The words "cheap" and "insurance" probably shouldn't be used together, especially when searching for the cheapest auto insurance for welfare recipients. Because it's so expensive, let's start off by going over a few of the things that determine auto insurance rates, and find some ways to lower the cost of your next policy.
The type of vehicle you are insuring is one of the biggest factors when comparison shopping for low-cost coverage for welfare recipients. Vehicles with higher performance, poor safety features, or a track record of large liability claims will cost much more to insure than safer models. The list below shows coverage premiums for some of the most economical vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$1,228|
|Honda CR-V EX-L 2WD||$1,420|
|Ford Edge SE AWD||$1,428|
|Ford Focus SE 4-Dr Sedan||$1,438|
|Toyota RAV4 Limited 4WD||$1,455|
|Jeep Wrangler Sahara 4WD 2-Dr||$1,503|
|Dodge Grand Caravan CV||$1,509|
|Ford F-150 XLT Crew Cab 2WD||$1,503|
|Honda Civic LX 4-Dr Sedan||$1,505|
|Toyota Corolla XLE||$1,533|
|Nissan Rogue S 2WD||$1,558|
|Kia Optima LX||$1,565|
|Start Your Quote Go|
Table data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Florida minimum liability limits. Discounts applied include safe-driver, multi-vehicle, homeowner, multi-policy, and claim-free. Information does not factor in the specific area where the vehicle is garaged which can influence auto insurance rates significantly.
Based upon the table data, models like the Ford Escape, Toyota Prius, Honda CR-V, Ford Edge, and Ford Focus are likely to be a few of the cheaper vehicles to insure for drivers on welfare.
For drivers on welfare, one of the largest things that are used to help calculate the price you pay for insurance is your zip code. Regions with larger populations or more claims like Hialeah, Miami, and West Palm Beach tend to have more expensive auto insurance rates, whereas areas that tend to be more rural benefit from lower rates.
The next table shows the priciest cities in Florida for welfare recipients to purchase a policy in.
|5||West Palm Beach||$2,705|
|19||Port St. Lucie||$1,975|
|Find Cheaper Insurance Go|
Rate quotes are comparative as the specific zip code location can modify prices greatly.
Difference between full coverage and liability only rates
Paying a lower price for car insurance is the goal of the majority of vehicle owners, and one of the easiest ways to find cheaper insurance for welfare recipients in Florida is to not buy comprehensive and collision coverage. The diagram below shows the comparison of annual premium costs with full coverage compared to only the Florida minimum liability coverage. The data assumes no tickets, no at-fault accidents, $500 deductibles, single status, and no discounts are factored in.
Averaged for all ages 20 through 70, physical damage insurance costs $2,660 per year more than carrying just liability coverage. That touches on the question when is it safe to stop buying full coverage. There isn't a written rule for eliminating physical damage coverage, but there is a general convention. If the yearly cost for physical damage coverage is about 10% or more of the replacement cost minus the deductible, then you may need to consider dropping full coverage.
For example, let's assume your vehicle's claim settlement value is $10,500 and you have $1,000 deductibles. If your vehicle is destroyed, the most you would get paid by your company is $9,500 after paying your deductible. If you are paying more than $950 a year for physical damage coverage, then it could be time to drop full coverage.
There are some cases where dropping full coverage is not recommended. If you still have a lienholder on your title, you are required to maintain full coverage to protect the lienholder's interest in the vehicle. Also, if you cannot afford to purchase a different vehicle in case of an accident, you should not remove full coverage.
Discounts on Florida car insurance
Insurers that offer cheap quotes for welfare recipients may also provide policy discounts that may potentially lower prices by 35% or more if you qualify for them. Large car insurance companies and their offered discounts are detailed below.
- Farm Bureau includes discounts for multi-policy, 55 and retired, youthful driver, driver training, good student, renewal discount, and multi-vehicle.
- MetLife offers discounts including accident-free, claim-free, good driver, defensive driver, and good student.
- Progressive has savings for continuous coverage, online signing, multi-vehicle, good student, and homeowner.
- AAA may offer discounts for education and occupation, good student, multi-policy, pay-in-full, anti-theft, multi-car, and AAA membership discount.
- American Family discounts include accident-free, air bags, defensive driver, good driver, and early bird.
- GEICO may have discounts that include emergency military deployment, multi-policy, federal employee, anti-lock brakes, five-year accident-free, and good student.
- State Farm offers discounts for passive restraint, safe vehicle, good driver, Drive Safe & Save, good student, student away at school, and accident-free.
The diagram below illustrates the difference between insurance costs with and without some available policy discounts. The rate quotes are based on a female driver, no violations or accidents, Florida state minimum liability limits, full coverage, and $250 deductibles.
The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with homeowner, multiple vehicle, safe-driver, defensive driving course, claim-free, and anti-theft discounts applied. When drivers take advantage of discounts, the average amount saved each year on car insurance for welfare recipients is 28% or $633.
How to find economical car insurance for welfare recipients in Florida
Below you'll find a few thrifty suggestions that can help Florida drivers locate more affordable coverage.
- Drivers with good credit ratings often pay less
- Drop full coverage on older vehicles
- Buy a vehicle with excellent safety ratings
- Buying your home and auto policies from the same company can earn a discount
- Having at-fault accidents will increase rates
- Compare rates once a year for cheaper prices
The final tip is certainly important, as was discussed in this write-up. Coverage prices fluctuate constantly, so don't be hesitant to change insurance companies if you find a better deal.
Being loyal to a particular company is commendable, but is isn't recommended if that stubbornness costs you money that could be going to better use. Now is a great time to shop around to find cheaper insurance for welfare recipients.