Written by Just when you thought Florida reinstating PIP coverage in Jan. 1 2008 was a bit of a hassle, wait till you compare your car insurance rates with neighboring states…or any state for that matter.
Over the course of the last 15 years Florida automobile insurance rates have skyrocketed over 74% – that’s over 24% higher than the national average. That’s not small change either, as the average 6 month premium in 2005 was over $1,000 per policy where the national average was a little over $800.
Why is car insurance so expensive in Florida?
Pretty simple really. Florida gives insurance companies that write auto insurance policies in the state the ability to hike rates before regulatory approval. In laymen terms. An auto insurance company can make you pay more for car insurance well before the state insurance commission reviews and authorizes the rate hike.
In 15 of the states in the U.S. insurance rate hikes must meet regulatory approval as it directly affects consumers, and states are aware prices are too high as it is for many people. So, to avoid unnecessary rate hikes insurers are given less control over the process of raising rates.
If you live in Florida and are concerned about your rising car insurance rates, use the form below to get a few free car insurance quotes. Some customers report savings of over $800/yr on their car insurance bill.
Florida is bad for auto insurance.
so no company wants to write home insurance in FL, but they’ll gladly write auto insurance in FL when they can raise rates without regulation.
Florida already has a problem with PIP and now insurance costs are looking to rise still. What can we do about lower rates? Why doesn’t Florida have a system in place that controls rate increases?