Will my auto insurance rates change if I buy a new automobile?

In many cases – yes. Insuance companies price their rates based on many factors and the type of automobile you drive is one of those factors. However, that doesn’t necessarily mean that your rates will go up. For example, purchasing a new car with better safety features can actually lower your rates!

Financed cars require more insurance. Clearly, the amount of insurance you buy will affect the price of your policy. New cars that are financed through a bank will require you to carry a certain amount of comprehensive, collision and liability insurance – which means higher premiums. Purchasing a car outright gives you the opportunity to decrease those levels and save money on your premiums.

The state of Florida has minimum coverage requirements that you are required to carry. These minimum requirements include Property Damage of $10,000 and Personal Injury Protection (PIP) of $10,000. Additionally, if your car is bank financed, your bank will require you to carry Comprehensive and Collision coverages as well.