Why is your auto insurance expensive in Florida?

Insurance rates can be high in Florida for many reasons.  In this post you will get an idea of what some of those reasons are.  Florida insurance rates are determined by many factors including location, age, gender, your driving record, credit and claims history.  Florida also has a mandatory PIP law in place.  This means that you must purchase personal injury protection coverage if you have a vehicle registered in Florida.  The State of Florida is home to some of the highest rates of auto insurance fraud in the nation.  High rates of insurance fraud can make your insurance expensive because it forces insurance companies to increase premiums.  Our agency has many low cost options available and can answer any questions you have.  If you want to know why your insurance rates are expensive, and want us to take a look at your policy please feel free to give us a call.

 Things that can make your insurance expensive in Florida…

1. Your driving record – Insurance rates are based heavily on your driving record for the preceding three years.  This includes any tickets, accidents and suspensions.  Some violations like careless or reckless driving carry more points and are worse than a minor speeding ticket.  Speeding tickets that are more than 15 mph over the posted speed limit are also considered “major” violations.
2. Your claims history – Your insurance rate can be higher if you have prior claims on your record.  Just like driving records some claims are worse than others and can increase your rate more.  At-fault accidents are typically the claims that increase your rate the most while comprehensive claims below $1000 only increase the rate slightly.
3. Your location – Insurance rates vary greatly based on location.  Individuals that live in larger cities typically have a higher rate.  Insurance premiums are higher in bigger cities because there is more traffic, and more traffic means more accidents.
4. Your credit history – Insurance companies do charge a higher rate to individuals that have bad credit.  Research has shown that people with bad credit are more likely to have an accident or claim.
5. Your prior insurance – Insurance companies do give a discount to individuals that have prior insurance.  Most insurance companies also charge more if you do not have any prior insurance.  To get the prior insurance discount you must have a least six months of continuous coverage with your previous insurance carrier.
6. Your age – Youthful drivers under that age of 25 and older drivers over the age of 70 are charged more because they are considered “high risk.”

Some things you can do to lower the cost of your insurance in Florida…

1. Reject comprehensive and collision coverage – If you do not have a loan on your vehicle this coverage is not required.  In some cases by rejecting this coverage it can reduce your insurance rate drastically.  If your vehicle is financed, your lienholder will require you to have it.
2. Increase your deductibles – You can increase the deductibles on your comprehensive, collision and PIP coverage.  If your vehicle is financed, it is important that your check with your lienholder to find out the maximum deductible they will allow.
3. Reject uninsured motorist coverage – This coverage is not required by law and in some cases it can be expensive.
4. Reject bodily injury coverage – It is not recommended that you reject this coverage.  We only recommend that you reject this coverage if you simply can not afford it.

Why choose us for your Florida Insurance?

We are an independent insurance agency that provides insurance all across the State of Florida.  Independent insurance agencies are contracted with many major insurance carriers, allowing us to provide some of the best rates on the market.  We utilize the most advanced technology available to service our customers.  You can request a quote and purchase your insurance from any computer or smartphone.  Our company has offices in Jacksonville, Miami, Fort Lauderdale, Orlando and Port St. Lucie and can provide insurance no matter where you live in Florida via the internet.