Why Auto Insurance Rates are Skyrocketing in Florida

Floridians have a lot to deal with. The weather, wildlife, and other Floridians seem to be lurking around every corner, and auto insurance companies are taking notice. Due to the state’s hurricane risk and other factors, Florida drivers are seeing steep hikes in their car insurance rates, and the shift is showing no signs of letting up. Jalopnik highlighted a report from the Tampa Bay Times that shows how big of a problem there really is.

Some drivers reported auto insurance rates that have nearly doubled in the past few years, and many claim that their insurance payments now exceed their monthly car payments. Nearly all major insurers in the state have followed suit, with some increasing rates multiple times. The insurance industry cites inflation, high labor costs, and a shortage of materials as driving factors for the increases, but Florida also has a high risk of hurricane damage and a large number of uninsured motorists that add to the pile.

To be fair, The Sunshine State isn’t alone in seeing its residents’ auto insurance rates climbing. Nationally on average, auto insurance was up nearly 18% in July compared to a year ago. The frequency of crashes has increased in recent times, and the cost to repair the vehicles involved has skyrocketed. As the Tampa Bay Times reported, the American Property and Casualty Insurance Association recorded a 50 percent increase in the number of vehicle damage claims and a 40 percent jump in bodily injury claims between 2018 and 2022.

Thefts are also becoming more prevalent, with a 7 percent jump in 2022, thanks in part to the ease with which a thief can make off with some Hyundai and Kia models. Inflation has made parts and labor more expensive, with costs climbing almost 46 percent between 2019 and 2022. Insurers are losing money, leading to rate increases to cover costs.

While rates are climbing everywhere, Florida is still worse than most. The state has the fourth-highest vehicle theft rate in the United States, and insurance fraud from staged accidents is a significant problem. Hit-and-run crashes are particularly common, and Floridians see high rates of crashes and fatalities, capped off by the fact that more than a fifth of the state’s drivers are uninsured.

So, what can Florida drivers do to combat these skyrocketing auto insurance rates? Here are some tips:

1. Shop around for the best rates: With rates varying significantly between insurance companies, it’s essential to compare quotes from multiple providers. Take advantage of online comparison tools to find the most competitive rates.

2. Consider raising deductibles: Increasing your deductibles can lower your premium costs. However, make sure you have enough savings to cover the deductible in case of an accident.

3. Maintain a good driving record: Safe driving habits can help you qualify for discounts and lower rates. Avoid speeding tickets, accidents, and other traffic violations.

4. Bundle your policies: Many insurance companies offer discounts if you bundle your auto insurance with other policies such as home or renters insurance. Consolidating your policies can save you money.

5. Take advantage of discounts: Inquire about available discounts such as safe driver discounts, good student discounts, and discounts for installing safety features in your vehicle.

6. Consider usage-based insurance: Some insurers offer usage-based insurance programs that track your driving habits through a telematics device. If you’re a safe driver, you may be eligible for lower rates based on your actual driving behavior.

7. Improve your credit score: In some states, including Florida, insurers use credit scores to determine premiums. Maintaining a good credit score can help lower your auto insurance rates.

8. Review your coverage regularly: As your circumstances change, it’s essential to review your coverage to ensure you have adequate protection without paying for unnecessary extras.

9. Take defensive driving courses: Completing a defensive driving course can not only improve your driving skills but also make you eligible for discounts on your auto insurance.

10. Consider alternative insurance options: If traditional auto insurance rates are unaffordable, explore alternative options such as usage-based insurance, pay-per-mile insurance, or joining a car-sharing program.

While the rising auto insurance rates in Florida may seem daunting, taking proactive steps to find the best rates and maintain a good driving record can help mitigate the impact. By staying informed and exploring all available options, Floridians can navigate the challenging auto insurance landscape and find affordable coverage that meets their needs.