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Have you ever wondered why some people pay more or less for their car insurance than you? Check out these three things that Florida car insurance companies use to calculate your rates and how you can work towards a lower rate:

3 Factors Florida Car Insurance Companies Use to Calculate Your Rates

  1. Previous driving history. Your previous driving record plays a massive role in the insurance rates a car insurance company will offer. Insurers offer low rates to drivers they deem as low risk, i.e. drivers without any gaps between vehicles and without a pile of traffic tickets in their name. In contrast, drivers with speeding tickets, large gaps in their car insurance coverage, or recent auto insurance claims should anticipate paying higher than average insurance rates.
  2. Type of vehicle. Vehicle type plays such a large role in determining insurance rates and if you are looking to avoid high premiums, it may be a good idea to talk with your insurer before you head to the dealership. Insurers will look at a vehicle’s safety ratings, often offer discounts to consumers who drive vehicles with strong performance records. On the other hand, vehicles more susceptible to damage are likely to be saddled with higher insurance premiums. Some car insurers will also demand higher rates for vehicles that have a higher likelihood of theft or are of a more expensive build.
  3. Annual mileage. The more a person drives their vehicle, the higher their risk of encountering an automobile accident. As such, drivers who use a vehicle only recreationally or for short commutes can apply for low-mileage discounts or usage-based car insurance rates. On the other hand, if you use your vehicle as a daily driver from the suburbs to downtown or use it all for commercial purposes, then you can expect to pay higher insurance rates.

As you can see, it isn’t just age and gender that have an impact on how high (or how low) your insurance premiums are. Focus on factors you can control, such as switching to a low-risk vehicle and reducing your mileage, for more attractive offerings.