Car insurance costs on the rise in Florida; here’s why
Homeowners are already facing double-digit price hikes for insurance, and now they can prepare to pay more for car insurance too.
Experts say we could be in for the most significant price hike in six years.
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Tamara Lykoi, 30, used to pay $465 twice a year to insure her Nissan Altima. She’ll pay $100 more for the first six months this year.
“Food expenses have gone up, gas fluctuation with that has gone up, our car insurance went up, our property insurance went up and we are noticing utilities. Everything is slowly nickel and diming its way up and I’m like, ‘Welp, I just have to pay it,’” she said.
Watch: Car insurance: The domino effect that’s driving up your premiums
And she is not alone. According to Automoblog.net, Florida is the third most expensive state now for car insurance, thanks to recent hikes in premiums.
In fact, an average minimum coverage policy costs $1,343 a year, while the average cost of a full coverage policy is almost twice that.
A new report by Bank Rate shows Floridians had their premiums increase more than any other state, jumping nearly twice the national average, with an average premium in Orlando now at more than $3,000.
Read: ‘Completely shocked’: You might be surprised to see what’s in your insurance claim history
The rates are higher than even Los Angeles, California.
Mark Flockhart with Think Insurance said inflation and other things like car prices and repairs contribute to the rising costs.
The state is also trying to crack down on insurance fraud and arrest people for staging accidents.
Florida CFO Jimmy Patronis has sent out statements about this ongoing issue, writing, “Scam artists are working every day to drive up your insurance rates to line their own pockets … schemes like this are not only costly, but they are also dangerous, putting innocent motorists at risk on Florida’s roadways.”
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