If you're between the ages of 17-24 and live in Florida, chances are you pay a high premium for car insurance. Blame Florida and the drivers for this high expense. But there's a reason why it's high for you and cheaper for someone else. Despite my thoughts it being a scam insurance is required.
Wild Fact: Insurance companies invest your monthly premium in the stock market to maximize profits.
Why is it so Expensive?
Insurance premiums are determined by age, gender, the state you live in (Florida one of the highest), residential address, driving history, car make, year, model, and credit scores. Insurance companies look at younger age groups as the most riskiest to insure and that's why we all start high. According to Bankrate, the average annual full coverage premium for a male is $250 more per year than a female. Reason being, males are statistically more likely to speed, drink, and are deemed more risky than females. Companies check your current address for accidents, violence, robberies, flood zones, and other natural disasters to determine rates. The older your vehicle the cheaper your insurance except if the parts for the car are difficult to obtain. Companies check credit scores to determine how responsible you are as a driver.
Quick tip: Go online and get a quote with Geico (worked for me), State Farm, and Safeco (depending on where you live).
Car Guide
How to make it Cheaper...
Now you know the factors that impacts your monthly payments, here's how you make it cheaper. I went from paying $300 to $150 a month by switching to GEICO.
Increase your credit score as much as you can. Click here to do so.
If your parents or relatives are willing, ask them to add you on their policy. Cheaper on a family plan
Ask your agent
Every 3-6 months shop online and get a quote with different insurance companies.
Add special programs to your policy such as student discounts and Anti theft devices. Ask your insurance.
Remove or reduce certain coverages on your policy such as bodily injury, property damage, uninsured motorist, and increasing your collision deductible.
Be a safe driver with a clean history
Move to a safer neighborhood
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