Even though many insurers offered pandemic discounts during 2020, car insurance rates in Florida continue to be some of the costliest in the U.S. You may wonder how insurance companies decide what to charge, anyway—and if there’s anything you can do to pay less for your car insurance. Aside from your driving record, here are six things that could be affecting your car insurance premiums. While some of them are common sense, you might be surprised by what factors insurance companies use to set their rates.
Your vehicle
Not only does the value of your vehicle influence the price of your car insurance, if your vehicle is popular with car thieves, it costs more than the average to repair, or has a poor safety record, you could be paying more for your car insurance.
Where you live
If you live in an area with an above-average crime rate, you’ll likely pay more.
Your commute
The farther you drive to and from work each day affects your insurance rate, because insurance companies figure the more time you spend on the road, the more likely you’ll be in an accident—whether you’re at fault or not.
Your credit record
Insurance companies have found a link between poor credit and increased insurance losses.
Your age
Younger drivers with less experience are more likely to be involved in an accident.
Your discounts
Different companies offer different types of discounts, but some of the most common include safe driver, low mileage, good student, vehicle safety features, claim-free, prior coverage, homeowner, and multi-car or multi-policy discounts.
Of course, we think the best way to make sure you’re not paying too much for your car insurance is to give Lakewood Financial a chance to quote your policy—we write with many great insurance companies, both standard and non-standard, and we’d love the chance to earn your business!
If you haven’t shopped around for a better auto insurance rate recently, it’s time to do so.
Let Lakewood Financial do the comparison shopping for you! Since we represent so many insurance companies, we can find the best rate for your situation, whether you have good credit, bad credit, a clean driving record or one that’s not so stellar. We also have companies that will write your policy if you’ve had a PIP claim, you need an FR-44 or an SR-22. Please call us at 941-747-4600, or click here for an auto insurance quote.
Lakewood Financial is an independent insurance agency serving Bradenton, Lakewood Ranch, Sarasota, and surrounding communities. We’ve been in business since 2003 and our agents are experts in personal insurance, business insurance, Medicare insurance, and Life insurance.