Americans have been dealing with inflation costs since 2021, from food, gas, housing and now auto insurance. Unfortunately for Floridians, Florida has the highest rate of auto insurance right now according to an article that was written by the Washington Post. It also stated that Florida has seen an 88 percent increase since 2013. Agent and Owner Matthew Jones expands on the rising costs of auto insurance in Florida.
What causes auto insurance rates to rise?
The main causes for rising auto insurance rates include several factors such as accident frequency, litigation, fraud, and severe weather. When it comes to Hurricanes everyone thinks about their homes and how the insurance world is going to impact home insurance, but we forget that everything else is affected too including auto and boats. There were at least 40,000 auto claim lawsuits filed each month in Florida this year!
Due to the flooding damage caused by Hurricane Ian in 2022, Florida insurance companies were forced to raise auto insurance rates to compensate for the cost of claims of more than 14 percent, which is the highest nationwide. Right now, the average cost of auto insurance is about $3,100 annually. That is 50 percent higher than the national average average, of $2,000.
So how do we get our auto rates to decrease?
- If we are married, make sure the person with the best credit score is put first on the policy.
- Ask your agent if the carrier is offering an device discount.
- Pay your premium in full.
- Pick a deductible that is best for your pocket, if you can afford a $1,000 deductible, select that and don’t pick $500.
- Ask about a low mileage discount.
- Most importantly shop your auto insurance. Carriers change rates all the time based on what they have on the books as far as liability in the area. So, it’s important to stay ahead of the rates and always ask your agent to shop for you.
These steps may lower your premium, but not take you lower then what you use to pay as there’s no guarantee. These steps will help you achieve the best possible policy for you and your family.
