFECO includes discounts for bundle discounts, multi-car, drive less, accident prevention training, and anti-theft.
- Progressive may include discounts for multi-vehicle, multi-policy, online quote discount, homeowner, and good student.
- USAA may have discounts that include driver training, family discount, multi-vehicle, safe driver, and defensive driver.
The chart below compares car insurance rates with and without discounts applied to the policy premium. The data is based on a male driver, no violations or accidents, Florida state minimum liability limits, full coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The lower bar shows the rates with paperless filing, good student, anti-theft, paid-in-full, vehicle safety, and passive restraint discounts applied. With discounts applied, the average savings per year on auto insurance for first-time drivers is 28% or $953.
Here’s why you should shop around
Florida auto insurance rates are determined by lots of factors that will increase or decrease the price you pay. Simply getting older, getting divorced, or having an at-fault accident may generate price changes that can make some companies cheaper than before.
Not only may things change on your end, but companies file new rates as often as every three months to ensure their profitability. Higher than normal claims can result in higher priced premiums, while profitable underwriting can cause lower-priced Orlando car insurance rates.
As an example, the graph below shows which company has the cheapest car insurance in Orlando, FL for a 35-year-old female driver with no accidents or violations, and great credit. When quoting prices based on her current situation, USAA might offer the most affordable car insurance rates in Orlando at $1,203 a year. This is $1,245 less than the average price paid by Florida drivers of $2,448. Amica, Electric, Progressive, and Mercury round out the rest of the cheapest Orlando, FL auto insurance companies.
The chart below compares rates after we give the driver from the first rate comparison a chargeable claim, bad credit, and a speeding citation. Due to the fact that each insurance company has their own formula for setting rates, comparing quotes may now present a slightly different list of affordable companies as shown below.
USAA now has the best insurance rate in Orlando with Allied, Esurance, State Farm, and GEICO also being competitive. This example shows why Florida drivers need to perform an extensive rate comparison when trying to get affordable auto insurance rates for first-time drivers.
Prices are calculated by many risk factors and can change substantially, so the lowest-price company when you bought your policy may now be an over-priced policy.