Inflation strikes Florida as auto insurance rates rise

Reporter: Asha Patel Writer: Nicholas Karsen
Published: Updated:

Americans have been dealing with inflation costs since 2021, from food, gas, housing and now auto insurance.

Due to the flooding damage caused by Hurricane Ian in 2022, Florida insurance companies were forced to raise auto insurance rates to compensate for the cost of claims.

WINK News spoke with Mark Friedlander, Director of Corporate Communications at the Insurance Information Institute about the drastic rate hikes on Florida car insurance.

“Florida was the highest when we looked at all the data,” said Friedlander.

An article written by the Washington Post reported that Florida saw an 88% increase in car insurance rates. Friedlander clarified the information regarding the article.

“Nobody could afford car insurance at that rate. It’s just not possible. I don’t know where it came from,” said Friedlander. “But I’ll go back out. According to the insurance information, it’s just analysis, auto insurance increased year over year 14%, compared to 2022, which by the way, is the highest average increase of any state.”

The 88% increase stems from how much car insurance went up since 2013 in Florida, according to FINN, a car subscription service.

The Insurance Information Institute said factors like accident frequency, litigation, fraud and severe weather can raise premiums, with at least 40,000 auto claim lawsuits filed each month in Florida this year alone.

“The average cost of auto insurance is running about $3,100. That is 50% higher than the average, which is running at about $2,000,” said Friedlander.

Friedlander said there are ways people can save so they aren’t drowning in costs.

People should shop around for different policies and compare quotes, take advantage of discounts and overall be good drivers.

Florida will see the highest average premiums in 2033, with an estimated annual cost of $4,813 due to climate change increasing the likelihood of claims filed.

That’s more than $2,500 than the predicted national average if current trends continue.

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