Car insurance rates in Florida are among the highest in the nation, and the rate increases don’t show any immediate signs of slowing. Although it may feel expensive, car insurance is both a legal necessity in Florida and the best way to obtain peace of mind regarding the safety of your vehicle. Florida drivers might not know that their specific car represents a significant part of their monthly premiums. If your monthly bills seem too high, you can opt for a new car or work with our insurance team to find a better, more affordable policy.
What Factors Impact the Typical Insurance Premium?
Florida has minimum car insurance coverage levels, but not everyone is paying the same price for their policy. Some of the factors that go into a premium calculation in Florida include:
- A history of traffic violations or accidents results in higher premiums due to increased risk.
Less experienced drivers, typically young teenage permit or license holders, often face higher premiums due to perceived increased accident likelihood. - Living in urban areas with high crime rates or heavy traffic congestion can increase insurance costs. Sometimes, neighborhoods close to each other have significantly different risk levels.
- The level of coverage, deductible amounts, and optional add-ons such as comprehensive or collision coverage affect total premium costs.
- The car’s make, model, age, safety features, and susceptibility to theft all contribute to insurance pricing.
You never know the savings available to you until you discover your options. After shopping around, you might be shocked to find out how different insurance providers view your risk level in different ways. But insurance companies aren’t in the business of providing discounts without a good reason. It’s up to you to proactively look for better policies with assistance – Anderson & Associates Insurance Group can help.
How Vehicle Type May Result in Higher Insurance Rates
For many drivers, the specific vehicle type is not the most important factor influencing their insurance rates. If you own a reliable car like a new Toyota or Honda, insurers don’t have to look at your car as another risk factor in their calculations. However, for a select group of drivers, their choice of vehicle makes all the difference. Some of the reasons specific car brands and models lead to higher insurance rates include:
Repair and Replacement Costs: Vehicles with specialized parts, expensive materials, or limited availability of repair services tend to have higher premiums.
Safety Ratings and Accident Risk: Cars with poor crash-test ratings or a history of frequent accidents typically have higher insurance rates. Sports cars, for example, are more prone to high-speed accidents than other models.
Theft Rates: Because of their desirability or resale value, thieves target some cars more frequently, making them riskier to insure.
Some expensive cars fall under all these categories. We can also take a look at specific examples; if you see your vehicle make or model listed here, it likely contributes to a much higher insurance premium:
Luxury Vehicles: Luxury vehicles like Mercedes-Benz, BMW, and Jaguar typically include high-end technology and expensive materials. Plus, not all mechanics are willing or able to work on these vehicles, requiring specialized technicians and increased repair costs.
Sports and High-Performance Cars: Sports cars like Ferraris and Lamborghini are built for speed, and insurers consider them among the highest risk for accidents occurring at extreme speeds.
Electric Vehicles (EVs) and Hybrids: Even though Tesla and Rivian models contain fewer moving parts, their repair costs are not minimal. Battery systems are expensive to repair, and there may be a lack of certified repair centers in the local area.
Your choice of vehicle might increase your premiums, but it’s still vitally important to review your insurance policy often to find better rates and update coverage levels. Call Anderson & Associates Insurance Group today to speak to our team and learn how we can help you find a better car insurance policy.
