Why did my insurance rates go up?

There are many, many factors that come into play when a company determines insurance rates. The first thing to consider is whether there have been any major changes to your policy. Changes in your driving record, your credit score, the type and number of vehicles, and the number of drivers, are just a few of the many factors that go into determining your rates.

The next thing to consider is the overall increased cost of living in Florida today. Everywhere around you, you've noticed the price of goods and services on the rise: whether it be at the grocery store, at the doctor's office, or anything else you use on a daily basis. These increases also include increases in the value of cars and the costs of repairs, and in medical services - the two things your insurance will mostly cover in case of an emergency.

Finally, the recent explosion in the rate of fraud crimes in Florida related to automobiles has affected prices throughout the region. Insurance companies have always monitored crime rates, traffic patterns, and other factors that can affect your risk of being involved in an accident or other event, but have now also begun monitoring each region's fraud rate as well.

If you have any further questions or are unsure why your rates have increased, speak with one of our agents. We'll be happy to look through your current policy, answer any questions you may have and find the best policy for your needs.

I recently purchased a car that is cheaper than the car I used to have. Why is the insurance more expensive?

No two vehicles are exactly the same, which explains why your rates my increase with your new car purchase. Some of the factors affecting your rates would include:

  • Cost of repairs. While the new vehicle may be worth less, the materials for repair may in fact be more expensive and harder to find.
  • Safety ratings may vary. These safety ratings affect how well the car protects its passengers in case of an accident, but also how much your vehicle may impact other vehicles involved in an accident.
  • Damage index. Again, how well your car can take a hit, but also the damage it causes to other vehicles in an accident.

If you're thinking about purchasing a new vehicle, make sure you talk with us before, so we can give you an estimate on the insurance rates for your different options.

I've recently moved, and my auto insurance rates went up. Why is that?

Insurance companies monitor the crime rates, rates of fraud, the number of accidents and types of accidents, and other factors for different areas and zip codes. This type of information is good to know if and when you're looking to move, so make sure you check before making your decision.

I hardly drive my car. Why doesn't my price go down?

Check with your insurance company. It may be charging you what's called a pleasure rate. With this rate, the company identifies you as someone that is not using the vehicle to travel to and from work (most accidents occur amongst people commuting). However, the pleasure rate doesn't change whether you're using your car to drive down the block to do groceries once a week, or you're traveling every weekend.

Advances in technology are allowing companies to experiment in other parts of the country with insurance rates that change depending on things like how you're using your vehicle, when you're using it, and how often you're using it.

My home is old, but it's built much better than any new house. Why are my rates so high?

Yes, you're house may have stood the test of time, but insurance companies look at the newest rules, regulations, and building codes available for the state. Many updates to these building codes took place after the latest set of serious hurricanes, Katrina and Wilma in 2005.

Bringing your home up to regulations can be extremely expensive. It's important to talk with your homeowner's insurance agent to find out what you can do to help your insurance rates. Things like updating your electrical and plumbing systems and installing burglar and fire alarms can help. Call or email us to discuss what other things you can do to lower your rates.

I have a very valuable piece of jewelry. Is this covered by my basic policy?

If you own a item of specific value, you can add an endorsement, called Scheduled Personal Property (SPP), which acts like a mini-insurance policy on the specified and listed item or add Extended Coverage, which increases protection on jewelry, watches and furs (up to an aggregate limit for all of these items together which is specified on your policy). Both provide all-risks coverage (except for a few exclusions). Many people get extra protection on jewelry, cameras, coin and stamp collections, fine arts, furs, golfing equipment, guns, musical instruments, outboard motor boats, and silverware/goldware.

What is the difference between replacement cost of my home and actual cash value?

The replacement cost of your home is how much it would cost to replace your home and its contents with new materials at current prices in the event of a loss. Actual cash value (ACV) is the value of your property at the time of a loss. ACV may be determined as the replacement cost minus depreciation.



There are a lot of misconceptions out there about insurance policies and what they cover. Speak to one of our independent insurance agents to get the answers to your questions.