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Auto Insurance: Understaning rates and underwriting guidlines |
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Florida auto insurance costs have become ridiculously expensive and unaffordable for many with a strapped budget. Not everyone has the privilege of obtaining a scooter and eliminating insurance costs. Here is a common logistical approach for evaluating auto insurance costs and factors. |
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| Author: David Degen |
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Auto insurance is rated on many different factors. First there is your credit score. Why should your credit score determine the cost of insurance? Simply put, statistically it shows a persons responsibility to pay bills on time and be more aware for their actions while driving. Person with a high credit score will have more fear to get behind the wheel of a car if they are intoxicated than one with a low or no credit score. Credit score is something people want to keep and retain as it brings benefits and discounts in many different financial areas.
Then there is the old driving record. For those who wear seatbelts, don’t speed or at least don’t get caught at it and are lucky enough not to have any collisions with other fellow motorists or objects, receive a huge reward from insurance companies by not being surcharged for reckless behavior. Other factors which determine rates are length of driving history. Operators from certain countries outside the USA are surcharged because the insurance company can not check your driving record. Marital status believe it or not has also an effect, if you’re a single female your rate could be higher than if you were married.
Florida Insurance companies are insinuating single females may have unknown friends or boyfriends which at sometime may borrow their car, this becomes a higher risk for the carrier. And of course zip code has a major role. Insurance carriers hire bean counters.
People who’s job is strictly to read statistics. They create reports on every zip code in Florida state illustrating the number of accidents, speeding tickets, deaths, DUI’s, vandalism, etc. If you’re lucky enough to be in one of the congested zip codes you will enjoy the benefits of the higher cost of insurance.
Another factor why Florida's auto insurance is so high is due to high loss exposure. The area is well known for its riff raff of stolen cars, stolen parts, and accident scams. While many scammers take advantage of the Florida insurance companies assets the good paying consumers who avoid trouble have to pay for these losses and expenses. So the insurance keeps rising as cars keep increasing in value and claims grow consistently.
With all this said what is it you can do to decrease the cost. Obviously some have realized when the fantasy of owning that dream car fades the monthly payments combined with the insurance becomes a scary reality.
Keep in mind if you change to an auto insurance carrier who is small and not well known, this may not be worth the money you may save. Today customer service is key and small companies just can’t or don’t want to spend the money for proper customer services. When you’ll need them it won’t be worth the money you’ll save from the frustrations and stress they can give you.
Happy motoring.
About Author
Mr Degen is a Florida Licensed Property and Casualty Broker since 1996. He specializes in Auto insurance, Condo and Homeowners insurance, Flood insurance, Business insurance, Liability, Life and Health, Disability, Long term care and Annuities. Provides clients with insights on insurance issues to help people reach thier goals and dreams.
More info:
http://www.FLAuto-Insurance.com.
Article Source:
http://www.1888articles.com/author-david-degen-14579.html
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