Drivers everywhere continue to enjoy the benefits of low gas prices, and what are they doing to celebrate? They are driving more. It’s less costly to take a road trip now, rather than fly to another destination, so more drivers are taking to the streets. More cars on the road increase the number of traffic crashes which, in turn, translates into higher auto insurance rates.

Insurance rates are the cost of claims – and if the cost of individual claims rises and the number of claims rise, so must insurance to cover those increased costs. In 2012, the Florida Legislature passed reforms to the state’s no-fault auto insurance law, which were intended to reduce some of the fraud and abuse that led to higher rates. The reforms did work, as both the frequency of claims and the average cost of each claim dropped steadily – until the first part of 2015 when they started trending upward again. The timing of the uptick is no coincidence, and there are two causes: rising employment and falling gas prices. In January of 2015, gasoline prices were the lowest they’ve been in six years. The numbers of people in the workforce is also on the rise. More people working and driving means more collisions.

An opinion column says traffic accidents are on the rise and distractions are to blame. The National Safety Council estimated that motor-vehicle deaths in Florida for 2015 increased 18 percent compared to 2014. Florida crash statistics for the first quarter of this year are 13 percent higher than the same time period in 2015.

Our major cities seem to be increasingly congested. The bigger the county, the higher number of distracted driving crashes. Insurance rates reflect that trend.

Courtesy of http://www.insuringflorida.org/hit-and-run-crashes-still-problematic/

Hit-and-run crashes in Florida are holding steady; it is the same challenging problem it always has been. The Florida Highway Patrol reports more than 92,000 hit-and-run crashes in 2015. Those crashes brought 19,000 injuries and 186 fatalities. More than half of those fatalities were pedestrians.

Why do people run away from a crash scene? More often than not, they have had too much to drink and should not have been behind the wheel. Or, they may have a suspended license or let their auto insurance lapse, which is illegal, by the way.

Florida law requires drivers to stop immediately for any car crash in which there is injury to another person. Violating this law is a third degree felony punishable with up to a five-year prison stint (and a mandatory minimum of four years).

Owning up to your mistakes has always been the honorable thing to do. That doesn’t mean it’s always the easy thing to do. But it is – and always will be – the right thing to do.

Courtesy of http://www.iii.org/article/what-determines-price-my-auto-insurance-policy

The average yearly auto insurance premium is around $800, but there is wide variation around this average. Many factors can affect your premium, and they all help determine how likely you are to have an accident. Perhaps surprisingly, many of them do a better job than just your driving record. Not all companies use all of these factors, and some might use factors not listed here. Your premium may depend on, in no particular order:

• Your driving record.

The better your record, the lower your premium. If you have had accidents or serious traffic violations, it is likely you will pay more than if you have a clean driving record. You may also pay more if you are a new driver and have not been insured for a number of years.

• How much you use your car.

The more miles you drive, the more chance for accidents. If you drive your car for work, or drive it a long distance to work, you will pay more. If you drive only occasionally—what some companies call “pleasure use”, you will pay less.

• Where your car is parked and where you live.

Where you live and where the car is parked can affect the cost of your insurance. Generally, due to higher rates of vandalism, theft and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas.

Other factors that vary from one area or state to another are: cost and frequency of litigation; medical care and car repair costs; prevalence of auto insurance fraud; and weather trends.

• Your age.

In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.

• Your gender.

As a group, women tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs) and most importantly less serious accidents than men. So, all other things being equal, women generally pay less for auto insurance than men. Of course, over time individual driving history for both men and women will have a greater impact on what they pay for auto insurance.

• The car you drive.

Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car itself is major rate factor, the cost of repairs, and the overall safety record of the car. Engine sizes, even among the same makes and models, can also impact insurance premiums. Cars with high quality safety equipment might qualify for premium discounts.

Insurers not only look at how safe the car is to drive and how well it protects occupants, they also look at the potential damage a car can inflict on another car. If a specific car has a higher chance of inflicting damage on another car and its occupants, some insurers may charge more for liability insurance.

• Your credit.

For many insurers, credit-based insurance scoring is one of the most important and statistically valid tools to predict the likelihood of a person filing a claim and the likely cost of that claim. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.

• The type and amount of coverage.

In virtually every state, by law you must buy a minimum amount of liability insurance. The state required limits are generally very low and most people should consider purchasing much more than the state requirement—the recommended amount of liability protection is about ten times the average state minimum. If you have a new or recent model of car, you likely will also buy comprehensive and collision coverage, which pays for damage to your car due to weather, theft or physical damage to the car such as being hit by a tree. Comprehensive and collision coverages are subject to deductibles; the higher the deductible, the lower your auto insurance premium. While there is no legal requirement to purchase these coverages, if you finance the purchase of the car or you lease it you may be required by contract.

Perhaps just as important, insurers NEVER use race or religion to set rates. Such practices are illegal. Insurers believe them to be abhorrent as well.

Courtesy of http://www.insuringflorida.org/florida-drivers-need-protection-from-uninsured-motorists/

With driving come a number of responsibilities. Some people take these responsibilities seriously. They drive the speed limit (or relatively close to it). They do not text and drive, and they use a hands-free device if they talk on a cell phone. They follow the law by purchasing automobile insurance. And, then there are people who do none of these things. This means you need to pick up their slack.

Let me be blunt. You need to seriously consider purchasing bodily injury liability and uninsured motorist coverage in Florida. Yeah, it’s optional. But the Insurance Research Council estimates that 24 percent of Florida drivers are uninsured. That’s scary all by itself. What is scarier is that there is no way to know how many people buy only the minimal coverage that is required by law. That means they have $10,000 in personal injury protection (PIP, also known as no-fault insurance) and $10,000 in property damage liability. You already should know that the PIP system is run amok with fraud (which is a story I’ve told). And, you also know that if someone is severely injured in a car crash, it does not take long to surpass $10,000 in medical bills. If the guy or gal that hits you has no insurance, those medical bills are all yours – – unless you buy uninsured motorist (UM) coverage. This also covers you if the at-fault driver is an underinsured motorist (UIM), an equally likely scenario is this dismal economy, or a hit-and-run driver, which is also (unfortunately) not farfetched.

Simply, UM/UIM coverage makes your insurance company responsible for the damages that would otherwise have been the responsibility of the at-fault driver. Get out your auto insurance policy now, before you drive another block. In it you will find some BIG TYPE that tells you that this is VALUABLE COVERAGE that PROTECTS YOU AND YOUR FAMILY. Insurance regulators require by statute that insurers put this wording in BIG TYPE in your policy for good reason. It’s for your protection. You can reject this coverage but should know that there are better than one-in-five odds that the Florida driver who hits you is not insured. So, are you lucky – or wise?

Many drivers don’t think about their insurance coverage until after they have an accident and call their insurance company to file a claim to help pay for car repairs, a rental car and other expenses.

Unfortunately, many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of a replacement rental car after an accident. Since the average car is in the repair shop for two weeks after an accident, it can cost as much as $500 to rent a replacement car. But, some insured drivers pay little or nothing to rent a car because of an inexpensive but often overlooked option known as rental reimbursement.

Rental reimbursement coverage is available for only $1 or $2 a month with almost every auto insurance policy, but it is bypassed frequently by those who believe they will not have a car accident or those shopping only for the lowest cost premium. The cost of a rental replacement car adds up fast, so even if you don’t have an accident for eight or nine years, the coverage pays for itself when you need it most.

Sometimes working out the details of a claim with the auto insurance company can take time. Even if the accident is the other driver’s fault, you may have to wait several days or longer to get the other insurance company to agree to pay for a rental car. With your own coverage, there is no waiting.