How Much Does Insurance Cost?
Prices for car insurance vary greatly between companies. The only way to know for sure you are getting a “good deal” is to compare quotes, for the same coverage options, from a variety of companies.
When does coverage begin on a new car insurance policy?
Coverage begins when the application is completed and the initial payment made. A new policy can also have a future effective date to coincide with the expiration of an existing policy.
What options should be considered when purchasing a new policy?
Make an informed decision by having all options explained when receiving a rate quote. Every state has minimum requirements. For example, coverage for PIP/PD, Personal Injury Protection and Property Damage Liability, is required on every Florida auto insurance policy.
When is the right time to shop for new car insurance?
Anytime can be a good time. Often consumers compare rate quotes when they receive a renewal notice for their existing policy. Also, when a change to a policy has a significant impact on price, such as adding a youthful operator, policyholders will shop.
What should I do first to compare auto insurance quotes with other companies?
The first thing to do is review your existing policy. Pay close attention to your coverage, limits, and deductibles. Compare auto insurance quotes from different companies for the same or similar options.
How do I cancel my current policy if I switch to another company?
Canceling your existing policy usually requires a signed request. Contact your company or agent for the exact procedure. Changing companies at the expiration of your existing policy usually does not require a signature.
How do I know if I am getting all the discounts I qualify for?
Ask about all available discounts. There are numerous discounts that can be applied to the rate quote, and it is not uncommon for one or more to be overlooked. Ask again!
Does my spouse have to be on my policy or can they get their own?
Your marital status will have to be disclosed on the application. Your spouse can be included or they can have their own policy. In Florida, as in most states, the spouse of the named insurance automatically receives the same privileges.
Can I make monthly payments on a new car insurance policy?
Yes. Most companies will offer you a discount if you pay in full. One notable exception is a Florida FR44 filing for DUI drivers. Florida does not allow this policy type to be canceled, and therefore companies will require payment in full for such a policy.
What method of payment can I use for a new car insurance policy?
The various methods for payment are: Check, credit card, debit card, electronic funds transfer, and cash. Not all companies accept every method of payment or every credit card. A cash payment is only possible at a local insurance office in person.
If I cancel my policy for any reason do I get my initial payment back?
If insurance coverage was extended to you for any length of time, even just one day, then only the unused portion of the payment will be returned. In Florida, a policyholder may not cancel in the first 60 days unless replacement coverage has been acquired, or the vehicle is sold.
If I buy a new policy and someone else drives my car will I be covered?
All household residents and/or regular operators of the vehicle must be disclosed on the application. If a friend, relative, or neighbor borrows your car infrequently, you generally have coverage. Less often, are policy types that only extend coverage to drivers listed on the application.
How much does credit affect my insurance rate?
Companies have a proprietary method of assigning an insurance score to each customer. This score is one of many characteristics used to place customers in different tiers or rankings with different prices. Information from credit bureaus helps determine the score.
Why do I pay more if I mail my insurance payment instead of using electronic funds transfer?
The savings a company realizes from electronic billing can be passed on to the customer. Also, companies historically have better retention (maintaining policy at renewal) when this method is used, motivating companies to provide a discount. How much does insurance cost is always impacted by the method of payment.
