Florida Auto Insurance Costs 37% Above National Average: Bankrate Report

Bankrate reports that insuring a car in Florida costs on average 37% more than in the rest of the United States

In Florida, driving has become an increasing financial burden for residents, especially in Miami, where auto insurance is reaching record prices. A recent Bankrate study revealed that Florida leads the nation in vehicle insurance costs, with rates 37% above the national average.

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Florida residents are paying an average of $3,183 for an auto insurance policy, significantly higher than the national average of $2,014. André El Khouri, spokesperson for the American Automobile Association (AAA) in Miami, who told Univision attributes this trend to various causes, including the aggressive driving style prevalent in the state.

7 News Miami’s Karen Hensel’s investigation highlights the challenge of living and driving in South Florida, where the cost of living is already high. Mark Friedlander of the Insurance Information Institute confirms that Florida faces a 58% increase in insurance rates compared to the national average.

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María García, a local driver, expresses frustration at the continued increase in rates, even without traffic violations, leading her to consider giving up driving. This sentiment is echoed by other drivers and business owners, who face exorbitant increases in their premiums despite having a clean driving record.

Analysis indicates a 58% increase in car insurance rates in Florida compared to the US (Photo: Pixabay)

The causes of these increases are multiple, including insurance fraud, vehicle theft and flood damage. Additionally, the increase in accident severity and repair costs contribute to this phenomenon. A recent Washington Post article points to auto glass repair stores in Florida inflating prices for damaged windshields as another factor driving rising rates.

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The state of Florida has seen a dramatic increase in lawsuits related to glass and windshields, rising from 591 in 2011 to more than 46,000 this year, impacting costs for all policyholders.

To mitigate these costs, experts like Friedlander, in conversation with 7 News Miami, suggest comparing prices and looking for available discounts. For example, Rob Kornahrens, owner of Advanced Roofing, has implemented cameras in his vehicles to prevent fraudulent claims, resulting in a modest 3% increase in his rates over five years.

However, the reality for many drivers and businesses is a steady increase in insurance rates, which is a growing concern in a state where the costs of living are already high.

Insurance fraud and inflated repairs contribute to rising rates in Florida.

In Miami, drivers face premiums that can average $4,900, varying by zip code. André El Khouri explains to Univisión that certain areas are more expensive due to the high frequency of claims. Additionally, he points out that even minor vehicle damage can result in disproportionate medical claims.

Andre El Khouri emphasizes the importance of examining the policy together with the insurance agent, remembering that its cost varies depending on the coverage selected. He also suggests using the insurer’s mobile application, which allows you to monitor the user’s driving style.

It is important to keep in mind that incurring violations such as speeding or driving under the influence, as well as causing accidents or allowing the policy to lapse, can result in an increase in the price of the insurance.

According to local media, these are the factors that are considered when pricing car insurance.

• Credit history
• Age
• Gender
• Place where he lives
• Driving record
• Civil status
• Vehicle type

2024-02-28 16:20:12
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