Multiple factors causing continued increase in car insurance prices

TAMPA, Fla. — It’s a bill that most of us have to pay: our car insurance. We’ve heard from plenty of you, our viewers, saying that it seems like it’s just getting higher and higher these days.

Debra Mimmenger says she’s seen her car insurance bill go up by 30%. Some of you commented on our Facebook post about dwindling home insurance prices, asking to see when the car insurance prices will simmer.

According to the U.S. Bureau of Labor Statistics, the annual average of car insurance back in 2014 was $437. But almost a decade later, in 2023, it was $716.

For 2024, we’re seeing more increases and an average of $794 in January.

May’s average: $839.

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“My renewal is due in June, and I’m praying that it’s not that much,” said Mimmenger’s friend.

“Mine is in July, and I’m praying it doesn’t go over $600,” Mimenger said.

What’s worse for Floridians is that we have the second-highest average for auto insurance.

Bankrate estimates the average yearly cost for minimum coverage at $1,091. Full coverage in Florida averages $3,462 a year.

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Mark Friedlander with the Insurance Institute of America is currently monitoring our state of auto insurance.

“Unfortunately, we’re not seeing any rate relief in the near term. Let me kind of break it down. What are the factors? There’s several factors that are generating the high cost of auto insurance here in Florida,” he said.

Florida ranked third last year for auto fatalities. Because we have so many accidents, fatal or not, it drives our rates up.

Then there’s the rising cost of repairs. We’re also seeing a higher price in repairs for new cars. That’s because those cars now come equipped with cameras, sensors, and computers that cost much more to repair.

Cars are more expensive now, so if you total your car, it will cost more to replace it.

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Florida is known for severe weather, and everything from crashes due to poor visibility to flooding from severe storms has aided our higher insurance rates.

Florida has a high rate of uninsured drivers and is no stranger to crimes like car thefts and insurance fraud.

Then there’s the high rate of injury law in the state.

These all drive up car insurance prices in the Sunshine State.

“We can’t just point to one factor in Florida. There’s so many variables here, and it all adds up,” Friedlander explained.

So, what can consumers do to see some relief? I took that question to Friedlander.

“The good news is for consumers, Florida, like many states, has a very competitive auto market.”

He suggests taking advantage of discounts, like ones that bundle car and home insurance if you can, or the ones that cut you a deal if you allow it to monitor your driving habits like speed and braking.

He also suggests shopping around and comparing at least three quotes.

But until more relief comes knocking, the unfortunate truth is auto insurance is an expensive necessity.