Best auto insurance in Florida with bad credit

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Your credit score can fluctuate based on many factors. Not all changes to your credit are due to delinquencies — some are normal events, such as a month of higher spending on a credit card for an emergency or a hard pull to apply for a new car loan. However, depending on your credit score before the event, a drop in your FICO could affect how much you pay for car insurance.

Unlike California, Hawaii or Massachusetts where credit is not allowed to be a determining factor for car insurance premiums, Florida insurance companies can use credit as a factor in determining how much you pay. However, there are options if you cannot afford to pay higher premiums based on your credit history. You could find car insurance for poor credit in Florida to save money. Finding cheap car insurance for bad credit in Florida is possible with a little extra work, but the savings could be worth the effort.

Average cost of full coverage car insurance in Florida by credit
Bad credit car insurance in Florida tends to have high premiums. You may be surprised to find out that your premiums may be higher if you have a low FICO than if you caused an accident. Take a look at how your premiums could change based on your credit score:

Provider Poor credit Average credit Good credit Excellent credit
Florida average $5,817 $3,032 $2,364 $2,161
National average $3,873 $1,865 $1,674 $1,487

Best car insurance for bad credit in Florida

Florida drivers already pay higher premiums than average. A vehicle owner with good credit pays $2,364 per year on average. One with poor credit could see a jump of nearly two and a half times in annual premiums to $5,817 per year.Bad credit car insurance Florida premiums are nearly $4,200 more per year than the national average for someone with good credit.

It is difficult to assess how much your rates will increase until they actually do. Carriers may classify policyholders differently. However, using Equifax’s, Experian’s, and TransUnion’s credit scoring systems could give you a good overview of where you may fall in car insurance rates based on credit. Scores under 580 are considered “poor.” Under 670 may be seen as “average.” And 670 or higher is “good,” with 800s reserved for excellent credit and the cheapest car insurance rates.

Why does my credit affect my car insurance rates in Florida?

The Insurance Information Institute (III) explains why your credit could affect your insurance premiums. According to the III, “Studies suggest that how a person manages his or her financial affairs, which is what these scores indicate, is a good predictor of insurance claims.”

Recent Florida statutes regulate the use of credit history in providing property coverage, such as vehicle and home insurance. An insurance company is not allowed to restrict, deny or cancel coverage based solely on credit history, or request a credit report because of your race, gender, income, marital status and more. However, the Florida statutes do allow carriers to charge policyholders and applicants a higher amount based on the risk involved with poor credit.

The best way to avoid the skyrocketing cost of bad credit car insurance in Florida is by safeguarding your score — or working on improving it. However, improving your credit score takes time. You may not see a big enough difference to make an impact on your car insurance rates for several months or a year.

What other factors impact auto insurance rates in Florida?

It is important to recognize that your credit history is only one of several factors that impact your car insurance premiums. We published a True Cost report with information on how changes can affect your car insurance premiums. The most significant may be:

  • Driving record: Being at fault in an accident, having a DUI conviction or getting one or more moving violations such as a speeding ticket could also raise your car insurance premiums noticeably. In fact, Bankrate reports that a DUI leads to more expensive car insurance than having poor credit.
  • Your location: Some areas in Florida are subject to higher baseline car insurance rates than others based on the number of claims from local theft or accidents due to area road conditions.
  • Vehicle type: Some cars are cheaper to buy insurance for. Three of the most expensive vehicles to insure are the BMW 330i, Toyota Prius and Toyota Camry.

How to get cheap car insurance in Florida with poor credit

There are ways to get cheap car insurance for bad credit in Florida. Consider starting with the following ideas to save on your premiums:

  • Shop around: Collecting quotes to compare from several carriers and switching providers may be the most effective way to save on your car insurance.
  • Review your credit score: You can collect a free annual credit report to examine. You may find errors that affect your score, such as an incorrect report from someone with a similar name or an account that has not been updated after you paid off the balance. Disputing errors could help you increase your credit score quickly.
  • Look for discounts: Most carriers have car insurance discounts that could lower your premiums. Your employer may have negotiated a special affiliation discount or you may earn one for being in the military. Safe driving and bundling home and auto coverage could earn you the biggest savings.

Frequently asked questions

Will I get a credit check when I obtain an insurance quote?

Insurance quotes are typically soft pulls, meaning they do not adversely affect your credit score the way a more in-depth hard-pull check would. You can get quotes from several carriers without having to worry about each inquiry generating a report on your credit file.

Why is car insurance for bad credit in Florida so expensive?

Carriers find that car owners with a history of not paying their bills on time statistically tend to file more car insurance claims.

How can I get cheaper car insurance?

The best way to save on car insurance is usually by getting quotes from several carriers to compare and choosing the best one. However, consider using more than the online quote tool. You may find additional discounts for switching providers or based on how many vehicles you plan on insuring. By doing this, you might be able to find the best car insurance for bad credit in Florida.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, varied credit tiers and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining auto insurance rates: CA, HI, MA

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance, real estate and international business journalist. Besides Bankrate.com, her work has been featured in Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and SimpleDollar.com. She owns and operates a small digital marketing and public relations firm that works with select startups and women-owned businesses to provide growth and visibility. Cynthia splits her time between Los Angeles, CA and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women’s NGOs about small business development.
Edited by
Insurance Editor