Florida still has no-fault auto insurance – at least for the moment. However, just because Florida has a no-fault auto insurance system, that does not mean that outside factors do not influence how much people pay for insurance. From credit score to type of car, to the neighborhood where you live we’re going to look at some factors that affect car insurance rates.
1. Driving record. Even with no-fault insurance, your driving record matters. A history of tickets, accidents, suspended license, or DUI can send your insurance rates soaring.
2. Address. A neighborhood with a large number of property crimes will have overall higher insurance rates than a neighborhood with a lower rate of property crimes per capita. Some ways to mitigate higher rates in high crime neighborhoods are to have a secured off-street parking place for your car and security measures such as cameras in place.
3. Daily miles driven. Insurance is less about you then it is about the other guy. You know the other guy – one who texts and drives, passes on the right, tailgates, and probably has insane insurance premiums. The more miles that you drive in a given day, the bigger the chance of encountering the other guy and needing to file a claim immediately thereafter.
4. Gender and age can be one of the biggest factors that affect car insurance rates. Single men under 25 can expect high premiums, while married people (especially those with children and minivans) tend to get much lower rates. The more years of good driving under your belt, the lower the premiums you will pay.
5. Vehicle type, make, and model. Of course, a working Chevy pickup or Mom’s Nissan minivan is going to have a lower premium than a Dodge Challenger muscle car.
6. Deductible. The higher the deductible, the lower the payment. This is where you can save money in the short term, only to end up paying out a big chunk of cash all at once later.
7. The number of licensed drivers in the household. It doesn’t matter if the drivers are on your insurance policy or not. If there are a number of licensed drivers in the household, will pay a higher premium simply because there is a bigger chance that one will be driving your car. Undeclared drivers can even cause your policy to be revoked.
8. Claims history. It should go without saying that having more claims in your history will raise your rate. Insurance companies carefully scrutinize any and all claims in your past that would give them a clue as to how you might drive your car tomorrow. Even though Florida’s no-fault system is still in place, a long claims history is a red flag that insurers will not ignore.
One of the Biggest Factors That Affect Car Insurance Rates: Your Insurance Agent!
Even if you don’t have the best driving record, you are definitely not alone! Talking with independent insurance agent E&L insurance is a great way to find out how to bring your premiums down. Call today and let us help you with your coverage so that every part of your life is protected from the unexpected.