6 Reasons Auto Insurance in Florida May Increase

While you hope that your auto insurance always remains affordable, it may not always be the case. Auto insurance in Florida may spike from time to time. Knowing about the reasons will make it easier for you to manage your premium so that it continues to be affordable.

State Regulations

Sometimes, the insurance across the entire state of Florida will change. This is because of various regulations within the industry as well as various laws that may pass in the state. When this happens, the cost of insurance will go up across the state, not just with one company.

Auto Accident

If you get involved in an accident, regardless of fault, your insurance is likely going to go up. There are ways you can try to lower it. However, initially at least, it’s going to take a spike.

Number of Accidents in Your ZIP Code

Insurance companies always ask for your zip code. The reason is because they are going to look at how safe it is on the roads. The areas where there are more accidents, they will charge their customers more money. This is because you have a higher potential for being involved in an accident. When the insurance company reviews what goes on in your zip code, it could end up with an increase to your next premium.

A Change in the Car You Drive

If you change cars, the cost of insurance may go up. This may be because it is new and therefore more expensive. It may not have as many safety features as your last car. It could even be because the make and model you have is more likely to be stolen. A Honda Civic, for example, is considered one of the most likely vehicles to be stolen and therefore the cost of insurance is a little higher than other cars within its class.

Traffic Citations

Traffic citations, such as speeding and running a red light, are reported to the DMV and then to insurance companies. It shows that you’re not the safest driver out there. Often, it ends up with a higher rate to you because the insurance company is covering itself. They assume that if you violated the law, you are at a higher risk for being involved in an accident.

Company Changes

The reality is, sometimes insurance companies simply choose to raise the cost of insurance. They may be having financial problems. They may have also recently gone through a merger with another insurance company. This is why it is always recommended to shop new insurance on an annual basis. It will provide you with peace of mind knowing that you still have an affordable policy with all of the coverage that you need.