Florida Auto Insurance: Save Money, Know The Tricks

Florida is one of the most expensive states for car insurance, with drivers paying nearly 40% more than the national average. However, there are several ways to save on auto insurance in Florida. Maintaining a clean driving record is one of the best ways to keep insurance rates low, as safe drivers are less likely to file claims. Taking a driving improvement course can also help reduce rates, especially after getting a ticket. Additionally, drivers can save by increasing their deductible, bundling insurance policies, taking advantage of discounts, and choosing a vehicle with safety features. Shopping around for quotes from different insurance companies and reviewing coverage annually can also help lower costs.

Raise your deductible

Raising your deductible is a great way to save on auto insurance in Florida. A deductible is the amount you pay out of pocket before your insurance coverage kicks in. For example, if your car sustains $1500 worth of damage, and your deductible is $500, you will pay the first $500, and your insurance company will cover the remaining $1000.

The benefit of raising your deductible is that it will result in lower premium costs. If you don't drive too often and are a safe driver, you are less likely to get into accidents or sustain vehicle damage. In this case, raising your deductible could be a good idea, as you will be paying lower premiums.

However, it is important to ensure that you have enough savings to cover the higher deductible in case of a claim. You should only consider raising your deductible if you have the cash in the bank to cover unexpected expenses. If you have a stable financial situation and a good driving record, a higher deductible might be a good idea.

The most common deductible amounts are $250, $500, and $1000, but they can go as high as $2500. Typically, raising your deductible from $500 to $1000 may lower your insurance rate by around 10%. This could save you hundreds of dollars a year.

If you are considering raising your deductible, make sure to check with your finance company, as they may not allow you to have a deductible higher than a certain amount. Additionally, if you rent a car, the rental company may have a limit on the highest deductible amount they accept.

In summary, raising your deductible can be a great way to save on auto insurance in Florida, but it is important to ensure that you have the financial means to cover the higher deductible if needed.

Drop collision coverage

Dropping collision coverage can help you save on your insurance premiums, but it can also cost you if you're in an accident. Collision coverage can help pay for repairs if your car is damaged in a crash with another car or a stationary object, such as a retaining wall or guard rail. Without it, you may have to pay for these repairs out of pocket.

When deciding whether to drop collision coverage, it's important to consider the value of your vehicle. If your car is relatively new, the value of your vehicle is likely significantly more than what you'd pay for your premium and deductible, so maintaining coverage is probably worth it. On the other hand, if your car is worth less than a few thousand dollars, collision coverage may not be worth carrying, especially if you have a high deductible. For example, if your car is worth $2,000 and your deductible is $1,000, your insurance is only able to pay out up to $1,000 on a collision claim.

Another factor to consider is whether you can afford to pay for repairs if you're in an accident. Even if your car isn't worth a lot, you may want to keep collision coverage if you wouldn't be able to pay for repairs. However, if you can afford to pay for damages out of pocket and your car isn't worth much, you might not need collision coverage.

Additionally, if you're still paying off an auto loan or leasing your vehicle, you typically need to keep collision coverage. Lenders and leasing companies usually require it to protect their interest in the vehicle. But if your vehicle is paid off, you have the option to drop collision coverage.

Ultimately, the decision to drop collision coverage depends on your individual circumstances, including the value of your car, your financial situation, and whether you have a loan or lease.

Update your address

Updating your address is an important step in ensuring you are not overpaying for your auto insurance in Florida. If your insurer has the wrong address, town, or zip code on your policy, you could be paying more than you should. This is because your address is one of the factors that influence the cost of your insurance.

Your address is important because it determines where you will be driving and parking your car. The area where you live and park your car can increase or decrease the cost of your insurance policy. If your area has a high number of crimes and claims to file, you will get higher insurance. Conversely, if you live in a low-crime area, you will likely pay less for insurance.

Additionally, if you usually park on the street, you could pay more for auto insurance than if you park in a secured garage or driveway. If you park your car in a secure parking lot or garage at your new address, updating this information with your insurance company could result in lower rates for you. You can get an even better deal if your garage has safety features like an alarm system or security cameras.

It is also important to update your address to ensure that your insurance coverage is valid. Each state has its own laws and requirements for car insurance coverage, so your current policy may not be valid in your new state. For example, if you moved to another state but kept your Florida tag and registration, you must register your vehicle in your new state of residence. For a vehicle to maintain a Florida registration, it must be insured in Florida unless you are an active-duty military member (including a spouse or dependent) and are currently stationed in another state.

Most insurance companies give policyholders up to 30 days to update their address after moving. You can usually update your address online or by calling a customer service representative.

Look for discounts

Discounts are a great way to save on auto insurance in Florida. Here are some tips on how to maximize your savings by looking for discounts:

Combine Different Discounts

Different types of discounts are available for drivers in Florida, and these can be combined to reduce the total policy amount. These discounts are typically based on the driver's profile, their experience, and their age. For example, students with good grades can often get a discount on their car insurance. Additionally, drivers over 55 who take an HSMV course may also be eligible for a discount.

Bundle Different Insurance Types

You may be able to get a discount by bundling your auto insurance with other types of insurance, such as homeowners or renters insurance. Some insurance companies offer loyalty discounts to customers who purchase multiple types of insurance through them. This is often referred to as "multi-policy" or "multi-line" discounting.

Vehicle Safety Features

If your car has certain safety features, such as anti-lock brakes, airbags, or an alarm system, you may be eligible for a discount on your auto insurance. Be sure to inform your insurance agent about any safety features your car has so that you can take advantage of any applicable discounts.

Driver's Education Course

Completing a driver's education course can help lower your insurance rates, especially if you are a new or young driver. Insurance companies often offer discounts to drivers who have completed these courses, as it demonstrates a commitment to safe driving.

Good Driving Record

Maintaining a clean driving record is one of the best ways to keep your auto insurance rates low. Accidents and traffic violations can cause your insurance rates to increase significantly. Safe drivers are considered lower-risk and are therefore rewarded with lower insurance rates.

Electric Vehicle Discount

If you drive an electric vehicle, you may be eligible for a discount on your auto insurance. Some insurance companies offer this discount to encourage the use of environmentally-friendly vehicles.

Remember to reach out to your insurance agent or company to inquire about any discounts you may be eligible for. They can advise you on the specific discounts offered and how to take advantage of them.

Combine policies

Combining policies is a great way to save on auto insurance in Florida. By purchasing multiple insurance policies from the same broker, you can benefit from significant savings on your premiums. This strategy, known as "bundling," allows you to streamline your insurance and keep all your policies in one place, making it easier to manage and pay for your coverage.

When you combine policies, you can often find savings by purchasing your homeowners, auto, life, and other types of insurance from a single company. This approach is often rewarded by insurance providers, who offer lower rates to customers who choose to meet all their insurance needs through their company. By consolidating your insurance needs, you become a more valuable customer to the insurance company, which can result in competitive rates and discounts.

For example, State Farm offers bundling options that can save you up to $1,273 on auto and home insurance combined. They also offer additional savings if you add renters or life insurance policies to your bundle. Similarly, Progressive offers savings of over 20% on average when customers bundle their home and auto insurance policies with them. These savings can make a significant difference in your overall insurance costs.

To find the best deals, you can reach out to insurance agents and ask for quotes on bundled policies. They can guide you through the process and help you understand the specific discounts and benefits offered by each company. By shopping around and comparing rates, you can identify the combination of policies and the insurance provider that best meets your needs and budget.

By combining policies, you not only save money but also simplify your insurance management. With all your policies in one place, you can easily access and manage them through a single app or online account, making it more convenient to stay on top of your insurance coverage.

Frequently asked questions