Florida Personal Auto Insurance

Auto / Auto

 

This particular insurance is purchased for cars, trucks, and other road vehicles. It provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise therefrom. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree, vehicle insurance may additionally offer financial protection against theft of the vehicle and possible damage to the vehicle sustained from things other than traffic collisions.

BASIS OF PREMIUM CHARGES

Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company, in accordance with a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.

When the premium is not mandated by the government, it is usually derived from the calculations of an actuary, based on statistical data. The premium can vary depending on many factors that are believed to have possibly impact the expected cost of future claims. Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (age, gender, driving history), and the usage of the car (commute to work or not, predicted annual distance driven).

 GENDER

Gender can be used as an actuarial factor for the calculation of insurance rates.

AGE

Teenage drivers who have no driving record will have higher car insurance premiums. However, young drivers are often offered discounts if they undertake further driver training on recognized courses. Many insurers offer a good-grade discount to students with a good academic record and resident-student discounts to those who live away from home. Generally insurance premiums tend to become lower at the age of 25. Some insurance companies offer "stand alone" car insurance policies specifically for teenagers with lower premiums. By placing restrictions on teenagers' driving -- forbidding driving after dark or giving rides to other teens, these companies effectively reduce their risk.

Senior drivers are often eligible for retirement discounts, reflecting the lower average miles driven by this age group. However, rates may increase for senior drivers after the age of 65 due to the higher risk level that is associated with much older drivers. Typically, the increased risk for drivers over 65 years of age is associated with slower reflexes, reaction times, and being more injury-prone.

U.S. DRIVING HISTORY

In most U.S. states, moving violations, including running red lights and speeding, assess points on a driver's driving record. Since more points indicate an increased risk of future violations, insurance companies periodically review drivers' records, and may raise premiums accordingly. Laws vary from state to state, but most insurers allow one moving violation every three to five years before increasing premiums. Accidents affect insurance premiums similarly. Depending on the severity of the accident and the number of points assessed, rates can increase by as much as twenty to thirty percent. Any motoring convictions should be disclosed to insurers, as the driver is assessed by risk from prior experiences while driving on the road.

MARITAL STATUS

Statistics show that married drivers average fewer accidents than the rest of the population so policy owners who are married often receive lower premiums than single persons. This is another factor used towards rate calculation.

VEHICLE CLASSIFICATION

Two of the most important factors that go into determining the underwriting risk on motorized vehicles are: performance capability and retail cost. The most commonly available providers of auto insurance have underwriting restrictions against vehicles that are either designed to be capable of higher speeds and performance levels, or vehicles that retail above a certain dollar amount. Vehicles that are commonly considered luxury automobiles usually carry more expensive physical damage premiums because they are more expensive to replace. Vehicles that can be classified as high performance autos will carry higher premiums generally because there is greater opportunity for risky driving behavior.

Motorcycle insurance may carry lower property-damage premiums because the risk of damage to other vehicles is minimal, yet have higher liability or personal-injury premiums, because motorcycle riders face different physical risks while on the road. Risk classification on automobiles also takes into account the statistical analysis of reported theft, accidents, and mechanical malfunction on every given year, make, and model.

DRIVING DISTANCE

Some car insurance plans do not differentiate how much the car is being used. There are however low-mileage discounts offered by some insurance providers. Other methods of differentiation would include over-road distance between the ordinary residence of a subject and their ordinary daily destinations.

REASONABLE DISTANCE ESTIMATION

Another important factor in determining car insurance premiums involves the annual mileage put on the vehicle, and for what reason. Driving to and from work every day at a specified distance (especially in urban areas where common traffic routes are known) presents different risks than how a retiree who does not work any longer may use their vehicle. Common practice has been that this information was provided solely by the insured person, but some insurance providers have started to collect regular odometer readings to verify the risk.

Critics point out the possibility of “cheating the system” by odometer tampering. Although the newer electronic odometers are difficult to roll back, they can still be defeated by disconnecting the odometer wires and reconnecting them later. However, as the Cents per Mile Now website points out:

As a practical matter, resetting odometers requires equipment plus expertise that makes stealing insurance risky and uneconomical. For example, to steal 20,000 miles [32,200 km] of continuous protection while paying for only the 2000 in the 35000 to 37000 range on the odometer, the resetting would have to be done at least nine times, to keep the odometer reading within the narrow 2,000-mile [3,200 km] covered range. There are also powerful legal deterrents to this way of stealing insurance protection. Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel. Odometer tampering, detected during claim processing, voids the insurance and, under decades-old state and federal law, is punishable by heavy fines and jail.

Under the cents-per-mile system, rewards for driving less are delivered automatically without the need for administratively cumbersome and costly GPS technology. Uniform per-mile exposure measurement for the first time provides the basis for statistically valid rate classes. Insurer premium income automatically keeps pace with increases or decreases in driving activity. This helps cutting back on resulting insurers demand for rate increases and preventing today's windfalls to insurers when decreased driving activity lowers costs but not premiums.

FLORIDA VEHICLES DISCOUNTS

A shiny new set of wheels can help you lower your car insurance rates. Your car's safety features could also help you spend less on auto insurance. Explore all the vehicle discounts from Allstate:

  • Passive Restraint Discount: If your car came from the factory with airbags and motorized seatbelts, you could save up to 30%.
  • Anti-Lock Brake Discount: When your car is equipped with anti-lock brakes, you'll score a 10% discount.
  • Anti-Theft Device Discount: Secure more savings with an anti-theft device in your car—up to 10%.
  • New Car Discount: Save up to 30% if you're the first owner of the vehicle or if your car is only two years old.
  • Economy Car Discount: You could save some green for driving green. Insuring an economy car could help you earn up to a 10% off your premium.
  • Homeowner Discount - Being a homeowner in the US gives the insured a basis of structure and security. It also give the insurance company and additional feature of security stating a stable situation of the insured. Up to 25%.
  • Multi-Car Discount - Having more than one vehicle on a policy could give a discount.

POLICY DISCOUNTS

From the way you pay your bill to purchasing additional insurance from Allstate, your policy management style can help you save money. Discover the available policy discounts:

  • Automatic Withdrawal Pay Plan Discount: It only applies for some companies. Save up to 5% on auto insurance when you set up automatic withdrawal.
  • Full Pay Discount: Save up to 10% when you pay your policy in full.
  • Early Signing Discount: Save up to 10% when you sign your policy seven days before it becomes effective.
  • Good Payer Discount: Save up to 5% if you did not receive a cancellation notice for non-payment during the past 12 months.

LIFESTYLE DISCOUNTS

You could already be eligible for discounts that can help make your auto insurance more affordable. See the ways your lifestyle can help you save:

  • Senior Adult Discount: Drivers who are at least 55 years old and not actively seeking full-time employment can save up to 10%.
  • 55 and Retired Discount: Drivers who are at least 55 years old and not actively seeking full-time employment can save up to 10%.
  • Resident Student Discount: Enjoy up to 35% off your premium if you have a child attending school at least 100 miles away from where your car is garaged.
  • Good Student Discount: All those A's can add up. Single, full-time students under the age of 25 can save up to 20% for getting good grades.

DRIVING DISCOUNTS

If you have a history of safe driving habits or proactively develop your safe driving skills, you could be rewarded with auto insurance discounts. Check out the discount rewards Allstate offers:

  • Premier Discount: Save up to 22% for driving 3 years without any violations or accidents.
  • Premier Plus Discount: Save up to 35% for driving 60 months without any violations or accidents.
  • Safe Drivers Discount: Your safe driving habits could save you up to 45% on car insurance.
  • Good Grades Discount: Save up to 10% when your teen maintain a good grade or GPA  in school.
  • Defensive Driver Discount: Drivers who are 25 years old, have completed six or more hours of defensive driving courses and have no violations and no at-fault claims can save up to 10%.

**Please note that discount variables are not offered by all companies in the State of Florida. However, some companies have a variation of discounts to encourage individual owners to shop for coverage.

Talk to an agent at Insurance Warehouses of America to learn more about personal automobile insurance! They will help you find the ideal car insurance, but also what Florida auto insurance discounts you can qualify for! 

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