Floridians pay second-highest auto insurance premiums in the U.S., study shows
TAMPA, Fla. - A recent national report showed Floridians are now paying the second-highest auto insurance premiums in the country, and experts said Thursday there may be no relief in sight.
According to a study this month by Forbes, drivers in Florida are paying more than $4,300 on average for car insurance. Only New York has a higher average premium price.
Lisa Miller, the state's former deputy insurance commissioner, said rates are up between 30 and 40% in the last 12-18 months.
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"There are three main reasons why auto insurance rates are so high," said Miller, "litigation and the weather and inflation."
Miller went on to explain how each have impacted statewide rates.
"First is for every storm, think of all the homes that got damaged, there's at least two cars. So for every home, you can just double that for the auto insurance companies in terms of repairs. Second: Inflation. Think about the cost. When you damage your car, it's just a fender bender. Well, the cost for a fender three years ago was probably 80% cheaper than it is today," she said. "The third is litigation. All this litigation reform that the legislature put in place, that's where the governor said, 'I'm going to stop the billboard lawyers,' it didn't [create similar restrictions for] auto insurance."
According to the Florida Office of Insurance Regulation, most insurance carriers raised rates at least two or three times in the last year and a half.
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Miller, who now works as an insurance consultant, urges customers to shop around and ensure their policies are tailored to their specific needs.
"Study the five major coverages that make up your auto insurance. Understand them, read about them on the web, and have a conversation with your insurance agent. It just may help reduce those premiums," she said.
Experts told FOX 13, no matter how high premiums get, drivers should not let their coverage lapse, because they could face charges or jail time if they get pulled over by law enforcement.