Why Are Florida Auto Insurance Rates Increasing?

Florida auto insurance rates
are on the rise.

The cost of Florida auto insurance is the third highest in the country. The statewide average premium is two thousand and fifty dollars. This marked a ten percent increase in premium from the year 2017 to 2018. Now, the cost of a policy is expected to increase further.

If the increase is at ten percent, as the last year, then the average annual premium will be slightly more than two thousand and two hundred dollars. Some people expect the increase to be greater than ten percent. There are many drivers in the state who do not have insurance. This has an adverse effect on those who get insured. Florida has a no-fault policy for its auto insurances.

This enables insured drivers to use their coverage regardless of who was at fault for the accident. This policy simplifies the process of claiming coverage and insured people are protected. But the insurance companies have to bear the brunt since there are more claims and they have to provide the coverage without really getting the advantage of squaring it off with another insurer who has pledged some kind of coverage for the other party. The other party may be uninsured so there is no room for squaring it off. The cost of Florida auto insurance according to
floridainsurancequotes.net/florida-auto-insurance has been increasing over the years due to more claims and one major reason is nature. Extreme weather conditions lead to significant property damage. Inclement weather also causes accidents.

Both of these scenarios lead to more claims. Florida also has a problem of fraudulent practices, from con jobs to fake personal injury protection claims. These are adding to the miseries of the insurance sector. More insurers are reporting losses and hence they are only going to turn to the most obvious avenue to raise revenue. They do offer less coverage but that does not solve the dearth of revenue and hence net profit. Hence, the premium is the one getting reviewed and increased periodically.

Florida has witnessed an increase in accidents caused by or due to distracted driving. Many vehicles on the roads these days are equipped with state of the art features, especially gadgets. These make it more expensive to repair the cars after an accident or when damaged in any circumstance. Insurance companies have been reporting losses for years now, despite annual reviews and increasing the premiums. They are going to continue to increase the premiums to stay afloat. However, if you are looking to save on Florida auto insurance here is a great resource to get started with. Don’t settle for those overpriced rates!