January 6, 2012

3 Factors That Are Driving Up Florida Car Insurance Rates

Florida car insurance rates have risen significantly through the last several years and, while insurance rates have risen throughout the U.S., drivers in the Sunshine State have seen particularly dramatic changes. There are several key reasons for the recent rise in Florida car insurance rates including the somewhat confusing process for negotiating a car insurance claim, the state's unique traffic laws and the state's overall driving statistics.

Like several other states, Florida practices a form of no fault car insurance. Under a no fault system, drivers pay for their own costs in small accidents and no attempt is made to decide fault. This helps to keep accident-related cases out of the court system. However, Florida isn't an absolute no-fault state and fault can be assigned in many accidents. The hybrid system can make the process of negotiating a car insurance claim a headache for drivers. Overall, Florida's auto insurance system probably leads to lower insurance costs, but some insurance industry analysts feel that a more efficient system would help to prevent Florida car insurance rates from rising.

In the state of Florida, drivers must carry $10,000 in personal injury protection and property liability coverage. These are not high insurance requirements by any means and most drivers buy more than the basic coverage amounts. Even so, some drivers don't buy important underinsured/uninsured motorist coverage and other types of coverage are neglected. Florida's low auto insurance requirements might actually raise the overall cost of auto insurance in the state, as low requirements limit the value of the average policy. Some insurance companies have recommended higher requirements as a way to help curb the rise of rates. New traffic laws may also have an effect on insurance costs as distracted driver laws and other new types of potential citations can increase the cost of individual policies.

Driving statistics play a significant role in determining insurance rates and, unfortunately, Florida suffers from high accident and crime rates, particularly in larger cities. A driver's location can greatly affect his or her ability to find cheap insurance and, in states like Florida, it can be hard to find a completely low-risk area. To keep rates down, drivers should look online for insurance quotes on a regular basis. This helps to push down the cost of car insurance, as viewing a few quotes makes it easier to choose an appropriate option with a relatively low insurance rate. In a unique no-fault state like Florida, effectively researching insurance options can be an excellent way to exercise more control over a policy and to keep premiums at an affordable level on a standard car insurance policy.