Do Florida motorists really need to buy expensive car insurance?

Americans spend as much $815 a year for car insurance – and some people pay as much as $1,500!  But is it really necessary to go for an expensive plan? Can you save money and still get the protection you need? Here’s what you really need to know (and pay for) to get good car insurance in Florida.

HOW MUCH INSURANCE COVERAGE DO YOU REALLY NEED? 

Naturally, the more coverage you get, the more expensive your insurance plan will be. For example, some of the better insurance plans will give you over $100,000 in liability coverage. Considering that a bad car accident can result in critical injuries that will require extensive hospitalization and possibly physical therapy, that’s actually a smart move. 

If you’re driving a new car with an expensive paint job, you’ll also want car insurance that can cover any damage or repairs. And if you’re a new driver, it makes sense to protect your back just in case you scratch somebody’s car while parking (hey, it happens to even the best of us!)

But there are also situations where you don’t need to get extensive coverage. For example, if you’re driving an old car that’s already got a lot of dents and scratches, you can go for cheaper car insurance. The logic is that if the car is extremely damaged or even totaled in an accident, the maximum amount you can get from any car insurance in Florida is the current market value of the car. It’s not worth spending big bucks on a plan that will only payout a couple of hundred dollars at best.

WHAT AFFECTS THE COST OF CAR INSURANCE IN FLORIDA?

When you look at different insurance quotes you’ll see how wide the price range can be. Why are some car insurance plans so cheap, while others are so expensive, even if they offer very similar coverage?  

The cost of a company’s car insurance depends on a lot of factors. For example, more well-known brands will spend millions on marketing (those celebrity testimonials and video ad placements don’t come cheap) and the overhead of several branches. Smaller insurance companies have lower operating costs, and may also offer better rates to attract customers. 

Insurance companies can also charge higher but offer other useful services and amenities. For example, there are providers of car insurance in Florida that run a hotline you can call if you need roadside assistance. Others treat their customers to perks at partner establishments – for example, discounts at automobile accessory stores.  

WHAT SITUATIONS LEAD TO HIGHER INSURANCE PREMIUMS? 

If you have a history of traffic accidents and altercations, or have made numerous insurance claims, you may be seen as an “insurance risk” and made to pay a higher rate. In some states, poor credit history can also affect your insurance premium.  

SO DOES “EXPENSIVE” REALLY MEAN THAT IT’S BETTER?

Car insurance in Florida doesn’t have to be expensive, but certain factors can lead to an increase in price. Weigh the costs and benefits to decide on what package will give you the best value for your money.