Since car insurance rates vary state to state, some drivers begin to wonder my they seem to pay a significant amount more than drivers in neighboring states. While auto insurance requirements vary per state, this isn’t as large of an influence on car insurance premiums as you may think. There are reasons drivers in certain areas pay more for auto insurance, though—including drivers in Florida.
Unpredictable Weather
One of the biggest dangers for drivers, homeowners and business owners in Florida is the weather. The state often has unpredictable storms and heavy rainfall that can cause a significant amount of damage in a short amount of time. Of course, insurers who cover Florida understand this risk and account for it in their prices. The more likely you are to file a claim, the more you may pay for car insurance. Since there is nothing you can do to control Florida’s wild weather, you may pay more for car insurance to cover the possible damage related to hurricanes, hail, flooding and more.
Uninsured Drivers
Florida has one of the highest rates of uninsured drivers in the United States. This, unfortunately, brings up the price of auto insurance, as your premiums once again relate to your risk level. The more likely you are to be involved in an accident with an uninsured driver, the more you may be expected to pay for car insurance. This also ties into the fact that Florida is a no-fault state when it comes to car accidents. This means that, no matter who caused the accident, each driver will be expected to cover the damages and injuries they or their passengers sustain. Since you are less likely to receive compensation from another driver as you might in a fault state, you may need higher limits of certain areas of auto insurance.
Elderly Drivers and Tourists
One of the other factors influencing car insurance rates in Florida is the traffic and who is out on the roadways. Florida has a large number of retirees and elderly citizens, who may run a higher risk of accidents. Having tourists also means more traffic on the roads. Certain areas of Florida are also heavy with college students. Drivers under the age of 25 and over the age of 65 generally have the highest number of car insurance claims, which can drive up the general price of auto insurance in your area.
Personal Factors Affecting Your Florida Auto Insurance Rates
Aside from your state, there are other factors that may be influencing how much you pay for car insurance in Florida. It is important to keep track of the personal factors influencing your car insurance rates so that you can work on saving money where you can. While you can’t change the aspects of the state you live in, you can adjust several personal factors.
Driving Record
Your driving record has perhaps the biggest influence on your car insurance rates. If you have a history of accidents, you may see a rise in your car insurance rates. This is why you tend to pay more right after an accident. Also keep in mind that claims and accidents can remain on your policy for three to five years or even more, depending on the severity of the accident. This means that one accident can mean higher premiums for three to five years after the accident.
Age
The age of a driver can also affect the cost of their car insurance. Younger drivers generally pay more for car insurance as they are statistically more likely to be involved in accidents. Drivers may see a decrease in their car insurance premiums around the age of 25, however.
Credit Score
Your credit score is an example of how reliable you may be in paying car insurance premiums in full and on time. If you have a low credit score, you may pay more for car insurance to offset the insurer’s risk. You can build your credit by paying off credit cards and other debts.
Aspects of the Vehicle
Of course, what car you choose can heavily impact how much you pay to insure it. Buying a new car or a car built for speed can be tempting, but you must be prepared to spend more for auto insurance than you would for an older or slower vehicle. Rates can also change depending on the safety rating of the vehicle. A higher safety rating can lead to less injuries in an accident, which also means lower insurance rates.
Be sure to speak with your insurance agent about saving money on your car insurance through qualifying discounts.
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