4 Easy Ways to Slash Your Auto Insurance Premium

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Why Auto Insurance Rates Increase

Florida auto insurance can be expensive. There are many reasons why premiums could be rising. The most important reason is claims. Insurance carriers must properly manage cash out and cash in to stay profitable. Insurance rates have risen in central Florida because of auto insurance fraud. Bloomberg reported recently that the number of staged accidents jumped to over 50% in 2009. In Central Florida, the deliberate crashes have expanded from South Florida to Tampa and surrounding areas.

Carriers will pay thousands to victims of fraud in the case of personal injury or bodily injury. Accidents, traffic violations, and a poor insurance score are all reasons why you might pay more. Insurance Risk Scores are a major part of determining risk for carriers. While they may not be as important as a beacon score, they can have a significant impact on the final rate that you pay. According to insurance companies, statistical studies have shown a correlation between credit history and the likelihood of a consumer filing an insurance claim.

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Another reason is the recession’s effects on consumers. They have reduced coverage and dropped bodily injury and uninsured motorist coverage. This protects us in an accident caused or their vehicle by someone else who has no insurance. Our company will pay the claim if the uninsured hit us. This in turn drives up our rates. Consumers should also be aware that letting their auto insurance lapse can cause a huge financial hit. Not only is it illegal in Florida, but many carriers will not even cover you. If they do, the rates could go up to an astronomical amount.

Four ways to reduce your auto insurance premium

1. A Independent Agent represents many companies and allows you to compare rates

If you are considering changing carriers or purchasing a new vehicle, it is best to consult an insurance broker. They can shop for you among the top carriers to find the best price. To find out if they can match what you are currently paying, send them your current declaration and make any necessary changes.

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* Avoid shopping right after an accident, ticket or other violation. You will usually do better staying where you are because you might be charged a surcharge for a few more years.

* If your credit score is lower, don’t shop around for insurance.

2. With your agent, complete an annual review of your coverage.

Your agent has an obligation to you and a desire for you to return to their agency over the years. Even if you don’t switch insurance providers, it is possible to lower your annual premium. Simply discuss your current needs and current coverage to find the best fit. You can often move things around to increase coverage or reduce your premium.

3. Take a look at these discount opportunities:

* Find a safer car or a car with lower rates. For example, a Honda Civic costs more to insure that a Honda Accord .

* Vehicle recovery system, Anti theft, Car alarm

* Homeowner Discounts

* Multi-Policy Discount Combining Multiple Cars, Your Home and Auto or Auto & Umbrella Liability Policy

4. Last resort: You have lost your job, and you need to save money to get yourself back on your feet.

  • Drop your uninsured-motorist coverage.
  • Add on extras such as towing or labor
  • To lower your premium, you can add a PIP deductible
  • Reduce your liability coverage to the minimum state law allows. In Florida 10/20/10
  • Get collision and comprehensive coverage.
  • For collision and comprehensive deductibles, increase your deductible to $1,000
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While it is important to have affordable auto insurance, you should also keep in mind that you could be putting your family and assets at risk by reducing your coverage to state minimums. If you cause an accident that results in injury or death to another person, you could be held responsible for any expenses beyond what your insurance policy covers. Many people will discover that a simple repositioning can provide sufficient protection while still keeping their wallet intact.