It’s hard to miss the skyrocketing costs of homeowners insurance, but has anyone else noticed the cost of auto insurance rising as well?
MarketWatch recently did a study on Florida auto insurance and found that “the average premium for a full-coverage auto insurance policy in Florida jumped 10.1% in 2023.” A number of factors have contributed to this rise, including uninsured motorists (some speculate they may account for as much as 20% of all drivers) and an increase in car thefts.
Wondering how Florida stacks up against the rest of the country? According to the study, it is currently the second most expensive state for full auto coverage (which typically costs $3,244 per year) and the most expensive one for minimum coverage (costing around $1,345 per year).
Other major factors affecting Florida auto premiums are:
- Litigation environment: The state is notorious for the high number of legal claims related to auto accidents.
- Weather-related risks: Florida is prone to hurricanes and flooding, which can increase the risk of vehicle damage and lead to higher premiums.
- PIP coverage requirements: Florida requires drivers to carry personal injury protection (PIP) insurance, which can be costly. PIP covers medical expenses for you and your passengers regardless of who is at fault in an accident.
Curious what you can do to reduce your auto insurance premiums? Here are a few suggestions.
Increase your deductibles: By opting for a higher deductible, you can lower your monthly premiums. Just make sure you can afford the deductible if you need to make a claim.
Bundle policies: Many insurers offer discounts if you bundle multiple policies with them, such as auto and home insurance.
Maintain a clean driving record: Avoiding traffic violations and accidents can help you maintain a lower insurance rate. Safe driving often leads to discounts or lower premiums.
Take advantage of discounts: Insurance companies offer various discounts, such as:
- Good driver discounts (for maintaining a clean driving record)
- Good student discounts (for students with good grades)
- Low mileage discounts (for driving fewer miles than the average)
- Safety feature discounts (for cars equipped with safety features, such as anti-lock brakes or airbags)
Improve your credit score: In many states, including Florida, insurers use credit scores to determine premiums. Improving your credit score can help lower your rates.
Choose the right vehicle: The type of car you drive affects your insurance rate. Generally, vehicles with high safety ratings and lower repair costs are cheaper to insure.
Fortunately, I have a couple more years before my daughter starts to drive. However, as anyone with a teenage driver in the house can tell you, the premiums for them are also incredibly high in the state of Florida. Since teens have less driving experience and are statistically more prone to accidents, insurers raise premiums to offset these risks.
While adding a teenager to your policy can be expensive, employing these strategies can help you manage and potentially reduce the associated costs.
Good student discounts: Many insurers offer discounts for students with good grades. Encourage your teen to maintain good academic performance.
Defensive driving courses: Some insurers offer discounts for completing defensive driving courses, which can help your teen become a safer driver.
A safer car: Adding your teen to a vehicle with high safety ratings and lower repair costs can help reduce premiums.
Telematics programs: Some insurers offer usage-based insurance, or telematics programs that monitor driving behavior. Safe driving habits can lead to discounts.
Additional coverage options: You can explore different coverage options or adjust deductibles to find a balance that works for your budget.
Shopping around: Get quotes from multiple insurance companies to find the best rate for adding a teen driver. Some insurers specialize in offering competitive rates for young drivers.
