Florida Car Insurance Rates

Every auto insurance company licensed to do business in the state of Florida has their own unique rates for clients who buy personal car insurance.

While companies can decide whether or not they want to charge competitive rates based on risk, these rates must be approved by the state's Office of Insurance Regulation to prevent predatory practices in the industry.

Individuals who are shopping for the most competitive insurance policy should not only be familiar with the mandatory insurance laws, they should also know what factors can drive their rates up or down. Read this guide to Florida car insurance rates, and learn everything that you need to know.

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Florida's Mandatory Insurance Law

In the state of Florida, all drivers who are operating a registered vehicle on public roadways is required to purchase and maintain continuous auto insurance coverage. If the vehicle is required to be registered in the state of Florida, the driver must purchase the insurance from an insurer that is licensed to do business in the state.

If you are looking to verify whether or not an insurer is licensed to do business, you can verify that the company has an active NAIC code by using the search tool through the Office of Insurance Regulation.

Minimum Coverage Requirements

Every state has their own set of required coverage limits and options. You should know these requirements before you start comparison shopping. In the state of Florida, which is a no-fault state, all drivers must carry Personal Injury Protection of at least $10,000 and Property Damage Liability of at least $10,000.

Because the state is a no-fault state, your own Personal Injury Protection coverage will cover you regardless of fault when you or passengers are injured.

Choosing higher limits may be necessary, but carrying these limits will ensure that you are in compliance with the law. Your rates are dramatically impacted by the coverage limits and options that you select.

It is also important to know that failing to purchase coverage may result in not just unpaid medical bills, but also fines, suspension of your registration, suspension of your license, or jail time.

Optional Forms of Coverage in Florida

You may only need to maintain PIP and PDL coverage in the state, but there are additional forms of coverage that you can elect to purchase for added protection and additional premiums. Here are some optional coverage types:

Physical Damage

If your vehicle is being leased or financed, you will be required as a borrower to maintain full coverage on your vehicle. This protects the interests of the lessor or lender if the vehicle is damaged or totaled.

You will need to carry both comprehensive and collision insurance. Comprehensive will pay for damages that result from fire, theft and vandalism. Collision will pay for damages that result from an accident where the vehicle is moving. Rates for collision tend to be much higher than the rates for other types of cover.

Bodily Injury Liability

While it is a no fault state, there is still a chance that victims in a car accident can sue a negligent party when they suffer a severe injury or when there is a fatality. To protect yourself against this type of situation, you can purchase Bodily Injury Liability that will protect you in court and also pay out for founded claims and judgement. Purchasing this coverage will add to your base rate.

Uninsured Motorist

If you are hit by a driver that has no insurance or your PIP is not enough to cover your medical bills, purchasing Uninsured Motorist cover will help you. Failing to purchase this added coverage will place the burden of paying for hospital bills on your back.

The low rate for UM is certainly worth it to many, especially since the Florida has the second highest rate of uninsured drivers based on research conducted by the Insurance Research Council.

What factors will affect your car insurance rates?

Now that you have been familiarized with coverage options that you can select from and how they can affect your car insurance rates, the next step is learning about the individual factors that an underwriter will use to determine what your rates will be.

You must understand how insurance works to truly understand why you can pay such a higher rate with one company than you do with another. Read on, and learn more about the industry and the factors that are most important to assess risk.

Risk and Competitive Pricing

An insurance company must establish their rates to charge for the risk that a customer presents. If the statistics say that a driver presents very little risk, they will pay less than drivers who are classified as 'high risk' in insurance terms.

While there is a long list of factors actuaries will use when considered the rates they must charge, the company also must focus on staying competitive. This is why it is common for many companies to target a specific audience so that they can compete in this niche.

By charging competitive rates in one niche and pricing themselves out of the market in other groups, they can market to a specific client base and grow their book-of-business. This is why it is so very important for all consumers in Florida to price shop and compare the rates through many different insurers to find the best price.

Personalized Factors

Some of the factors that are used to determine your rates can be changed and others cannot. Knowing how all of these factors come into play when you request a quote will give you the knowledge that you need to know to determine if you are being quoted a competitive price. Here are some that all consumers should know about:

Age and Gender

Both your age and gender can affect your premiums, and in some cases both of these factors will work together. Males tend to pay higher insurance rates than females, but younger males pay much higher rates than young females.

Inexperienced operators pay higher rates because they do not have the defensive driving skills that they need to avoid an accident in a dire situation, according to the statistics. According to these same statistics, males are much more likely to get into an accident than females in any age group.

Fortunately for some males, your marital status can lower your premiums with many companies. Keep this in mind when you are comparing rates.

Usage

Did you know that there three different usage categories in the world of insurance? Depending on the purpose of your driving on a daily basis, you will be classified as a pleasure user, a commuter, or a business classification.

The rates for each of the classifications will vary. Pleasure is the lowest rated option, because individuals who drive for pleasure often avoid driving during rush hour and are less likely to get into an accident.

Commuters will pay higher rates because they drive in congested conditions. Business users will pay the highest rates because the drive in stressful situations multiple times each day.

Annual Mileage

The more that you drive the more likely you are to get into an accident. If you drive more than the state average, you are a high exposure to risk.

If you drive less than the average, you may receive a discount for that vehicle. Extra vehicles tend to have more favorable rates than primary vehicles.

Vehicle Type

If you are buying a new car, knowing how the vehicle type can affect your rates is very important. The age of the vehicle that you buy does not determine the rates, but the classification does.

If the vehicle is known for causing damage in an accident, the rates will be higher than one that does not cause much damage. If the vehicle cost a lot to repair, these statistics can raise the rates. This is why it is so important to quote the cost for insurance on all vehicles that you are considering before you buy.

Driving Record

Violations may not cost the insurance company money, but they are used to determine how responsible you are behind the wheel.

A company can charge you surcharged rates for a minor moving violation for up to 36 months from the date of conviction. You can be charged for at-fault accidents for 36 months as well because you are considered higher risk.

It is very important to look out for all of the discounts that you qualify for when you are considered a risky driver. Both low-risk and high-risk drivers may be eligible for discounts for having prior insurance, for their occupation or even for earning good grades.

Take time to price the cost of insurance through several Florida car insurance companies so that you can determine which target market the company is targeting. Once you find the company that caters to drivers like you, determine which coverage options are best for you and bind your coverage.

Be sure to use the FREE comparison tool below to find your best coverage options!