Where you live can affect your car insurance rates as much as your driving record does.

Where you live in the country will determine your car insurance rates

As we have talked about many times before on this site, insurance companies base their car insurance rates off a number of different factors. Some you have control over, like your driving record, and some you just don’t. One of the biggest factors that you have no control over is the area that you live in.

Insurance companies use statistics to chart the factors that would eventually lead to claims in geographical areas. The higher the chance that a vehicle in a certain location would have a claim reported on it, the higher the car insurance rate will be for that area. So, unless you want to contact every insurance company in the nation to find out where they charge the cheapest rates and then move there; you really have no control over this.

What Increases Car Insurance Rates in a Location?

A location will see increased car insurance rates whenever there is a greater chance of a situation happening that a client will have to report a claim on their vehicle for. Locations that have high crime rates have a higher chance of a vehicle being stolen or vandalized. Locations that have a high number of irresponsible or less experienced drivers have greater chances of an accident in general happening.

Also locations that have roads with high speeds or high populations of drivers have a higher chance of a serious, possibly fatal, accident happening. This last category can have the greatest affect on insurance premiums. Serious accidents with injuries and fatalities are going to be the most costly for an insurance company in terms of the amount paid out on a claim. 

All of these situations and factors come into play when an insurance company is setting the car insurance rates for a certain area. They then have to submit a request for the rate to be approved by the Department of Insurance or Insurance Commissioner in the state they are setting the car insurance rates in. Until these rates are approved, they cannot begin to use them.

Cities that Would Have Higher Car Insurance Rates

The following 15 cities made the list as the most dangerous cities (population of 150,000 or more) to drive in according to information from the National Highway Traffic safety Administration (CNBC.com ).  This information was based on the number of car accident related deaths compared to population, which is just one of the factors that insurance companies use to calculate their insurance rates.

Even so, the people that live in these cities most likely pay higher car insurance rates than a person living somewhere else.

1. Fort Lauderdale, FL.
2. Orlando, FL.
3. Augusta-Richmond, GA.
4. Little Rock, AR.
5. San Bernardino, Ca.
6. Salt Lake City, UT.
7. Chattanooga, TN.
8. Jackson, MS.
9. Memphis, TN.
10. Lubbock, TX.
11. Jacksonville, FL.
12. St. Petersburg, FL.
13. Tulsa, OK.
14. Birmingham, AL.
15. Oklahoma, OK.

Does anyone else notice that there is one state in particular that makes a repeat appearance multiple times on this list? To think, I’ve always been worried about driving in Southern California.

Cancellation dates and insurance coverage dates may not coincide, but if you are on a monthly payment plan your insurance should have been paid in advance.

Sometimes the billing on your policy is just not calculated correctly by the company.

How insurance companies calculate your monthly insurance billing can be very confusing.  First, they usually want you to pay for two months down when you start. This is because with monthly billing plans the insurance company is going to have you pay a month in advance. 

Second, your billing due date will most likely not coincide exactly with how much insurance you have purchased.   For example you may make your payments on the 1^st of the month, but your monthly insurance coverage may run from the 20^th to the 20^th if each month.

Still, being on a monthly payment plan you should be paying in advance.  If you have cancelled your insurance and the insurance company is saying that you still owe them money then one of two things may have happened.  One, the billing system does not have the correct or current cancellation information.  Did you get a cancellation notice from the company to verify cancellation and what date did it have on it?

Two, the billing is not accurate.  You need to contact the insurance company and ask why you are still being billed for a cancelled policy.  If they tell you that you owe them for insurance coverage prior to your cancellation date, challenge them on it.  Make them provide you with a breakdown of all the payments that you have made and the time period of coverage that the payments covered.

The student agents learn an important lesson about distracted driving and their role in helping safe drivers get better rates.

Summary

Commercial opens at the entrance of the University of Farmers campus with bells ringing.

Professor:  Distracted driving, it accounts for 25% of car crashes.

We see a boom box fall from the sky and the distractions for the student agent all start.

Professor: Music, cell phones, food; the list goes on.

Student outside of the car: This is why safe driving is so important.

Professor: Correct.

Student in car: That’s why the best agents help safe drivers get a lower rate.

Hot coffee is poured into the lap of the student driving the car

Professor: Exactly.

More distractions, including a “Saturday Night Live” type friend jumps into the front seat of the car rocking out to the music.

Student driving crashes the driving simulator into a stop sign after glancing over at the passenger in the front seat.

Announcer: We are Insurance

Chorus: We are Farmers

Commercial closes with Farmers logo and the types of insurance that they provide.  On the bottom the only contact information is farmers.com.

Point of the Commercial

Most of the series of Farmers’ University commercials are telling potential Farmers’ customers that Farmers’ agents are highly trained in insurance. This particular commercial highlights not only that agents help good drivers that don’t drive distracted get good rates, but also the dangers of distracted driving.

With how dangerous and more common distracted driving has become, you could say that this is a Farmers’ commercial and a public service message all rolled into one.

What They Want you to Do

With the only contact information at the end of the commercial being the Farmers’ website address, they want you to visit their website. They don’t encourage you to get a quote from them or to contact your local agent in this commercial. So they are really not asking you to do anything, just letting you know about distracted driving, what lines of insurance they write and also where to find them online.

My Opinion

This has to be my new favorite University of Famer’s commercial. While Farmer’s is reaching for funny in most of their other commercials like this, they have never quite made it (in my opinion). But, they hit it head on with this one and all while seriously talking about a very important topic.

The funny thing is that I am concentrating so much on watching all of the different things that are going on while the guy is doing the driving simulation that I am too distracted to listen to the commercial. I had to close my eyes just to pay attention to what they were saying. I guess it’s a good thing that I am not driving at the moment.

Of all the distractions that they show, the lipstick on a pole is the one that gets me laughing. Which distraction is your favorite?

Giving this one a definite thumbs up!

Florida car insurance is mandatory to be able to drive, but the coverages you have to have are just a little different than other states.

Even if you don’t live in Florida, you may have to purchase Florida car insurance.

Just like every other state in the nation, Florida car insurance is mandatory to be able to drive. But, most who visit the Sunshine State have no idea that even though they don’t live in Florida; they still have to carry Florida insurance.

They also don’t realize that mandatory Florida car insurance is different than what their state may require them to have.

Mandatory Florida Car Insurance Coverage

Most states require that you carry liability insurance on your vehicle in order to be able to drive. This means both property damage liability coverage and bodily injury liability coverage. In the state of Florida however, you only have to have one of these.

Florida does have two separate coverages that are mandatory for you to have to be able to drive just like every other state, but because of their “No Fault” laws one of them is different. First, you do still have to have property damage liability coverage to cover any damages that you may cause to another person’s property.

Second, you have to carry PIP insurance. In Florida, PIP is also known as “Florida No Fault Insurance” and to those of us that don’t live in Florida; we know it as Personal Injury Protection coverage. PIP covers injuries caused by an accident for the passengers in your vehicle, regardless of who was at fault for the accident.

The minimum limit that you have to keep on each of these coverages is $ 10,000. You are encouraged to carry higher limits, but $ 10,000 is all the state requires.

Florida Car Insurance Requirements for Nonresidents

Even if you do not live in the state of Florida you may still have to purchase Florida car insurance. If you are in the state for 90 days or more over the course of a 1-year period (365 days) you have to purchase the mandatory minimum Florida car insurance for your vehicle. Keep in mind that they count the 90 days as any 90 days you are in the state and not 90 days in a row.

Florida Car Insurance Requirements for Snowbirds

If you are one of Florida’s many winter residents, you have to maintain insurance on your vehicle even if your vehicle is in storage while you are not there. Florida’s car insurance laws state that any vehicle that has a Florida registration and license plate has to have insurance. To avoid having to pay insurance premiums on a vehicle that you are not using; you have the option of turning in your plate and registration when you leave the state to go back home.

Plates and registrations can be surrendered at the nearest Tax Collector’s office or Driver’s License office. When you return the following winter you can re-register your vehicle again.

Penalties for not Having Florida Car Insurance

If you don’t keep insurance on your vehicle, the state can suspend your license, your license plate and vehicle registration. To get these back you have to provide proof of insurance coverage in Florida and pay a reinstatement fee.

The reinstatement fees for failing to have Florida car insurance can range from $ 150 to $ 500.

Online insurance quotes are the new quoting tool for the internet savvy generation, but this doesn’t mean that these users are insurance savvy also.

Online insurance quotes are not for everyone.  This may sound surprising with how easy these online insurance quotes are to get, but getting the quote is easier than understanding the quote. Before getting an online quote you need to make sure you understand what you are buying.

Without getting a quote from an agent you are on your own to make sure that you have enough insurance coverage for yourself and your vehicle.

Online Insurance Quotes are Lonely

When you get online insurance quotes, you are going to be getting them alone. Yes, the website will help you choose what coverages are available, so you will have some information. However, rarely is there anyone to talk to when you are getting these quotes.

When there is no one to talk to, you have no one that can recommend what types of coverages are going to best protect you after listening to your circumstances. You also have no one there to explain what each coverage protects and why or if you even need it.

Worst of all, if you ever do have a claim or a problem with the insurance company, you are left dealing with everything on your own.

Online Insurance Quotes Can Be Cheaper

Since online quotes take the agent completely out of the picture, there is no agent sales commission being paid out by the insurance company. This means that they don’t add that extra cost to your insurance premium for you to pay.

This is a good thing for everyone that is looking at saving some money on their insurance premium.

Understand Your Online Insurance Quote

Now, when making you aware that you will be dealing with your insurance without the help of an agent it is not trying to discourage you from online quotes. I personally prefer online quotes compared to talking to an agent. However, I understand insurance and I know what my insurance needs are.

The best thing to do if you don’t have a clue about insurance is to sit down and get a quote from an agent. Have them explain everything to you and print out a quote for their company. If you need to understand better then take notes.

After you are done talking to the agent, go home and immediately start getting quotes online. After talking to an agent you should have a little more understanding of insurance terms and coverages. This will make choosing your coverages easier. You will also have the price of the quote from the agent in front of you so you can compare prices to see which quote is cheaper.

Regardless of the price of the quote, you need to go with what you feel comfortable with. If you prefer to pay a little more on your insurance for the assistance of an agent there is nothing wrong with that. There is also nothing wrong with passing up the agent if you feel comfortable enough with your insurance and getting those online quotes.

To save time and get multiple online insurance quotes by entering your information only once, try our quote aggregator.