“There are ways to limit rising auto insurance rates” |
| There are ways to limit rising auto insurance rates Posted: 25 Nov 2010 12:14 PM PST To drive legally, all drivers in the United States must carry some form of car insurance, according to AAA Auto Club South. What's required in Florida? "There is a requirement you have to have $10,000 minimum personal injury protection and $10,000 minimum of liability insurance. Those are minimums," said Lynne McChristian, Florida representative, Insurance Information Institute. Typically, most people purchase coverage that will pay at least $100,000 per person and $300,000 per accident. "The more assets you have, the higher you should have your limits set," McChristian said. Bob Long, senior insurance manager, AAA Auto Club South for Palm Beach, Broward and Miami-Dade counties, agreed about the typical coverage, and said, "We have seen people going below that due to the economy. We don't recommend it. " Florida is one of 12 states that has no-fault insurance, and that's resulted in an insurance fraud problem. "The $10,000 limit has wound up being a pocket that is being picked by unscrupulous medical providers, unscrupulous attorneys and people making money at the expense of responsible drivers," McChristian said. "It's driving up everyone's rates," she said. "It is not a victimless crime." Long said the fraud also drives up all medical costs of all types, not just for those related to accidents. Florida has the dubious distinction in ranking sixth-highest in the number of uninsured motorists, at 23 percent, according to the Insurance Research Council. "Even though it is not a state requirement, I recommend you carry uninsured motorist bodily injury coverage. If you are hit by someone who is uninsured, it will help pay for your injuries," Long said. We all want to know how to cut insurance costs, but first here's a look at factors that determine how much you're paying. Why you pay what you do Everything from where you live to your marital status and age, even your credit rating, are taken into account. Insurance companies determine risk factors by studying common characteristics of those who have filed claims. AAA and the Insurance Information Institute cite these factors: 1 The level of coverage you receive. The more coverage you have, the more you pay. 2 Your driving record. The better your record, the lower your premium. Accidents or serious traffic violations such as speeding tickets and DUIs mean you wil pay more than if you have a clean driving record. You also will pay more if you have not had insurance for a few years. 3 Your age. Younger and inexperienced drivers are more likely to be involved in an accident than more seasoned drivers. Generally drivers under 25 pay higher rates. In some instances, such as with teens, taking a defensive driver course can reduce your premium. Some companies also grant discounts to students with a B or better average. Older drivers could see rates rise at 65, and by 72 to 75, many companies require a medical statement from a physician. By completing an online six-hour driving course for drivers 55 and over, you can receive a 10 percent discount on your insurance. Go to http://mature.idrivesafely.com/Florida. It's sponsored by AAA and AARP. The cost is $15 for nonmembers and $10 for members. 4 The number of miles you drive each year. The more miles you drive, the greater the chance of an accident. The average person drives 10,000 to 12,000 miles a year. Some companies give discounts to carpoolers. 5 The car you drive. Of course, high-value cars cost more to insure, and statistically, sports cars are more likely to be in an accident than a family sedan. But insurers also keep track of which types of cars are most likely to be stolen, the cost of repairs and the overall safety record of the model. 6 Your credit. It might not seem fair, but credit scores are a tool used to determine the likelihood of a person filing a claim and the likely cost of that claim. Credit-based insurance scores are based on such information as payment history, bankruptcies, collections, outstanding debt and length of credit history. 7 Where you live. Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repairs. Living in an area with a high crime rate or in an urban area will boost rates. Whether you park your car in a garage, the driveway, parking lot or on the street can also come into play. This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php |
| You are subscribed to email updates from Content Keyword RSS To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
0 comments:
Post a Comment