South Florida is currently experiencing one of the highest rates of inflation in the country. According to the U.S. Bureau of Labor Statistics, inflation in South Florida was 9.6% in May 2022, compared to a national rate of 8.3%.
As prices continue to rise, Treasure Coast residents are paying more for rent, groceries, gas, and now, auto insurance. Industry reports predict insurance companies will increase auto insurance premiums by 10% before the end of the year.
Understanding why auto insurance premiums are increasing may help you find ways to cut costs. In this article, we explain why rates are rising and share three ways you can save on auto insurance rates in 2022.
Why are auto insurance rates increasing on the Treasure Coast?
There are several reasons why auto insurance rates are increasing in St. Lucie, Indian River, and Okeechobee Counties. General inflation is impacting multiple areas of the auto insurance industry.
- Due to supply chain and labor shortages, it now costs more to repair vehicles.
- With higher gas and energy prices, the cost of running and operating an insurance company is higher.
- A national shortage of vehicles is inflating the cost of new cars, which is impacting vehicle replacement and rental costs.
How you can save money on your auto insurance premiums
As auto insurance rates increase on the Treasure Coast, here are three ways you can save money on your premiums.
1. Bundle your insurance policies
One of the simplest ways you can save money on your insurance premiums is to bundle your home and auto insurance policies, which means you purchase multiple insurance policies from the same company. Bundling your home and auto insurance has several benefits, including:
- Significant savings – Insurance companies that offer bundling tend to give a 5-25% discount on each policy.
- Simple policy management – Bundling typically allows you to manage multiple insurance policies in a single online account—you can access all your information in one place.
- Protection from cancellation – If you make an auto insurance claim or get a ticket, having another policy with the same company lowers the chance that your insurer will drop you.
2. Lower your mileage
Typically, people who drive less than 7,500 miles per year qualify for low-mileage discounts on their auto insurance. In fact, reports show that driving 7,500 miles annually could reduce your premiums 10%.
To help lower your mileage, consider carpooling, ride your bike or walk short distances, opt to work from home on select days if possible, and be strategic about your routes to consolidate trips.
After calculating your current average mileage, reach out to your insurer to see if you qualify for low-mileage discounts.
3. Ask you insurer about additional auto insurance discounts
Insurance companies usually offer additional discounts that help you save on your annual premium, such as:
- Accident-free and good-driver discounts – Most major insurers offer discounts (10-30%) to drivers who have had no accidents or traffic violations in the past three to five years.
- Taking defensive driving courses – Many insurance companies provide discounts to drivers who take defensive driving classes, and the discounts typically range from 5% to 20% off your auto insurance premium.
- Paying your premium in full upfront – If you pay your auto insurance premium upfront for the entire term (usually six months or a year), some insurance companies will reduce your premium by 3-5%.
- Enrolling in automatic payments – Most companies offer a one-time discount off your deductible of $50- $100 when you sign up for automatic auto insurance payments.
- Installing anti-theft devices – By installing multiple forms of anti-theft devices, you diminish your risk of theft and insurers may lower your rates by up to 25% depending on where you live.
The best way to know if you qualify for additional discounts is to contact your insurance company.
Do not reduce coverage to try to save money
Florida is currently seeing a significant increase in the number of car accidents, injuries and deaths due to hit-and-runs. The Florida Department of Highway Safety and Motor Vehicles reported the number of hit-and-run accidents in 2021 went up by 17%. Fatalities and serious injuries went up even more.
As auto accidents continue to increase in Florida, drivers should not reduce auto insurance coverage to save money. In the unfortunate you are involved or injured in an auto accident, if you have minimal coverage, it could cost you significantly more in the long run.
Learn more about why we strongly recommend adding additional coverage to your car insurance policy here.
Injured in an auto accident in Port St. Lucie, Fort Pierce, Vero Beach or Okeechobee?
Call Hoskins, Turco, Lloyd & Lloyd immediately at 866-930-6435
If you are involved and/or injured in a car accident in Port St. Lucie, Fort Pierce, Vero Beach or Okeechobee, the best thing you can do is call our office and speak with one of our car accident attorneys. Free of charge, we will set-up an in-person or over-the-phone consultation to help you understand your rights and discuss your next steps.
The car accident attorneys at Hoskins, Turco, Lloyd & Lloyd have over 40 years of experience helping thousands of injury victims and their families recover from serious accidents on the Treasure Coast. We’re experienced, local, and on your side.
Schedule your FREE case review by calling 866-930-6435