How to Save Money on Auto Insurance in Florida

How to Save Money on Auto Insurance in Florida

Florida has the highest insurance rates in the country, according to insurance comparison and guidance site Insure.com. The average monthly premiums hit an astonishing $2,560 in 2022, which is more than $800 more than the national average.

At this price, insurance can take up a huge chunk of your budget, but it’s not like you can go uninsured to save some money. Not only does it protect you, your car, and other drivers, it’s a legal requirement in Florida.

But are you stuck paying the country’s highest premiums to stay safe and is it possible to get cheaper car insurance in Florida? Plenty of things factor into you the price you pay. While you can’t control all of them, you can take these steps to reduce your premiums.

Improve Your Credit Score

Usually, someone might focus on bringing up their credit score when they plan on buying a home or taking out a line of credit. But giving this score a bit of polish may help you lower your insurance, too. That’s because insurance companies use an auto credit score to determine your rates.

This auto credit score uses some data found in your traditional credit report, the one a financial institution might check when you apply for a personal line of credit in Florida. But instead of checking your creditworthiness, this auto credit check weighs the chances you’ll get into an accident.

There are a lot of things that go into your auto insurance score. But generally speaking, a higher traditional credit score will translate into a higher auto credit score.

So, what can you do to boost these scores? Focus on paying all your utilities, FL line of credit loans, and installment loans on time. You’ll also want to keep your credit card and line of credit balances low.

Shop Around for Options

Just because one insurance company charges you one thing doesn’t mean you’ll get the same price everywhere you go. Every insurer evaluates risk factors differently, which could lead to fluctuating prices.

Take the time to compare coverage and prices from at least three companies. You can find comparison tools online to help you do this, but it’s also a good idea to check in with rating sites like Standard & Poor and your state insurance department to verify information.

Qualify for as Many Discounts as Possible

Some insurance companies offer discounted rates if you prove you’re less of a risk to insure on the roads. This can be as simple as driving a vehicle with optional safety features, like lane-keep assist and a 360-degree camera.

However, your lifestyle may also play a role in the prices you pay. If you’ve been working from home since the pandemic started, you’re naturally driving less. You might be able to negotiate your lower average mileage into a better price. Bundling your home and auto insurance with the same company is also another option.

The Takeaway:

When it comes to saving money, most people try to put a stop to unnecessary spending, with things like delivery memberships, pricey gadgets, and takeout the first things to go. But if you want to make a meaningful change to your budget, consider adjusting an essential like auto insurance. In Florida, these money-savvy techniques can help you save a lot each month.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.