To qualify for car insurance discounts in Florida, you don't have to wait until the policy is renewing. Don’t rely exclusively on the agent or insurance carrier to let you know about the discounts that may potentially be available to you. Take things into your own hands and review the discounts below when comparing auto quotes.
Insurance companies rely on massive amounts of actuarial data when calculating discounts. Customers who then fit into those categories can be rewarded with discounts, although they are calculated differently by each insurance company.
For example, let’s say you work from home in Miami and don’t generally drive for work. In that case, your insurance company will take that into account and likely charge you less for auto insurance. The thinking is that the less you drive, the fewer opportunities you have for accidents and auto claims.
Additionally, many insurance companies have enticing discount offers for good driver behavior, like successfully completing a defensive driver course.
Let’s take a look at how auto insurance premiums are calculated. Many factors are considered when calculating a final premium:
The base rate: the insurance company determines a “base” rate when considering underwriting factors like the driver's age and gender, and the zip code where the car is garaged.
Surcharges are then added for things generally considered to be in your control, like traffic tickets, late payments, or a poor credit score.
Finally, discounts are applied. The insurance company looks for potential savings you may qualify for.
Here is a brief summary of some typical Florida insurance discounts:
Bundled - Save by "bundling" home and auto insurance with the same carrier
Early Renewal - Renew your policy prior to the renewal date
Customer Loyalty - Rewards existing customers for staying with the carrier
Multiple Cars - More than one vehicle on a policy
Homeowner - Discounts offered for owning a home
Good Student - Carriers offer discounts for good students
Senior - Discounts for seniors with good driving records
Defensive Driver Course - Drivers that successfully complete a course may be eligible
Hybrid Car - Driving a "green" or hybrid car may qualify you for a discount
New Car - Some carriers offer a new car discount
Paperless - Accepting digital delivery of policy documents
Pay the Policy in Full - Pay in full at policy inception rather than monthly
Auto-Pay - Allow the insurance company to automatically deduct payments
So, how much can really be saved by adding discounts?
As demonstrated above, bundling policies, customer loyalty, and driving a new car can mean savings on your auto premium. While the actual amount of the discount may vary from company to company, some discounts are generally worth more than others.
A defensive driving course, for example, may get you a 10% discount, while the “paperless” discount may only get you 3%.
Once you start adding up potential discounts, you might begin to think that the insurance company should be paying you for the privilege of providing insurance. Unfortunately, it doesn’t work that way in practice.
There is usually a maximum limit on the discounts you can earn on a policy. Many insurance carriers cap the total discounts at around 25%.
Do you want to see what discounts you qualify for? Contact us today to speak with a licensed auto insurance agent.
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