If you are a Florida driver, you need car insurance. All the same, getting covered is going to cost you money. However, what you will pay will vary based on numerous factors. Here's a little more information to consider.
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What's A Car Insurance Premium?
A premium, also called a rate, is the price you pay insurance companies to carry your policy. It is premium money, in part, that helps the insurer pay the costs that policyholders claim against their insurance policies. To keep your policy active, you must continue to pay the premium.
Why Premiums Vary
In The Villages, a policyholder will pay $1,351 on average for their car insurance. The average rate statewide for Florida is $1,589 by comparison. However, your exact rate will vary, too. That's because, to set your premium cost, auto insurers will look at how much risk you pose to them.
To car insurers, a risk is a factor that influences your likelihood of filing a claim on your policy. Risks, therefore, are also signals to the car insurance companies of how often (and how much money) they are likely to have to pay on your behalf. Therefore, your risks equal the insurer's cost risks.
Some of the factors that insurers might use to measure your risk ratings could include:
- Your age and how long you have had a driver's license
- The age, value and features of the vehicle you plan to insure
- How much coverage you buy
- The deductibles attached to your coverage
- Your driving records and history of traffic violations
- Your location
- How often you have filed claims against your policy in the past
- Your credit score
If these factors indicate that you are a high risk to insure, then your insurer might have to charge you a higher premium. So, for example, a younger man driving a new car might have to pay more for his coverage than a more mature driver in a used vehicle.
Still, once your insurer analyzes the appropriate risk factors, they might be able to offer you additional policy savings in the form of discounts. Not every driver qualifies for every discount. However, if you do qualify, you can save a percentage on your premium, which is a perk in any circumstance.
Your Ahrens Insurance Agency representative is happy to help you compare your policy options to determine which one will offer you the best premium and ensure that you are receiving all available discounts. We can also help you set up a payment plan so that you can always afford to make your regular insurance payments.
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