Auto insurance rates all over the United States have been increasing over the past few years. Florida is no exception, with auto insurance rates being almost double the national average. While there are some external factors that contribute to rising costs, there are some things the insured can do that may help lower their rates.
Reasons Rates are Increasing
Attorney Costs
Florida is a no-fault state, meaning that in the event of an accident, all parties must submit claims to their own insurance. This can increase the chance of involving an attorney. Insurance companies face higher fees and can pass these down to the policyholders.
Hurricane Costs
The geographic location of Florida can also impact rates. The state is much more likely to receive hurricanes that damage vehicles, compared to other states. This risk increases auto insurance rates in the event of a claim.
Influx of Tourists
In 2022, about 137.6 million people visited Florida, making it one of the most traveled states in the country. This high influx of tourists increases the amount of people on the roads. Accidents are more likely to happen with the busy traffic the state faces. Insurance companies raise rates to cover the higher rate of collisions.
Uninsured Drivers
In 2021, a study by the Insurance Research Council found that over 20% of drivers in Florida are uninsured. Getting into an accident with someone without insurance increases the cost for your insurance company, leading to higher premiums.
Ways to Lower Insurance Premiums
There are a few ways the insured can help keep their auto insurance premiums low, regardless of where they live and their age.
Bundle and Save
Bundling your home and auto insurance policies can save you money when you have coverage with the same insurance provider.
Practice Safe Driving
Practicing safe driving can help keep your premiums low. If you have a clean driving record, you may qualify for safe driver discounts.
This could save you between 10% and 25% of your premium.
Raise Your Deductible
Raising your deductible on your auto insurance to an amount you are comfortable paying will lower the amount your insurance company must pay in the event of a claim.
Talk with Pine Street Insurance Services Agents
Pine Street Insurance Services agents are dedicated to finding you the best rates for your auto insurance. Call or email us to get a quote from any of our A-rated 35+ carriers on auto and supplemental insurance.
