TAMPA, Fla. – A recent nationwide report has revealed that residents of Florida are grappling with the second-highest auto insurance premiums in the United States, and experts suggest that relief might not be on the horizon.
Forbes conducted a study this month, indicating that the average car insurance cost for drivers in Florida exceeds $4,300, placing the state just below New York in terms of premium prices.
Lisa Miller, the former deputy insurance commissioner for the state, highlighted a notable surge in rates over the last 12-18 months, with an increase ranging between 30 and 40%. Miller attributed this rise to three main factors: litigation, weather-related incidents, and inflation.
“First is for every storm, think of all the homes that got damaged, there’s at least two cars. So for every home, you can just double that for the auto insurance companies in terms of repairs. Second: Inflation. Think about the cost. When you damage your car, it’s just a fender bender. Well, the cost for a fender three years ago was probably 80% cheaper than it is today,” explained Miller. “The third is litigation. All this litigation reform that the legislature put in place, that’s where the governor said, ‘I’m going to stop the billboard lawyers,’ it didn’t [create similar restrictions for] auto insurance.”
Data from the Florida Office of Insurance Regulation indicates that the majority of insurance carriers raised rates at least two or three times in the last 18 months.
As an insurance consultant, Miller advises customers to explore different options and tailor their policies to their specific needs to potentially mitigate rising premiums. She emphasizes the importance of understanding the five major coverages that constitute auto insurance, encouraging consumers to educate themselves and engage in conversations with insurance agents.
Despite the escalating premiums, experts stress the significance of not allowing coverage to lapse, as drivers may face charges or jail time if pulled over by law enforcement.
