Factors Driving Auto Insurance Premium Increases in Florida

Auto insurance premiums in Florida have been on the rise in recent years, leaving many of us wondering about the factors behind these increases.

Inflation! Everything we purchase has gone up significantly in the last three years. This includes many key components that contribute to auto insurance premiums such as vehicle repair costs, medical costs, legal expenses, and fraud.

Vehicle repair costs. With all the new safety features, the simple repair is not so simple anymore. Windshields need to be recalibrated, and side view mirrors that used to be $300 to replace are now $2,500 due to blind spot sensors and other technology.

Labor costs, like most other industries, have gone up significantly for repair shops. Rental costs, since it is taking longer to get the necessary parts needed to fix vehicles, as well as rental time periods, are longer, therefore increasing costs. Medical Costs. Costs continue to increase through all areas of medical care.

Legal Expense and Fraud. Florida’s status as a hotspot for insurance fraud adds to the premium burden. Staged accidents, fake injuries, and inflated claims are prevalent issues that drive up costs. Frivolous lawsuits are filed by the thousands.

A combination of factors, including high accident rates, insurance fraud, natural disasters/Hurricanes/hailstorms/floods, and legal costs, all contribute to rising auto insurance premiums in Florida.

But, there are some solutions we can look at to help you navigate your auto insurance so please reach out to discuss your options with us.