If you are a driver in Florida or anywhere for that matter, you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or simply add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for Florida car insurance customers below. Understanding these items can not only save you a lot of time and money on your Florida auto insurance, but it will also help you be better prepared in the event of a car accident.
1. How your Florida car insurance company determines your car's value after it has been declared a "total loss"
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:
If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within Florida, such as Jacksonville, Orlando or Tampa, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of Florida.
2. Florida requires auto insurance companies to pay for the sales tax when you replace your totaled vehicle with either a new or used car
You must make the request and not assume the auto insurance company will pay upfront. The tax will be calculated based on the pre-accident value of your car. So if you buy a higher priced vehicle as the replacement, the tax will be based on the pre-accident value, not the new price.
3. In Florida, you can claim a diminished value claim
A diminished value claim means that regardless of how well repairs have been done to a car that was in an accident, the accident itself lowers the car's value. In doing so, the value of the car is less than the exact same car that was not in an accident.
As a Florida resident, you can file a claim for the lost value and there is a chance you will get back a diminished value payment. In the past, successful cases have been made against the at-fault driver's insurance by a third party.
4. When switching car insurance companies, you must cancel your insurance policy first
Though it is possible to cancel your coverage at anytime, it is important to note that many insurance companies require a written statement, including the date of termination, in order to officially close your car insurance policy. If you do not do this, and you receive and ignore the next bill, your policy will be canceled automatically by the insurance agency for delinquency of payment. The downside to this automatic cancellation is that it will show up on your credit record, which could potentially impact your credit score!
The safest thing to do when switching car insurance companies is to call your company and let them know that you are canceling your policy. The company will send you a cancellation request that needs to be filled out and sent back.
5. Adding a teen to your car insurance policy
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, only when they receive their license. On the other hand, if you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered; however, your insurance company may charge you back premiums from the date your teen received their license.
For your Florida teen to begin the process of receiving their license, they must complete the following steps:
- Pass the Drug Alcohol Traffic Awareness course (driver's education course) and receive their Driving Eligibility Certificate
- Take and pass the vision and written test
- Receive their Learner's Permit
- Practice driving with a parent or guardian for one full year
- Obtain their Operators License once they turn 16 or 17 years old
- Practice driving without a supervisor
- Obtain their Class E Driver's License once they turn 18 years old
This process is for first time drivers who are at least 15 years old, but not yet 18. To ensure that the teen driver receives ample time to practice and to offset the number of accidents that involve teen drivers each year, Florida has different privileges for each provisional license:
Learner's Permit
When the teen is at least 15 years old, they must take and pass the Drug Alcohol Traffic Awareness course (driver's education course) to receive a driving eligibility certificate. They can then take the written knowledge, vision and hearing test to obtain their Learner's Permit. The teen driver must always be accompanied by his/her legal parent or guardian, or by a licensed passenger who is 21 years of age or older.
Operator's License
Teens are eligible for their operator's license after driving with their learner's permit for at least 12 months with no traffic convictions. If they have convictions, the one-year mandatory learner's period will restart, and they will not be eligible for an operator's license until 12 months later. In addition to these requirements, Florida teens must pass a driver's skill course.
Class E Driver's License
Florida teen drivers are eligible for the Class E Driver's License once they turn 18 years old. Under this license, teens have full, unsupervised driving privileges.
To learn more about Florida teen driver laws and regulations, please visit the Florida DMV.
6. Paying in installments may increase your bill
"Fractional premium" fees are usually charged when you divided your annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fees are. Always ask when applying for a new policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdrawals the funds right from your checking account. This may help eliminate processing fees while helping you stick to your budget.
7. How much does your car model affects your premium
The auto insurance company premium rating system for cars is on a scale from 3 to 27. The ratings are established by the Insurance Services Office (ISO), and the higher the number your model has, the higher your premium will likely be. These numbers are only available to auto insurance companies - so, no luck trying to find out your car's number before you purchase your car. But you can contact your insurance company for a quote before you buy.
8. You'll pay for someone else's bad driving
If you loan your car to someone and they end up crashing it, you will have to file a claim with your insurance company. As a result, you will have to pay your deductible (or any that apply) and your rates could potentially increase. If your car is taken without permission, you are typically not held liable. If the driver is uninsured and causes damages exceeding your policy limit, the injured party may come after you for medical or property-damage expenses and not your friend.
9. Personal property in your car isn't covered by your auto insurance
Stolen or damaged items from within your car are not covered by your auto insurance policy. Most policies will only cover smaller and less expensive items like CDs, but if you carry more expensive things, you will want to consider adding a rider to your home insurance policy. Keeping photos or video of your items is also a good idea. If something is stolen from your car, you may have to file a claim on your home insurance if you do not have a rider in place.
Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That's because Florida car insurance rates are influenced by Florida's geographic location and its state laws. With that being said, it is always a good idea to shop around and compare the rates of various auto insurance companies. To assist you in the process Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest auto insurance coverage for your budget.