Why is car insurance for Florida teens so expensive?

On your search for auto insurance, you’ve likely sorted through various quotes. A unique problem for parents is when their teenage son or daughter gets their license.

Why is auto insurance for Florida teens so expensive? For various reasons, insurance costs more for teenage drivers. Understanding the factors behind auto insurance rates can help you understand why Florida auto insurance for teens is so expensive.

If you live in Florida, you’ll notice higher-than-usual rates for teenaged drivers. This guide will help you find the best rates for your budget, along with the best options for your coverage level.

Looking to buy Florida teen auto insurance? Before you start, enter your ZIP to compare teen auto insurance quotes using our free tool.

Average Cost of Teen Auto Insurance

Teens everywhere pay a lot for insurance. They’re inexperienced, so insurance companies assume a higher likelihood of accidents. This is why teen car insurance costs so much more.

You may or may not be familiar with the differences in insurance rates across the age demographics. Below are the average rates, by company, for males and females age 17, 25, 35, and 60.

A few trends show up in this Florida data. For example, male teen drivers pay on average $10,123 annually for insurance. That’s about $1,700 more than their female peers.

Due to certain factors like a tendency to speed, males are usually charged more by insurance companies.

This holds true, even for the 60-year-old driver demographic. Stats show that male drivers in this category pay about $52 more per year, which is not insignificant.

Why is insurance so expensive for teenage drivers?

Can you remember getting into an accident as a teen? “Keep your eyes on the road!” is a common gibe from adults to younger drivers, but data shows that statistics hold up.

Teens are new to driving and thus more likely to have an accident.

Younger drivers are more prone to distraction. Studies from the National Highway and Traffic Safety Association indicate that teens’ risk for an accident goes up along with the number of passengers riding in the vehicle.

What determines auto insurance rates for teens?

Just like insurance adjusters look at factors such as marriage, homeownership, and accident history, they also look at age.

Teen car insurance discounts will help keep your rates down. Keep in mind that there are discounts that favor teens buying auto insurance. So, how much is car insurance for a teen in Florida?

Florida Teen Auto Insurance Prices

Let’s quickly break down the cost of insurance for teens in Florida. We will also answer the pressing question: do male teens pay more for auto insurance than females?

As you can see from the table above, teen driver prices are much higher for boys. Why do young males pay the most expensive auto insurance premiums?

Teenagers already pay a lot for car insurance, but males tend to pay more. When insurance adjusters are writing policies, they take accident statistics into account, such as the following:

• Newly licensed teenagers file a lot of claims, more expensive claims, or both
• Young drivers have no credit record to reference
• Single people tend to pay more for insurance than married people

For example, teens ages 16 to 19 cause nearly three times as many fatal crashes as adults 20 and over, according to the Insurance Institute for Highway Safety.

Teen boys and men cause crashes at higher rates than any other group. Roughly two-thirds of those crashes were caused by boys and men, down from 75% in 1975.

So, what is considered a lot for car insurance for a male teen? The most expensive rates in Florida top $17,000.

Now that we know some of the reasons why teens in Florida pay so much for auto insurance, let’s look at some options.

Why is auto insurance for a teen in Florida so expensive?

Let’s unpack the reason why Florida car insurance is so expensive.

First off, Florida requires its drivers to carry Personal Injury Protection (PIP) insurance. PIP is an extension of coverage existing in no-fault states. PIP coverage helps pay for your and your passengers’ medical bills after an auto accident, regardless of who is at fault.

Auto insurance rates are also higher because drivers in Florida are only required to carry very low minimums on their insurance. In turn, accidents resulting in higher loss ratios drive up the market prices, leading to increased rates. It’s against the law to drive without insurance in Florida. The required minimums for insurance in Florida are listed below.

The required minimums for Property Damage Liability and Personal Injury Protection are $10,000 each, respectively.

If you wish to acquire the minimum bodily injury requirements, you’re looking at $10,000 per person/$20,000 per accident.

If the required minimum coverages were higher, the individual cost of insurance would, perhaps, be lower in Florida.

How do rates in Florida compare to the rest of the country?

Florida ranks third compared to the rest of the country for auto insurance, according to the Insurance Information Institute. Only Louisiana and Michigan drivers pay more for insurance. You may also be asking: what is the most expensive insurance state for teen drivers? The same goes for teenaged drivers.

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Uninsured/Underinsured Motorist Coverage

Did you know that more Florida drivers are uninsured than any other state in the U.S.? If your teen’s policy is already burning a hole in your wallet, a terrible accident with an uninsured driver could break the bank.

Nearly 27 percent of the vehicles being driven in Florida are not insured, so it’s a good idea to purchase extra coverage.

The video below explains how uninsured/underinsured motorist coverage can help protect you if you’re in an accident with someone who’s underinsured.

Even if the other party has Liability insurance, this type of coverage may not be enough to cover damages.

This type of insurance “protects your wallet,” covering medical bills, missed work, and other extraneous expenses.

Who has the best rates for teen drivers in Florida?

Florida auto insurance rates are specific to a customer’s ZIP code and driving history.

Two of the three companies with the cheapest teen auto insurance in Florida, however, are Geico and USAA – these rates are up to 2.6 times lower than other competitors.

When shopping for insurance policies, it’s important to remember that USAA is only available to military members and their families.

Who has the worst rates for teen drivers in Florida?

Nobody wants to pay more than they have to for an auto policy. When we say worst, we mean the most expensive rates.

The most expensive auto insurance rates for teen drivers are Allstate and Progressive. Allstate costs an average of $16,542/year on average for teenage men and women, while Progressive is $10,983/year.

So, what’s considered a lot for car insurance for a male teen?

Males pay more on average than females. Allstate’s rates for males is a significant $17,179/year, while Liberty Mutual costs $12,116/year.

What is the cheapest insurance state for teen drivers?

Data shows that Pennsylvania teens pay as little as $1,553 if they choose Geico car insurance.

Since you probably aren’t planning on moving, there are ways to save on auto insurance prices for teenagers. Your existing policy, insurance company, and driving record are all factors to be taken into account.

Should teens shop around for better auto insurance rates?

Yes. Teens should definitely shop around for better car insurance rates when possible. With discounts like multi-policy, multi-driver, and good student, it’s important to get multiple quotes.

Cheap Teen Auto Insurance

When searching for cheap auto insurance, you may wonder if it’s better to shop online or with an independent agent.

There are obvious pros and cons to either avenue of buying insurance. However, you can perform the following actions on your own time:

• Purchasing insurance
• Maintaining insurance
• Signing insurance policies

One disadvantage to buying online is that you don’t get the same connection that you had with real-world agents in person, but the result is usually the same.

Insurance agents can get you rates for multiple policies, and you will always have them as a personal contact.

Saving Tips for Teen Drivers

If you’re the parent of a teen, your existing policy, insurance company, and driving record are all factors to be taken into account.

We know that having a teen driver on your policy has the potential to increase your rates significantly. Teen drivers are also eligible for discounts, which can be attained in many ways.

Aside from helping your children gain experience through driving with them, how can you find discounts that favor teens buying auto insurance? Discounts for grades are huge.

Teens that maintain a good GPA (usually higher than a 3.0), will get up to 35 percent discount on insurance rates. The video below explains some major ways to save money when your child is approaching driver age.

Rewarding good driving behaviors can help keep your teen on the right path. On the other hand, you may choose to revoke driving privileges for taking the car without asking or driving outside of permitted hours.

You might consider having your teenager wait until age 18 or 19 to get a license, instead of the usual 16 or younger in most states. In order to protect yourself legally, be sure to inform your insurer if the child isn’t licensed or is away at college without a car.

What is the cheapest way to get auto insurance for a teen?

There are more options than just good student discounts to save money on a teen auto policy. In fact. some of the options have more to do with the steps leading up to acquiring a policy. These steps are listed below.

1. Make Sure Your Teen Has the Right Vehicle – Pick something affordable yet reliable. You’ll also want to carry liability insurance.
2. Find Out if Your Teen is an Individual Operator – Most carriers give discounts if you list your teen driver as a secondary or occasional driver. Be sure to mention this to your agent.
3. Get PLPD Coverage – Personal liability and Property damage are the least amount of coverage you can purchase. You cannot get PLPD coverage if you have a loan on your vehicle.

The factors above, when combined, can significantly lower rates. Another common question is: Can going on a parent’s policy save teens money on insurance?

Most of the time, adding your teenaged son or daughter to your policy will save you money in the long run. You will get a multiple car discount, and/or multi-policy.

On the other hand, insurance companies operate on a case-by-case basis. Sometimes it’s actually cheaper to get a separate policy for your teenaged son or daughter.

Some Florida auto insurance companies have to apply a teen rate to all cars on the policy, not just the one being driven by the teen. Due to the fact that teens have high premiums already, keeping them as separate could actually save you money.

Conclusion

Shopping for car insurance for teens in Florida is a unique challenge, but there are ways to save money. We hope that our guide has provided you with the tools you need. What was the most helpful part of this guide?

Wondering how teens can easily compare auto insurance rates in Florida? Just enter your ZIP code in our free quote tool below to find affordable Florida teen auto insurance rates!

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