Florida Auto Insurance Rates Increase
In the state of Florida, recent reports show that State Farm has increased auto insurance rates by 9.2 percent. This increase in rates is said to affect a large number of clients in the state. At last count, the affected policyholders totaled 2.7 million.
Why Are Rates Increasing?
A spokesman from State Farm insurance acknowledged the rate increase and explained that the recent trend of has a lot to do with an increase in auto claims filed in recent times.
Also, a representative from the Insurance Information Institute, Lynn McChristian, explained that the recession may also play a role. With few people purchasing auto insurance, others have to compensate for the decrease in revenue companies are bringing in.
What to Do if Your Rates are Increasing?
If you find yourself in a predicament where your auto insurance rates are increasing, there are some actions that you could consider to lower your rates:
- Increase your Deductible: By raising your deductible amount, you automatically lower your auto insurance premium.
- Try low-mileage insurance: Programs like Progressive’s Pay as You Drive allow you to pay for the miles you drive, potentially lowering auto insurance costs.
- Fix your credit: Since many auto insurance companies price coverage premiums partially according to credit scores, by fixing yours, you could qualify for lower premiums and reap additional benefits (auto and mortgage loans) as well.
- Look for discounts: Many insurance companies offer discounts for various reasons (loyalty, good student, good driver). Check with your insurer to see what you may be eligible for.
Unfortunately, individuals and Florida may be on the hook for higher premiums, but if they find outside ways to lower their coverage, they may not have to pay as much as it seems.