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Why Are Auto Insurance Rates Rising?

Auto insurance rates all over the United States have been increasing over the past few years. Florida is no exception, with auto insurance rates being almost double the national average. While there are some external factors that contribute to rising costs, there are some things the insured can do that may help lower their rates.

Reasons Rates are Increasing

Attorney Costs

Florida is a no-fault state, meaning that in the event of an accident, all parties must submit claims to their own insurance. This can increase the chance of involving an attorney. Insurance companies face higher fees and can pass these down to the policyholders.

Hurricane Costs

The geographic location of Florida can also impact rates. The state is much more likely to receive hurricanes that damage vehicles, compared to other states. This risk increases auto insurance rates in the event of a claim.

Influx of Tourists

In 2022, about 137.6 million people visited Florida, making it one of the most traveled states in the country. This high influx of tourists increases the amount of people on the roads. Accidents are more likely to happen with the busy traffic the state faces. Insurance companies raise rates to cover the higher rate of collisions.

Uninsured Drivers

In 2021, a study by the Insurance Research Council found that over 20% of drivers in Florida are uninsured. Getting into an accident with someone without insurance increases the cost for your insurance company, leading to higher premiums.

Ways to Lower Insurance Premiums

There are a few ways the insured can help keep their auto insurance premiums low, regardless of where they live and their age.

Bundle and Save

Bundling your home and auto insurance policies can save you money when you have coverage with the same insurance provider.

Practice Safe Driving

Practicing safe driving can help keep your premiums low. If you have a clean driving record, you may qualify for safe driver discounts.
This could save you between 10% and 25% of your premium.

Raise Your Deductible

Raising your deductible on your auto insurance to an amount you are comfortable paying will lower the amount your insurance company must pay in the event of a claim.

Talk with FBC Insurance Services Agents

FBC Insurance Services agents are dedicated to finding you the best rates for your auto insurance. Call or email us to get a quote from any of our A-rated 35+ carriers on auto and supplemental insurance.

The above description provides a brief overview of the terms and phrases used within the insurance industry. These definitions are not applicable in all states or for all insurance and financial products. This is not an insurance contract. Other terms, conditions and exclusions apply. Please read your official policy for full details about coverages. These definitions do not alter or modify the terms of any insurance contract. If there is any conflict between these definitions and the provisions of the applicable insurance policy, the terms of the policy control.

Ready to Learn More?

Connect with one of our insurance specialists today.

Why Choose FBC Insurance Services?

At FBC Insurance Services, we are committed to providing our clients with outstanding customer service. We have access to many different A-rated insurance carriers that are able to provide coverage across the country. This means we will shop them all and find the best insurance offer whether it’s for your home, flood, auto, motorcycle, boat, recreational vehicle, or personal policy. We also offer bundling of policies to provide you further discounts and savings.

All information presented is for educational purposes only and not intended as financial advice.

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