Florida – Factors that Affect Auto Insurance Rates


Trying to find the best insurance rates can be a daunting task. After awhile it all seems to blend together and you’re really not sure if you are actually getting a good deal or not. And sometimes, you won’t know until it is too late. You shouldn’t sacrifice coverage because the rates are too high. So what exactly determines the costs of auto insurance in the state of Florida?

To begin with, you should always find out ahead of time what method your carrier uses to determine the value of your car if it is totaled in an accident. Being beyond repair, an insurance company will figure out what your car is worth in one of three ways: researching the market value, going through quotes from vendors, or the traditional “Blue Book.” If your insurance company is unable to replace your vehicle from a nearby source, you may pay in the long run if the car is supplied from a surrounding area. Anything extra will ultimately add to your bottom line.

In the state of Florida, the insurance company is required to pay the sales tax on the vehicle that is replacing the one that was totaled. The tax is based on the value of the car before the accident so if you choose to get a more expensive car, the company is only required to pay what the taxes would have been and they will charge you the difference.

When you are changing insurance companies, make sure that you notify your existing company so that they do not cancel your policy themselves. Showing any lapse in coverage creates higher rates. And in Florida, if your vehicle is still being financed, you must show the mandatory liability coverage of the financial institution will get it for you and charge you in addition to your regular car payments.

If you are in the market for a new car and you can’t decide between two different vehicles, call your insurance agent and get a quote on both cars. The insurance industry has a rating gauge for vehicles that ranges from 3 to 27. This is industry specific information and not available to the general public, but you may be able to see a substantial difference between the two quotes.

If you have a teenager in the household who will be coming of age soon, help keep their rates down by following all of the steps towards a valid drivers license. From the time they are 15 years of age, the teen can take a driver’s education course to get their Driving Eligibility Certificate. Once they pass the written and vision test they can obtain a learners permit. After a full year of driving experience with a licensed parent or guardian, they can get their drivers license when they are at least 16 years of age.

Even though Florida has different rates than other states, they even have different rates from different locations within the state. Where you live, how you protect your vehicle from possible theft or other damage, all comes into play when determining your rates.