May 24, 2011

Why Florida Auto Insurance Quotes Are Lower Than The National Average

Florida auto insurance actually costs less than the national average by a significant margin. From one year to the next, the low auto insurance quotes provide relief from the rising costs of gas and car ownership. Florida drivers are fortunate in this respect, but many wonder why rates are lower overall in Florida.

Part of the reason that Florida has relatively low auto insurance quotes is that the rates of auto crime and accidents in the state are relatively low when compared to other states. In the United States, auto theft, which is a major cost for insurance companies, is mainly prevalent on the West coast and in certain East coast states. Weather-related claims are certainly a problem in Florida, as the state is occasionally battered by hurricanes, but drivers don't have to deal with severe winter weather on any sort of a regular basis, so this also serves to lower the chances of an accident for drivers in the state. However, there are bigger factors at play in Florida auto insurance rates than simple driving statistics such as including insurance law.

Florida auto insurance operates on a no fault system of insurance, which works very differently from the at fault (or tort) systems that most states employ. In a no fault system of insurance, drivers essentially take a risk by getting on the road. If driver A is involved in an accident with driver B, both drivers would pay for their own costs, regardless of whether the accident was driver A or driver B's fault. This system of insurance is limited at a certain point. In serious accidents, a driver may still litigate for damages, but for the most part, the system works to remove the majority of car insurance related lawsuits from the courts. This removes a major administrative cost for Florida auto insurance providers. They don't have to hire lawyers or pay legal fees, and the savings are passed on to Florida drivers in the form of reduced auto insurance quotes.

When purchasing a Florida auto insurance policy, it can be comforting to know that rates are lower in the state than they are in the rest of the U.S. However, it's still important to look around for the best possible insurance policy before purchasing a new policy. Drivers should be certain to compare insurance quotes at least once every six months or so and to look into their insurance company's discount programs for ways to get even lower rates. While Florida auto insurance is relatively inexpensive, smart drivers make the most of this by taking control of their auto insurance policies for cheaper rates and better coverage.