The good news is that car insurance isn’t nearly as expensive as health insurance, nor is it becoming increasingly expensive every year. However, sometimes the rates go up depending on where you move. If you’re moving to the Sunshine State for real estate that’s now cheap, you may be hit with a higher car insurance premium on your Florida auto insurance rate.
Florida Auto Insurance Rate Laws
If you own and drive a car in Florida, then auto insurance is required. The good news for those who want to try to get by with as little coverage as possible is that the minimum requirements are lower than in most other states. If the car is registered in the Sunshine State, the minimum amount of coverage legally required for your Florida auto insurance rate is $10,000 for Personal Injury Protection, or PIP, $20,000 for total bodily injury liability, and $10,000 for property damage liability, or PDL. If you’re just moving to Florida, you can’t use the policy from the state you were living in before. You’re required to get a policy by a Florida agent with an insurance company that sells policies in Florida. Like most states, the Sunshine State is a “fault state,” which means the insurance company of the person who’s at fault foots the bill.
Keeping the Costs Down on Florida Auto Insurance Rate
Many things are expensive in Florida, although it does rank as one of the 15 most tax friendly states in the country, partly because no state income tax is levied there. You’d better save your money, though, because your premiums are actually on average about $200 higher than the national average.
Nevertheless there are several ways to keep costs low. The type of car you drive can affect your Florida auto insurance rate and how little car insurance you should have. As mentioned earlier, the Florida auto insurance rate legal requirement is lower than in most states, but that doesn’t necessarily mean that’s how much coverage you want. If you have a newer car that’s worth $15,000 or more, you may want to have some collision and comprehensive insurance in case your car is totaled. If your car is only worth $2,000 or less, you may just want to take the risk and not have much coverage on your own vehicle.
You can find out the value of your car by accessing the Kelley Blue Book. You can find your vehicle’s year, make, model and other information to get a good estimate of how much your vehicle is worth. Another common way to get a cheaper Florida auto insurance rate is to increase the deductible.
Then there are ways to reduce your costs by showing your insurance company that you are not much of a risk. Some states are branded as being more reckless than others. If you’re in Florida, then you can at least be thankful that you don’t have the risky reputation that you would if you lived in New York, New Jersey, Hawaii and California drivers — an ABC study showed these states ranked as having the worst drivers in the country. There are the obvious ways of doing so by showing that you have a clear driving record, showing you’re a good student, and even that you have a good credit score. Then there are the less-than-obvious ways, such as finding a home that’s close to work — the auto insurance company figures the less miles you drive, the smaller the possibility that you’ll be involved in a wreck.
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Florida Auto Insurance Rate
March 4, 2013March 4, 2013 0 Comments