How To Beat Sky High Auto Insurance Costs

Florida’s high auto insurance costs place us almost dead last compared to other states. The only state that did worse was New York.

Paying a fortune for car insurance in Florida? We feel your pain.

Car insurance can be a big budget buster in Florida (I should know. I used to have two very expensive teenage drivers on my policy!).

Insurance experts say that’s because we have more accidents, more litigation, and more fraud than most other states. That drives up insurance prices.

“The average Floridian pays $1,784 each year just for auto insurance. That is more than twice the auto insurance premiums paid by citizens of states like North Carolina and Massachusetts,” reports Florida-based Anderson & Associates Insurance Group.

Our state placed almost dead last in a WalletHub survey measuring car insurance costs nationwide. The only state that did worse was New York.

The silver lining? WalletHub also identified the companies offering you the best deals on car insurance in the Sunshine State.

Here’s some tips on how you can keep that auto insurance bill under control:

Shop around. Most people don’t. A NerdWallet study found that “38% of Americans who have car insurance haven’t compared insurance costs in at least three years, if ever.” You might be surprised to find that you can get competitive quotes from premium companies, depending on your situation, so don’t be afraid to comparison shop and switch policies.

Keep your credit clean. In Florida, and many other states, a strong credit rating can get you better deals on car insurance.  “Having poor credit can boost people’s car insurance rates by hundreds of dollars a year compared with having good credit,” says NerdWallet.

Learn the tricks to keeping costs down. Be a smart insurance consumer. A higher deductible can save you money on premiums. So can buying the right kind of car, and avoiding the wrong kind (check lists of the cheapest cars to insure before buying). Reduce collision and comprehensive coverage on older cars, and keep a safe driving record.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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