It was recently reported that Florida leads the nation is fraudulent auto insurance claims, with the Tampa Bay area reporting higher fraudulent claims than Orlando and even Miami. Most clients are seeing increases consistently with every policy renewal.
Here are a few simple ways to keep your auto insurance rates affordable.
Most people are unaware that having lower coverage limits such as the state minimum liability limit of $10,000 in bodily injury coverage per person and $20,000 for each accident is not the cheapest premium you can obtain. In fact, if you are shopping your auto insurance with carriers and currently carry this limit, most often you are actually being penalized. Insurance companies have determined there is a strong correlation between having low liability limits and the frequency of claims, especially fraudulent PIP claims and they have also determined that clients with lower limits are more costly to insure to due to fraud, expensive legal fees in fighting small claims, and a high frequency of policy lapses amongst other criteria.
Strategic Insurance Services has taken the stance to educate our clients that increasing their bodily injury limits reduces their premiums substantially over the years. Much of the public are also unaware that increasing your coverage from one limit to the next higher limit typically equates to a nominal difference in the premium. Many times our agency can even increase your limits higher than the current coverage while often offering a lower premium for the better coverage.
One should also know that if you have a lapse in your insurance coverage for even one day you are going to be penalized and pay a higher rate than if you have no lapse in coverage. To prevent a lapse we encourage to our clients that they set their auto insurance billing plan to an automatic monthly withdrawal from their checking account or even on their credit card or debit card or pay their premiums in full for the policy term. Most companies will give you a nice discount if you pay your auto insurance in full for the policy term.
Strategic Insurance Services represents 6 of the strongest, most reputable, auto insurance companies in Florida. We have the ability to quote all 6 companies in a real time comparison of rates and coverage’s. Quotes can also be obtained at your leisure through our website www.getstrategicins.com. The companies we represent include Travelers, Progressive, Safeco, Mercury, National General and Infinity.
Here is one last piece of information that you may find helpful. Although auto insurance companies do not pull a credit report to rate your auto insurance, an insurance score is pulled to determine characteristics about your credit habits and factored into determining your premium. One of the main criteria that is considered is if you pay your bills on time. The insurance companies correlate this with being responsible and having better driving habits which leads to less claims.
If you would like to discuss this information more in detail, please call our office and speak with one of our licensed insurance representatives.