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Insurance Agent Reveals Truth About Auto

 Insurance Rates

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The main factor driving auto insurance rates in Florida is your credit history. Each insurance company our agency represents has 45 or more internal rate levels for each customer. When rating policies the first thing that happens is your credit file is looked at. About 15 years ago Insurance companies were looking at ways to make insurance more predictable and they started to notice that  a persons credit rating could predict if a person was more likely to have accidents.

The lower the credit score the more accidents occurred. They found a direct correlation that could be applied to anyone. The theory goes that when people have financial problems they tend to have more accidents. After writing alot of  polices over the last 15 years I have found that this way of underwriting auto insurance is very accurate.

Other considerations also come into play. Your current Bodily Injury Limit is very important. The higher limit you have on your policy the better your rates will be. Insurance companies find that customers who carry higher bodily injury limits have fewer claims. 

Tickets and accidents are the third leg of the rating system. Most preferred programs do not allow major speeding tickets or more than 1 claim. If your credit score is high many companies put less emphasis on your tickets. Young drivers are another interesting story. If you have young drivers, many companies rate you teen on every car in your home and some rate just on the car they drive. We take that into consideration when writing policies for our customers. Finally, the cars you drive have little significance with rates and the color also does not matter.

Nantz Insurance Agency 2770 NW 43rd St Ste C Gainesville, FL 32606 352-367-1050