10 Cheapest Cities for Car Insurance in Florida

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by Quiana Darden Updated June 16th, 2022
streets in gainesville florida

 

If you’re considering relocating in Florida and haven’t decided just where you want to settle down, you might want to take a moment to consider car insurance rates. Car insurance costs vary throughout Florida and insurance is significantly cheaper in certain cities. Before you start looking for a home or a rental, you might want to consider focusing your search on these 10 cheapest cities for car insurance in Florida.

Gainesville 

Gainesville, Florida has a population of 132,127, and the median age is 26.3. This low median age means the city is home to fewer senior drivers, who tend to have higher car insurance premiums. 


While Gainesville is a large city, the median household income is just $37,264. With this lower average income, the majority of residents likely own vehicles that hold less value, meaning they’re less expensive to repair or replace in an accident, so insurance premiums will be lower. 

The average Gainesville commute is just 18.3 minutes, which is less than the normal 25.5 average commute for the United States worker. With less time on the road, there’s a reduced chance of getting into a car accident, so insurance companies may lower rates for Gainesville residents.

Average Monthly Premium: $85

Panama City

Panama City’s 2019 population was 182,161, while the median age was 39.8. This larger city has a median household income of $54,316, meaning most households likely didn’t purchase very expensive cars. With more economical cars being less expensive to repair and replace, many households would see lower car insurance premiums. 

Panama City households have an average of two cars, which is in line with the national average. They also have an average 23.1-minute commute to work, which is slightly less than the 25.5 minute national average, and might earn some homes a discount on car insurance. Additionally, 4.05% of residents worked at home in 2019, possibly making them eligible for a low mileage discount. 

Average Monthly Premium: $86

Punta Gorda 

In 2019, Punta Gorda’s population was 181,067, making it a smaller city. The median age was 59.1, and the median household income was $51,499. The lower household income means that many homes likely have affordably priced vehicles, and might even buy used vehicles, which are typically less expensive to insure than brand-new or more expensive vehicle models. 

Punta Gorda is also home to several universities, including the Charlotte Technical College. The students who graduate each year may get lower insurance rates because they’ve earned a higher education degree. Additionally, Punta Gorda residents have a commute averaging just 22.6 minutes; the shorter commute may be reflected in additional discounts. 

Average Monthly Premium: $86

Sebring

Sebring, Florida is a smaller city with a population of just 103,437 as of 2019. This smaller population typically means less people on the road and fewer residents involved in car accidents, which can correlate with lower car insurance premiums. 

Sebring also has a relatively low median household income of $40,942. As a result, residents are less likely to buy expensive or brand-new vehicles that cost more to insure.

Several other factors contribute to Sebring’s low insurance rates. Average commute distances are just 19.6 minutes, significantly lower than the 25.5-minute national average. The South Florida State College is also in Sebring, meaning more residents are likely to have higher education degrees, which can also reduce their rates.

Average Monthly Premium: $86

Tallahassee 

With a population of 386,454, Tallahassee is a sizable city, but several factors contribute to its cheap car insurance rates. Tallahassee is home to Florida State University, Tallahassee Community College, and Florida Agricultural and Mechanical University, meaning many residents hold a college degree and potentially receive discounted car insurance rates. 

The median household income is $52,729, so residents are likely to buy used cars or affordably priced vehicles. Pairing that lower vehicle cost with the 21.2-minute average commute time means residents also spend less time on the road, so insurance companies may reduce their premiums.

Average Monthly Premium: $88

Venice 

Venice is a very small city with a 2019 population of just 23,086. It also has an unusually low poverty rate of 7.77%, meaning that crime is probably less common and cars are less likely to be broken into or stolen. 

Venice has a short average commute time of just 19.6 minutes. When you pair this shortened commute with the fact that the city is small so there are fewer cars on the road, it makes sense that Venice residents have low car insurance premiums. 

Average Monthly Premium: $89

Palm Coast 

Palm Coast’s 2019 population was just 85,933, making it one of the smaller cities in Florida. The city also enjoys a low poverty rate of 12.3%, which may reduce the crime rate and result in fewer stolen vehicles, meaning less risk for an insurance company. 

The 2019 median age in Palm Coast was 49.4, so most residents are beyond their teenage years when they’ll see high insurance premiums. The median household income was $54,360, so residents likely buy quality vehicles or used cars, but few homes have luxury vehicles, which are most expensive to insure. 

Average Monthly Premium: $89

Lake City

Lake City’s 2019 population was just 69,968, so it’s a relatively small city. The median age was 40.4, meaning most drivers aren’t in their teenage or senior years, when car insurance rates increase. The median household income was also just $46,494, so most households were unlikely to purchase luxury vehicles that would drive premiums up.

In 2019, the universities in Lake City awarded degrees to 1,035 graduates. The presence of universities like Florida Gateway College means that more residents likely hold higher education degrees, which indicates to many insurance companies that a driver is a lower risk to insure.

Average Monthly Premium: $89

Daytona Beach 

Daytona Beach had a population of 67,604 in 2019, and a median age of 40.6. That higher median age means that most drivers have entered the years when their car insurance premiums are reduced because of their age and driving history. 

The median household income was just $35,893, which is quite low compared to other cities. This means that many drivers probably bought more economical cars, which leads to less expensive auto insurance overall. 

Average Monthly Premium: $91

Port Orange 

With a population of just 62,726 in 2019, Port Orange is a smaller city with less traffic on the roads, which means reduced chances of drivers being in accidents. The city also has a low poverty rate of 14.9%, meaning there’s a decreased chance of vehicles being vandalized or stolen. Car insurance companies consider these factors and often offer reduced rates because of the lower risk. 

Additionally, drivers in Port Orange have a shorter-than-average commute time of 20.7 minutes, compared to the national average of 25.5 minutes. Plus, 6.05% of the population worked at home in 2019, further reducing the time they spent on the road. All of these factors likely contribute to lower insurance rates.

Average Monthly Premium: $91

Florida City Average Monthly Car Insurance Premium
Gainesville $85
Panama City $86
Punta Gorda $86
Sebring $86
Tallahassee $88
Venice $89
Palm Coast $89
Lake City $89
Daytona Beach $91
Port Orange $91

While these insurance premiums give you an idea of what you might expect to pay in these more affordable cities, if you want to know how much you’d pay, the best thing to do is get a quote.

Our auto insurance comparison tool will compare the rates of 65+ auto insurance companies in minutes.

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More Expensive Cities for Car Insurance in Florida

Now that we’ve identified the most affordable cities for car insurance in Florida, let’s look at those with more expensive average premiums.

Miami Gardens

In 2019, Miami Gardens had a population of 111,363, but it also had a higher poverty rate of 21%. That poverty rate means that there may be an increased chance of vehicle vandalism and theft, so insurance companies may decide to charge higher premiums. The median age is a bit young at 35.5, with many drivers still in their teenage years and paying higher car insurance rates, as a result. 

Miami Gardens also has an average commute time of 32.2 minutes, which is significantly longer than the average national commute time of 25.5 minutes. In addition to that longer commute, 3.26% of Miami Gardens workforce members have an extra-long commute of more than 90 minutes. These longer commutes mean Miami Gardens residents are spending longer than average times on the road, and they’re doing that five days per week on average. That increases their risk of being involved in an accident, and car insurance companies raise their rates to make up for that increased risk.

Average Monthly Premium: $153

Homestead

In 2019, Homestead’s population was just 68,438, making it a smaller city. While the area is small, it has a poverty rate of 23.8%, which often correlates with a higher crime rate and an increased chance of vehicle vandalism and theft.  Additionally, the median resident age is just 30.6, indicating that a large portion of the drivers are likely in their teens and early twenties, when they’re still paying higher car insurance rates by default. 

Homestead employees also have an average commute of 39.1 minutes, which is significantly longer than the national average of 25.5. Additionally, 11.7% of workers have commutes that are longer than 90 minutes. Car insurance companies tend to increase premiums because these drivers who spend more time on the road are considered higher risk. 

Average Monthly Premium: $160

Boynton Beach

Boynton Beach’s population in 2019 was just 76,832, However, its median household income was $57,563, and the median property value was $207,500. These higher values mean households likely had disposable income, and some households might purchase luxury vehicles, which cost more to insure than the typical economy car. 

Boynton Beach workers have a commute time of 24.8 minutes, which is about average. This means that drivers likely don’t receive discounts for spending minimal time on the road. 

Average Monthly Premium: $164

Hialeah

Hialeah is a larger city than most others on this list, with a 2019 population of 234,539. That higher population means there’s an increased risk of accidents, and that increased risk usually means higher car insurance premiums. 

Additionally, Hialeah has a poverty rate of 22.4%. That higher rate can correlate with a higher crime rate, so drivers in the area may have an increased risk of having their vehicles vandalized or stolen. It’s likely that insurance companies charge higher premiums because of these factors.

Average Monthly Premium: $167

Tampa

Tampa’s 2019 population was 399,690, making it a larger, busier city with more vehicles on the road. That means there’s a greater chance of residents getting into car accidents and filing a claim. 

Additionally, the median property value in Tampa is $265,700, and the median household income is $57,709. These higher numbers mean many drivers likely have the ability to purchase more expensive or luxury vehicles, which cost insurance companies more to repair or replace. Insurance companies charge higher premiums to protect themselves against this increased risk.

Average Monthly Premium: $172

Florida City Average Monthly Car Insurance Premium
Miami Gardens $153
Homestead $160
Boynton Beach $164
Hialeah $167
Tampa $172

If you live in one of these 5 cities, you can expect to pay more for your auto insurance than other areas, so it’s crucial that you search for the best rate. We help drivers who use our auto insurance comparison tool save an average of $720/year on their premium. Will you be next?

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