Car insurance form & key on table — Courtesy: Shutterstock — Africa Studio
Florida residents already struggle financially with sky-high property insurance premiums, and now they must also contend with sky-high car insurance premiums.
The Insurance Information Institute’s insurance expert Mark Friedlander gave Local 10 News some money-saving advice.
“Sticker shock, we were seeing it, already with home insurance. Now, we’re seeing sticker shock with auto (insurance),” Friedlander said. “Florida rates are up 20 to 25 percent on average through mid-year, so Florida, typically, is outpacing the US.”
But why is this taking place?
One explanation is that because cars are more expensive, their parts are also more expensive, making both replacing and repairing them more expensive.
“Insurers are paying out more in claims than they’re taking in in premium, so that is a big driver of why rates keep going up,” said Friedlander.
According to Friedlander, insurance fraud, lawsuits, and an increase in car theft, all result in increased premiums.
In just a few days last spring, Broward County received two feet of rain.
“Severe weather is a significant factor,” Friedlander said, adding some food for thought. “One out of every five drivers on the road doesn’t have insurance. That makes it more costly for all of us.”
But there are methods to cut costs. Policies can be bundled by drivers.
“That can save 20 percent or more,” said Friedlander.
Discounts are possible for policies with several vehicles as well as for safe driving.
“If you have no accidents or speeding tickets for three to five years, you get a discount for that,” Friedlander said.
Additionally, drivers are urged to compare prices. New rates can occasionally result in the closure of an existing business.
“All the major insurers write auto policies,” Friedlander said.
Rates fluctuate historically, but until the end of the year, anticipate an increase.
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Mike has more than 30 years of experience in marketing and public relations. He once owned his own agency and has worked with some of the largest brands in the world.
