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Auto insurance costs to rise 7% this year after 24% hike in 2023, new report finds

Auto insurance premiums in Florida, already the third highest in the nation, are expected to rise again in 2024, according to a new report from insurance comparison site Insurify. 

“After a year of staggering rate hikes, drivers will see smaller, but still significant increases in 2024 as the insurance industry stabilizes,” the report found. 

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Florida’s average annual full-coverage rate currently sits at $2,917, behind only New York’s $3,374 and Nevada’s $2,975. When comparing the Sunshine State’s average rate to the U.S., Florida’s premiums are 44 percent higher. 

“The average full-coverage insurance rate in Florida is $243 per month, influenced by severe weather events that strain the state’s insurers,” the report wrote. “In 2022, Hurricane Ian caused $109.5 billion worth of damage in Florida, making it the costliest hurricane in the state’s history, according to the NOAA. 

Already strapped insurance companies have struggled to stay profitable in the aftermath. The state now faces an insurance crisis, with multiple insurers increasing rates or halting new policies in the state. Among the companies that pulled back, Farmers exited Florida, affecting approximately 100,000 customers, and AAA declined certain policy renewals.”

The report cites rampant insurance fraud as a driving factor behind rising Florida rates in 2023. 

“In March, Gov. Ron DeSantis signed into law HB 837, designed to reduce frivolous lawsuits and fraud under Florida’s no-fault system. The state legislature passed a bill in May to reduce auto glass fraud, which surged by 4,000% between 2011 and 2021, according to the National Insurance Crime Bureau.”

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Among the key trends outlined in the Insurify report, researchers found nearly 62% of Americans reported their car insurance rates increased in 2023, with close to 22% reporting their rates increased more than once.

The report found the most popular ways drivers are cutting costs included lowering coverage limits and increasing deductibles. However, 45% reported they did not take any steps to reduce their premiums.

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