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Auto Insurance in Florida Lowest in Six Months

Auto Insurance in Florida Lowest in Six Months

Small red cars in hands

A recent study by InsuranceQuotes.com revealed that auto insurance quotes can vary month to month by up to 48 percent. This dramatic rate was uncovered by the group's year long study of insurance in Hawaii, but rate variance was found to be high in a number of states. "What's most interesting is that there's no discernible pattern to detect here," Insurance Information Institute (III) spokesman Mike Barry said. "It appears as though the trend lines are all over the place, which doesn't really lend itself to a clear-cut reason or hypothesis for why that's the case."


Cheap car insurance right now
Analyzing the study, Fox News affiliate WFLX found that Florida auto insurance was the lowest this January, down from the high for the year experienced last July. While Florida's rates didn't vary as much as Hawaii's during this time - only 6.5 percent - the InsuranceQuotes.com study pegged Florida's variability at 22.5 percent, higher than in many other states. This means that now may be the best time to shop around for cheap car insurance, in case it goes up.


Reasons for the variance
InsuranceQuotes.com referenced a statement put out by The National Association of Insurance Commissioners (NAIC), detailing reasons for general auto insurance variability.

  • Risks and costs for insurers vary state by state. This means that the claims an auto insurance company faces in an urban environment differ from those it encounters in a rural environment, and those factors are subject to change.
  • Weather patterns also contribute to rapid changes in rates. Extreme weather in one state might increase the number of claims presented, for example, causing auto insurance rates to rise. 
  • Changing economic or business conditions could also cause car insurance quotes to move up or down.
  • Changes to a state's laws could cause major shifts in the way an insurance company calculates risk. Proposition 103, for example, passed in CA in 1988 and dictated that car insurance companies couldn't discriminate based on economic factors, like a driver's credit score or college degree.

December the cheapest month overall
While January has been the cheapest month for Florida car insurance this year, the report indicated that December was the best month to buy car insurance nationwide. The national variance in car insurance was found to be significantly lower than in many states - only 7.5 percent. Meanwhile, nationwide the most expensive month to buy car insurance was March.

According to Eli Lehrer, president of The R Street Institute, a possible explanation for the rise in January's car insurance rates in some states is due to the start of the fiscal year. A lot of rate increases and rating plans go into effect in the new year, meaning that many states see an uptick after December. In states without much car insurance regulation, however, there's nothing particularly important about January, Lehrer explains, because rate changes can go into effect whenever the insurer decides.



 
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