Florida mandates that if you own and operate an automobile, you must carry Florida auto liability insurance, at least the minimum required. Sounds simple enough until you get your insurance quote and find the premium for the required auto insurance is significantly higher than you imagined. Not until you call your Florida independent insurance agent did you find out that various factors contribute to the amount of your insurance rate. Find out whether your insurance score affects your auto insurance premium.
What is an Insurance Score?
You may hear both “insurance score” and “credit score” used in the same context when it comes to your Florida insurance auto rate; however, they have their differences. First of all, your insurance score is a prediction, based on your past history, of how likely you are to have an auto accident or file insurance claims, where as your credit score is the prediction of how likely you are to pay your bills/loans and keep your credit balances at a diminished amount. Because your past history is a reflection of your future, Florida auto insurers use your past information to predict the type of risk you will be to them down the road.
Your Insurance Premium May be More Involved than You Thought
Running up credit cards, paying the mere minimum on your credit balances, defaulting on loans, filing bankruptcy, or not paying your bills on time are all factors that could cost you notably more money in the future as all this impacts your auto insurance premiums for a required Florida auto liability insurance policy.
Florida auto insurers take a look at various factors such as your past accident history, current credit report, and past number of insurance claims filed in an effort to predict what the future holds in terms of the likelihood of your having an accident, filing a claim, or paying your insurance premium on time, or at all. It breaks down to the higher the risk, the more costly the premium.
It’s Never too Late
Working to improve your insurance score will enable you to afford the type of Florida auto insurance you need in the future. Obviously, there are ways to improve your insurance score and you can start with:
- Paying your bills on time
- Reducing your credit card debt
- Avoiding multiple credit card applications
If your insurance score is negating an affordable auto insurance premium, contact your local Florida independent insurance agent to discuss any additional ways you can improve your insurance score to obtain the right type of auto insurance protection you need within your budget.
Ideal Insurance understands your needs for securing the right type of Florida auto insurance protection you deserve at an affordable rate. Contact us at 941-921-2102 with any questions you may have regarding your insurance score, tips to improve your insurance score, or your current Florida auto insurance policy needs. Don’t wait! Call TODAY!