You've seen the captivating ads from car insurance companies like Liberty Mutual, Allstate, and State Farm guaranteeing huge savings. So drivers just need to pick one randomly, right?
It's not that simple, unfortunately, as there are a whole bunch of unknown factors like your credit score, if you are a good driver, how old you are, and the crime level of your neighborhood, that all have an effect on the price. If you keep reading, we will teach you about the things that cause high insurance rates and hopefully give you enough understanding to have a good beginning to your search for cheaper coverage.
For veterans, one of the big things that are used to help calculate the annual cost of car insurance is where you choose to live. Regions with more people or even just more weather-related claims like Hialeah, Miami Gardens, and West Palm Beach tend to have higher rates, whereas areas with less crime or weather claims receive better rates.
The illustration below shows the highest-priced areas in Florida for retired military in which to purchase auto insurance.
|5||West Palm Beach||$2,679|
|20||Port St. Lucie||$1,975|
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Rate information is estimated as specific location information can alter premium rates noticeably.
The car, truck, or SUV you are insuring is one of the largest factors that determines if you can find low-cost insurance for retired military. Vehicles with higher performance, a lack of modern safety features, or a history of substantial liability claims will cost substantially more to insure than safer models.
The information below features car insurance rates for some of the more affordable vehicles to buy insurance for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda CR-V EX 4WD||$1,375|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$1,468|
|Ford Escape Limited 4WD||$1,498|
|Dodge Grand Caravan SE||$1,503|
|Chevrolet Silverado LS Regular Cab 4WD||$1,523|
|Ford Edge Limited AWD||$1,533|
|Chevrolet Impala LTZ||$1,538|
|Ford F-150 XLT Super Cab 4WD||$1,533|
|Honda Odyssey EX||$1,558|
|Nissan Rogue S 2WD||$1,563|
|Volkswagen Jetta 2.0T Station Wagon||$1,580|
|Dodge Ram Quad Cab ST 4WD||$1,585|
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Above prices assume single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Florida minimum liability limits. Discounts applied include safe-driver, claim-free, multi-vehicle, multi-policy, and homeowner. Estimates do not factor in Florida location which can increase or decrease rates considerably.
Looking at the numbers, we can conclude that vehicles like the Toyota Prius, Honda CR-V, Jeep Wrangler, Ford Escape, and Dodge Grand Caravan are most likely to be the most affordable vehicles to insure for veterans.
Locating cost effective auto insurance is not easy, and figuring out which companies have the lowest-priced auto insurance rates for retired military in Florida takes even more rate comparisons. Each company uses their own method for determining prices, so let's take a look at the auto insurance companies that tend to be cheaper in Florida.
Find Cheaper Car Insurance for Vets
|Rank||Company||Cost Per Year|
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USAA has some of the best car insurance rates in Florida at around $948 each year. Electric, Amica, Progressive, and Allied also qualify as some of the cheapest Florida auto insurance companies.
In the above example, if you are currently insured with Allied and switched to Electric, you could see yearly savings of roughly $214. Customers with Travelers could save as much as $214 a year, and Mercury policyholders might cut rates by $221 a year.
Understand that those policy rates are averaged across all types of drivers and the different vehicles they drive and and are not calculated with a price discount for retired military. So the car insurance company that has the lowest price for you may not even be in the list above. That helps illustrate why you need to quote rates from many companies using your own driver data and vehicle information.
How accidents and tickets impact rates
The common sense way to obtain good auto insurance premiums for veterans is to be a safe driver and avoid accidents and violations. The diagram below shows how traffic citations and accidents can impact insurance prices for each age group. The premium estimates are based on a married female driver, full physical damage coverage, $1,000 deductibles, and no discounts are factored in.
The data above shows the average cost of an auto insurance policy in Florida per year with no violations or accidents is $1,806. Get one speeding ticket and the average cost jumps to $2,112, an increase of $306 each year. Then add one accident along with the one speeding ticket and the yearly cost of auto insurance for retired military in Florida goes up to an average of $2,957. That's an increase of $1,150, or $96 per month, just for not paying attention while driving!
Liability rates compared to full coverage
Buying cheaper auto insurance is the goal of the majority of drivers, and one way to buy cheaper insurance for retired military in Florida is to not buy full coverage. The chart below compares annual premium costs with and without full coverage. The premiums are based on no claims or violations, $1,000 deductibles, single status, and no discounts are applied.
If we average the cost for all age groups, full coverage costs an extra $2,330 per year over liability only. A very common question is if it's worth it to buy full coverage. There isn't a steadfast formula for excluding comp and collision coverage, but there is a guideline you can use. If the yearly cost for physical damage coverage is 10% or more of the settlement you would receive from your company, then it might be time to consider dropping full coverage.
Why are you paying too much for Florida car insurance?
Florida auto insurance rates are determined by lots of factors that will increase or decrease your annual premium. Getting older, increasing liability limits, or getting a driving violation can cause premium changes that may make certain companies cheaper than others. And not only may your rating factors change, but companies amend premium rates multiple times each year to adjust for unexpected claims or profits. An extended period of higher than normal claims may cause rate increases, while long-term profits may produce cheaper Florida car insurance rates.
For instance, the graph below compares the cheapest car insurance in Florida for a 35-year-old female driver with no prior claims, no tickets, and great credit. When quoting prices based on her current rating profile, USAA quotes the lowest car insurance rates in Florida at $948 per year. This is $1,500 less than the average policy premium paid by Florida drivers of $2,448. Electric, Amica, Progressive, and Mercury are the remainder of the best Florida auto insurance companies.
Now we will give the driver from the above example a couple of claims, slightly worse credit, and an imperfect driving record. Since each insurance company has a different formula to set premium rates, comparing quotes may now present a new list of the cheapest companies as shown below.
USAA now has the cheapest car insurance in Florida with Travelers, Esurance, State Farm, and Auto-Owners also having competitive pricing. This example shows why consumers need to compare many different companies when trying to find the most economical auto insurance rates for retired military. Prices are determined by many factors and can decrease or increase without notice, so the cheapest company the last time you shopped around may now be priced much higher than other options.
How to find more affordable car insurance for retired military
It's not impossible to find cheaper rates, and here are some money-saving solutions that can help Florida drivers find cheaper coverage.
- Avoid preventable accidents
- Safer vehicles cost less to insure
- Raise your physical damage coverage deductibles
- Full coverage is expensive so only insure older vehicles for liability only
- Better credit scores save money
- Maintain a clean driving record
- Ensure you have the best deal by shopping around regularly
The last idea is incredibly crucial, as was emphasized in this write-up. Prices change frequently, so drivers shouldn't be reluctant to switch companies if a better deal can be had. Many drivers have brand loyalty and that's fine, but it isn't a good idea if it's costing you money that could be used for better things. It only take a few minutes to compare rates and find cheaper insurance for retired military.