Lowering Florida Auto Insurance: Tips To Reduce Your Premium

Florida is known for its high car insurance rates, with vehicle owners paying an average of $1,343 annually for basic auto insurance. However, there are several strategies that Floridians can employ to reduce their insurance premiums. Firstly, it is essential to maintain a good driving record by avoiding tickets and accidents, as even a speeding ticket can increase insurance rates by up to 28%. Taking a driver improvement course after receiving a ticket can help prevent an insurance rate hike. Additionally, it is beneficial to shop around and compare rates from multiple insurance companies, as rates can vary significantly. Floridians should also inquire about available discounts, such as bundling home and auto insurance or having safety features in their vehicles. Adjusting deductibles, reducing coverage on older cars, and maintaining a good credit record are other effective ways to lower insurance costs.

Compare insurance costs before buying a car

When it comes to buying a car, it's important to consider the total cost of ownership, which includes insurance costs. Here are some tips to help you compare insurance costs before making your purchase:

Narrow Down Your Vehicle Selection

With the numerous makes and models available, it's impractical to get an insurance estimate for every vehicle. Instead, select your top two or three choices based on your budget, desired features, and lifestyle. Keep in mind that certain characteristics of the car may increase or decrease your insurance costs. Factors that can impact your insurance rate include the vehicle's price, repair costs, age, make and model, body type, safety features, and anti-theft features.

Estimate the Coverage You Need

At a minimum, you need to purchase enough coverage to meet your state's insurance requirements. However, this may not be sufficient to protect you financially in the event of a severe accident. Consider purchasing coverage that is at least equal to your assets to safeguard yourself from potential lawsuits. Additionally, consider optional coverages such as collision and comprehensive insurance, especially if you have a newer vehicle or if your lender requires them.

Get Quotes from Multiple Insurers

Insurance companies use different formulas to calculate rates, so pricing can vary significantly. It's crucial to shop around and get quotes from multiple insurers to find the most affordable option. You can gather pricing information online, over the phone, or in person from insurers, captive agents, or brokers. Remember to compare identical policy coverage and limits to ensure an accurate comparison.

Choosing the Right Deductible

The deductible is the amount you must pay before the insurance company covers the rest of a covered loss. When selecting your deductible, choose an amount that you can comfortably afford to pay if you need to file a claim. Typically, policies with higher deductibles come with lower premiums.

Compare Insurance Rates

When evaluating insurance rates, ensure that you are comparing policies with the same limits and deductibles to get an accurate quote. Provide detailed information about the drivers and the vehicle, including driver's license numbers, vehicle make and model, vehicle identification number (VIN), and the expected number of miles driven per year.

Find Ways to Save on Insurance

Take advantage of car insurance discounts offered by insurers. Common discounts include good student discounts, multi-policy discounts for insuring multiple types of vehicles, and multi-car discounts for insuring multiple vehicles with the same company. Additionally, maintaining a good driving record, improving your credit score, and bundling insurance policies can also help lower your insurance costs.

Ask for higher deductibles

When it comes to auto insurance, a deductible is the amount you pay out of pocket before your insurance policy kicks in. In other words, it is the amount you pay towards the cost of repairs before your insurance company covers the rest. For example, if you have a $3,000 repair and a $1,000 deductible, you will pay $1,000 and your insurance company will pay the remaining $2,000.

Most drivers in Florida opt for a $500 deductible, but policies with higher deductibles tend to be cheaper overall. While a higher deductible means you pay more out of pocket when filing a claim, it also means you pay lower monthly premiums. For instance, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage costs by 15-30%. Going even higher, to a $1,000 deductible, can save you 40% or more.

When selecting a deductible amount, it is important to consider your financial situation and your tolerance for risk. A higher deductible means lower monthly costs, but if you do need to file a claim, you will pay more out of pocket. Therefore, it is recommended that you have enough money set aside to cover the deductible in case of an accident. Additionally, consider your driving history and the likelihood of filing a claim. If you have a history of accidents or frequently drive on busy roads, you may be more likely to file a claim and pay a deductible.

In summary, requesting a higher deductible is a straightforward way to lower your auto insurance costs in Florida. By increasing your deductible, you can reduce your collision and comprehensive coverage costs, but be sure to weigh the potential savings against the risk of having to pay more in the event of a claim.

Reduce coverage on older cars

Florida's car insurance rates are among the highest in the country, with vehicle owners paying an average of $1,343 annually for basic auto insurance. With a potential increase in 2023, it's important to be mindful of ways to reduce your premiums. One way to do this is to reduce coverage on older cars.

As a car gets older, the cost of insurance drops slowly, but the value of the car drops quickly. For example, you could be paying $2,000 per year to insure a 10-year-old car that's worth $6,000. In this case, the cost of insurance represents 46% of the value of the car. After an accident, the rates are likely to exceed the value of the car.

Full coverage car insurance is likely a poor investment for vehicles over 10 years old. After this period, the cost of insurance is close to, if not more than, the value of the car. It may be more economical to pay for a newer car out of pocket than to commit to higher future insurance rates after an accident.

If your car is older and not worth much, you may want to avoid comprehensive and collision coverage. Comprehensive coverage is usually not required by states, and whether you need it depends on the value of your vehicle. If your car is worth less than 10 times the premium, purchasing comprehensive coverage may not be cost-effective. You can check the worth of your car online at Kelley's Blue Book.

Liability insurance, which is required in each state, tends to be much cheaper than a full-coverage insurance policy. It covers damages to another driver's vehicle if you are at fault in an accident. Other types of insurance that a full-coverage policy may cover include uninsured motorist coverage, medical payments coverage, and collision coverage.

Before choosing to reduce your coverage, make sure you have enough money set aside to pay for repairs or a new car if you are in an accident.

Take a defensive driving course

One of the best ways to lower your auto insurance costs is to take a defensive driving course. Not only will you improve your driving skills, but you'll also be rewarded with lower insurance premiums.

In Florida, you can choose from a range of approved defensive driving courses, including online, classroom, or DVD formats. These courses are designed to enhance your safe driving techniques and cover topics such as defensive driving techniques, alcohol and drug abuse violations, Florida traffic laws, and sharing the road with other road users.

The basic defensive driving course in Florida is known as the four-hour BDI (Basic Driver Improvement) course. It is approved by the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) and can be completed at your own pace. The course costs around $30-$40, and upon successful completion, you'll receive a certificate of completion. This certificate can be submitted to your insurance provider to receive a discount on your auto insurance premium. According to state law, you'll be entitled to up to a 10% premium reduction for three years, as long as you maintain a good driving record.

If you're 55 or older, you can also take a mature driver program, which is tailored to the unique needs of senior citizens. These courses are screened by the Department of Highway Safety and Motor Vehicles, and you'll be required to pass a written test to evaluate your understanding. Successful completion of these courses can also result in savings on your auto insurance premium.

Defensive driving courses not only improve your driving skills but also help reduce points on your driving record. In Florida, common traffic infractions, such as reckless driving, speeding, and failing to obey traffic signals, come with a point value. Accumulating too many points can lead to a suspended license and higher insurance rates. By taking a defensive driving course, you can reduce these points, retain your driving privileges, and maintain a lower insurance rate.

Remember to check with your insurance carrier if they offer an insurance reduction based on completing a defensive driving course. The discount is usually offered at the insurer's discretion, and there may be specific requirements and restrictions.

Ask about group insurance

One of the ways to lower your auto insurance costs is to ask about group insurance. Some companies offer discounts to drivers who are part of a group plan. This could be through their employers, or through professional, business, or alumni groups. You can also check with other associations you are a member of to see if they offer group insurance plans.

Group insurance plans can provide a reduction in your insurance costs. It is worth asking your employer if they offer group insurance, and what the potential savings could be. Similarly, if you are a member of any professional, business, or alumni groups, get in touch with them to find out if they offer group insurance plans and what the potential savings are.

It is also worth noting that some insurance companies offer group discounts to certain associations. For example, Liberty Mutual offers group discounts to members of specific associations, such as employers, schools, or professional associations. Therefore, it is beneficial to research and inquire about potential group insurance plans that you can join to reduce your auto insurance costs.

By taking advantage of group insurance, you can benefit from the collective purchasing power of the group. This can result in lower insurance rates and additional benefits that may not be available to individual policyholders. Group insurance plans are often tailored to the specific needs of the group members, so you can be sure that the coverage meets your requirements.

In summary, asking about group insurance is a great way to potentially lower your auto insurance costs in Florida. Be sure to inquire with your employer, professional associations, and other groups you are a part of to explore the options available to you.

Frequently asked questions