Over the last few years, Florida homeowners have all felt the pinch of increasing property insurance rates. Now, car insurance rates are on the rise too.
Car insurance premiums have increased nationally, 17% in the first 6 months of this year, according to the U.S. Bureau of Labor Statistics.
It has increased even more in Florida. Many consumers are already seeing the rate hikes.
When Lewis Breland opened his latest car insurance statement for his 2012 Toyota Rav 4, he said the price jumped from $800 a year to more than $1,200.
“Twelve hundred dollars is a lot of money,” Breland said.
Breland is 76, retired and on a fixed income.
“You just kind of grin and bear it and keep on going. That’s all you can do,” he said.
Breland is by no means alone.
Steven Perez said higher rates have hit him too.
“I’ve definitely noticed a gargantuan spike. It’s actually unbearable,” Perez said.
Insurify is an insurance comparison website. Their mid-year auto insurance report shows prices have increased 25% in Florida.
The national average is now $1,668 annually. In Florida, it’s even more expensive at $2,412, according to the report.
Tanveen Vohra is an insurance specialist with Insurify.
“Florida has historically had very high car insurance rates, primarily as a result of it having a high proportion of uninsured drivers, which drives up the cost of car insurance for everyone in the state,” Vohra said.
Florida has other factors like increased risk of hurricanes which can impact premiums. Auto parts have also gotten more expensive everywhere, so when a car is in a wreck it costs more to fix it, according to Vohra.
“This is mainly a result of supply chain issues that have really driven up the material costs,” Vohra said.
Perez said he had to stop driving for a period because he couldn’t afford his insurance.
“Before I had to cancel it, because of how much it went up. It went up like $200 a month,” Perez said.
Both Perez and Breland said they would lower their coverage to get a lower price.
If you consider doing that, make sure you have the coverage you need.
If you don’t and you’re in an accident, you could be hit with large unexpected out-of-pocket expenses.
Industry analysts anticipate prices increasing another 4% by the end of this year.
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