TAMPA, Fla. — Florida drivers are feeling the increasing price of paradise, now with car insurance premiums rising.
According to the latest consumer price index, auto insurance is up 17% in the U.S. and it’s even worse in Florida at nearly 40% more than the national average, according to Bankrate.
“Our insurance went up from about $280 a month to about just under $500. It was a major, major bump,” exclaimed St. Petersburg resident Nick King.
“It went up probably about $50… over the last six months,” said another resident Keith Gilliam.
“I called a couple different companies and tried, and it's just, they’re even more,” King added.
King and Gilliam have different insurance companies, but both said they were told the same reason for rate increases: Hurricane Ian.
“They told us that, like, for they're trying to recoup funds from the hurricane and everything,” Gilliam said.
But agent and President of Southshore Insurance Professionals Michelle Mosher explained it’s that and much more.
“Anybody who drives on our roads here knows that the frequency of accidents is up, the severity of accidents is up… and so you may not have any claims but your policy is rated by a zip code and the insurance company's ability to be able to run a profitable business in that zip code,” Mosher said.
Inflation also plays a role, including the cost to repair and replace a vehicle.
The cost of motor vehicle repairs is up 13.5% from May of last year to May 2023, and the cost of hospital medical care is up 4%, according to the latest Bureau of Labor Statistics consumer price index.
The cost of medical care and the cost of litigation lawsuits are up. We see lots of lawsuits for auto accidents,” Mosher said.
She advised drivers:
- Consider a higher deductible to keep rates lower
- Sign up for safe-driving tracking programs for discounts
- Don’t jump carriers often. Auto insurers give discounts for longevity and accident-free records
- Pay smaller repairs out-of-pocket versus filing a claim
“For example, I had a client last week filing a claim for windshield repair. He has the coverage, absolutely has the coverage. The windshield was repaired, it was an $89 charge, but now he lost his claim-free discount and can’t get that back for three more years because he filed a claim,” Mosher explained.
Overall, she said to follow the laws-- a clean driving record is the best way to keep your rate lower.
To read the in-depth study on Florida auto insurance by Bankrate, click here.
Click here to read about Florida's no-fault legislation battles.