Florida may be the most expensive state in America for car insurance, and things are getting worse for drivers in the Sunshine State.
The South Florida Sun Sentinel reports that major auto insurers are increasing rates at a stunning pace in the state. Insurers must file rate increases with the state’s Office of Insurance Regulation.
Related: How to Buy Car Insurance: Everything You Need to Know
Rates Jumping 30% Or More in One Year
A review of recent filings finds:
- State Farm filed for “three rate increases this year totaling 30.2 percentage points.”
- Progressive “took four increases since July 2022 totaling more than 30 percentage points.”
- USAA filed for three rate increases ranging from 33.9% to 57.3% for some policyholders
- Liberty Mutual has filed for three increases since last June, driving “average premiums up a total of 44.3 percentage points.”
- AAA, operating as Auto Club South in Florida, recently “submitted a plan to increase rates for members of its “legacy” brand by 39.7%, to be imposed over two years.”
Nationwide Trends Partly to Blame
It’s not just Florida. A new study from Insurify found that “Car insurance prices have risen 17% in the first six months of 2023” nationwide.
The cost to repair the average car has soared as cars increase in complexity. Accident rates are up nationwide in the aftermath of the COVID-19 pandemic.
But It’s Hitting Florida Hardest
But Floridians have it worse than residents of most other states. “Florida is the most expensive state for car insurance,” explains NerdWallet. Insurify disagrees, finding Michigan the most expensive state to insure a car. But Insurify also notes, “Climate change is top of mind for insurers, with many pulling out of markets with greater climate risk, like Florida and California.”
Related: The 7 Biggest Car Insurance Discounts for 2023
Farmers insurance recently pulled out of Florida entirely, citing the state’s frequent exposure to hurricanes.
What can Florida drivers do?
Michael Sawa, an insurance advisor at Mangrove Financial Group in St. Petersburg, told MSN the best step they can take is to shop around quickly. “My recommendation is to reach out to an insurance agent, an independent agent in your area, someone who’s familiar with your ZIP code with your county, and just ask them to take a look at your current policy. It doesn’t hurt to shop, it’s not going to negatively impact you,” he added.
