Florida trails nation on important insurance discount

Survey finds Florida drivers paying steeper premiums despite higher deductibles

Insurance News

By Lyle Adriano

According to a survey by insurancequotes.com, Florida ranks among the lowest of the 50 states for the amount of savings to be had from auto insurance discounts.

The survey noted that those drivers who increase their auto insurance deductible from $500 to $1,000 should typically expect a national average of 8.5% off their premiums. In Florida, however, the discount reaches just 4.4%.

Only Michigan ranks lower than Florida, at 3.8% of premium savings. Massachusetts tops the list at 17.3%.

Based on each state’s average premiums, Florida’s motorists only enjoy $51 in annual savings. The figure is less than half of Massachusetts’ annual savings of $169.

Insurance Information Institute representative for Florida Lynne McChristian argued that the survey may not generally hold true, as “every driver is rated individually based on their own driving record, age, driving experience, locale and other factors.”

McChristian encouraged Florida drivers to try raising their deductibles to find better deals, but cautioned that they should not go beyond what they can afford.

Consumer Federation of America director of insurance Bob Hunter further suggested that even those motorists in states with low savings on premiums should aim for higher deductibles. Hunter reasoned that consumers get back only about 65 cents in claims for every dollar they pay, so they should minimizing the amount they pay to insurance companies.
 

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