TAMPA, Fla. – Families in Florida are grappling with the double impact of escalating home and car insurance rates, creating a financial strain that can be attributed to various factors, including inflation and a surge in driving post-pandemic.
Bob Passmore from the American Property Casualty Insurance Association highlighted the direct correlation between rising costs at car dealerships and repair shops and the increased expenses in auto insurance. He emphasized the substantial inflation witnessed in the past year, further exacerbating the situation.
The surge in the number of drivers on Florida’s roads post-pandemic is another contributor to the escalating rates, leading to a higher frequency of accidents. Despite this being a nationwide phenomenon, Florida stands out with disproportionately high car insurance rates.
Research conducted by the Washington Post and FINN America revealed an alarming 88% increase in Florida’s car insurance rates over the last decade. The state’s vulnerability to severe weather events, exemplified by recent hurricanes such as Irma, Ian, and Idalia, has significantly contributed to the spike in losses.
Climate change is also factored into insurance companies’ risk models, underscoring Florida’s heightened susceptibility to future storms. Some repair firms, particularly those specializing in windshield replacements, are accused of overbilling, further escalating costs.
Consumer groups and state lawmakers are linking the insurance crisis to political appointments and regulatory decisions. State Representative Anna Eskamani, a Democrat representing Orange County, shed light on the role of appointed officials in approving rate hikes.
Consumers facing these challenges have limited options. Raising deductibles is one avenue, though it entails the risk of increased out-of-pocket expenses in case of an accident. Safe drivers may explore discounts offered for using tracking devices that monitor driving habits, though this involves a privacy tradeoff, as cautioned by Kaveh Waddle from Consumer Reports.
Price shopping through independent agents who represent multiple carriers is also suggested, as different insurers assess risk in varied ways, leading to divergent quotes for the same coverage. As Florida grapples with this insurance crisis, families are urged to explore these options to navigate the challenging landscape.
