Insurance lobbyists are always trying to change Florida laws to make their business more profitable, regardless of the harm it may cause. Currently, Florida law forbids car insurers from setting rates in a territory as small as one ZIP code given concerns it could be abused to discriminate against low-income, minority or other customers, but there is a bill which cleared
A national consumer advocate called it “dangerous,” but
Bob Hunter, director of insurance for the
So, will this bill make a drastic change in our insurance rates. According to a recent article on CBS, it will. The CBS investigation found in many states your zip code has a dramatic impact on how much you pay, swinging the cost of coverage by hundreds, sometimes even thousands, of dollars. Actually, just changing the location of your garage by a few miles makes a massive difference, according to CarInsurance.com, which just completed a study of the impact of ZIP codes on rates. CarInsurance.com looked at 33,410 ZIP codes in the U.S. and calculated rates by surveying the nation’s six-largest auto insurers — Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm — based on coverage for a single 40-year-old male who commutes 12 miles to work each day, and drives a Honda Accord.
The average driver is not aware how much location impacts how much they pay for car insurance because there are many factors that go into setting your rate,” said Michelle Megna, managing editor of CarInsurance.com. “But a lot of car insurance companies use your ZIP code as a starting point when setting rates, looking at how many claims they get from that ZIP for theft, vandalism, accidents — and the cost of those claims.” The study’s bottom line: Moving a few miles, often even in the same city, can save or cost you a bundle.
Where you live in Florida matters a lot. You can see a map of sample car insurance rates for every city in Florida below.