Auto insurance rates increasing, but there are ways to save
CORAL SPRINGS - If you have not yet received your auto insurance bill, you may be in for a surprise.
Many South Florida drivers are seeing rate increases, even if they have spotless records.
CBS Miami has been following one driver who began to see the hikes last year.
Retired special ed teacher Hal Krantz and his wife drive very little and haven't had any incidents and yet their insurance went up last year.
When we talked to Krantz over the summer he told us he had switched insurance carriers and was saving about $600 a year, but part of the deal was agreeing to install a tracking device on his windshield.
That device measures speed and stopping. Insurance companies use that information to decide whether your rates will increase or stay where they are.
"Sometimes, I feel like it's big brother," says Krantz.
When we first talked to Krantz last year, he was dealing with a hefty car insurance increase - more than a thousand dollars for the year - even though he drives little and has a clean record.
Krantz said when he began shopping his policy around he found some companies were offering special rates.
"It's cheaper to go with a new company even if it's every six months because you get special rates," he said.
The Insurance Institute which tracks rates said the average cost of full coverage in Florida now stands at $3,430 a year.
That's 51 percent higher than the national average which is $2,278 a year.
"It's very expensive," said Debbie Iten, who has been writing insurance for 34 years.
She says factors driving up the rates in Florida include, fraud, floods, hurricanes, theft of catalytic converters, and the decision to total a car because of a lack of parts.
After that, it depends on your zip code, your age, marital status and credit score.
If you have a teenager on your policy it's even worse.
"Your rate is going to go up substantially. A lot of times it will double," says Iten.
But if you want to save, there are strategies to try to bring your premiums down.
There is a 'good grade' discount for teenagers. You can raise your deductible. Reduce coverage or agree to a driving monitoring system.
"There are carriers starting to write again and a couple are asking for rate reductions, so towards the end of the year, we will see some changes," said Iten.
Hal Krantz is hoping that will happen. He's not sure if his monitoring device will continue to guarantee him a lower rate.
"I'll see when they send me my new bill," he said.