Senator calls for insurance fix after AAA will not renew some Florida customers

Reporter: Andryanna Sheppard Writer: Rachel Murphy
Published: Updated:

AAA announced Thursday that they are dropping customers in the middle of hurricane season, sending some customers non-renewal notices.

A spokesperson for the company blamed Florida’s insurance crisis and last year’s hurricane season in a statement.

Florida Senator Tracie Davis said, “It is going to get worse it before it gets any better. And I personally do not see it getting any better if we don’t take action, if we don’t have a governor that comes back home to take care of his state and the people that live in his state.”

Rates for reinsurance, the insurance for the insurer, have skyrocketed in price. Even though AAA is hopeful with new laws aimed to fix the crisis, it will take time to see improvements.

AAA logo
AAA logo

The Florida Legislature held two special sessions regarding the insurance crisis in 2022. The laws that came out of them gave insurance companies three billion dollars in reinsurance.

Lawmakers said this would help turn the property crisis around, keep insurance companies from leaving the state or falling apart, and eventually lower customer rates.

UPC went insolvent in early 2023. Farmers announced this week it was pulling out of Florida. AAA has now announced it’s dropping customers.

Senator Davis wants a special session that immediately addresses skyrocketing rates, “We have the dollars and cents to help these insurance companies stay in Florida. But we also have the dollars and cents to make sure that we are creating options, looking at everything we possibly can look at to ensure we’re providing savings for Floridians.”

“The legislation that’s been passed to date is very strong, and will be effective in helping the market stabilize,” Friedlander said.

Copyright ©2024 Fort Myers Broadcasting. All rights reserved.

This material may not be published, broadcast, rewritten, or redistributed without prior written consent.