Consumer insurance website Insurify ranked Florida fifth in the country for highest automobile insurance rates.
The state with the highest rates was Maryland, where the average consumer spends $3,400 yearly for full-coverage. The state with the least amount was New Hampshire, where the average cost for car insurance was $1,000 annually.
Florida car owners are about to see their rates incerease. Insurify’s latest analysis examined all 50 states and drivers between the ages of 20 and 70 with clean driving records and average or better credit.
It found that the average annual cost of full automobile coverage for a Florida driver was around $3,200. Florida drivers pay 37% more than the U.S. average, and the cost is expected to go up this year by nearly 20%.
Insurance analysts say there were several contributing factors to the increase in costs for consumers. Hurricanes. There is a rise in frivolous lawsuits against insurers, and Florida is a no-fault state that accounts for 74% of questionable auto glass claims in the U.S.
Insurify’s report also notes that vehicle maintenance and repair costs have increased by nearly 38% over the past five years. “Higher repair costs mean insurers pay more expensive claims, and policyholders see higher premium hikes,” the report says.
Brian Hodgers, President at Complete Choice Insurance in Melbourne, Florida, says newer cars with more expensive repairs also add to the cost. With the new electronics devices in cars with semiconductor chips, the cost to repair these items has become more expensive.
From their analysis, Insurify said another area of cost that is being pushed on to car owners’ insurance is if a claim is filed and it goes into a body shop, mechanic labor hours have grown by 40% per claim over the last decade as technologies in newer models become increasingly complex. Also, the U.S. faces a shortage of 495,000 auto technicians and 110,000 collision repairers.
But Hodgers says there are ways consumers can find lower cost for car insurance.Most insurers offer new vehicle discounts because if the cars is more reliable and safer in accidents and insurance is cheaper for older vehicles.
Drivers who see their premiums spike should research and compare with multiple insurance companies, which could help them save hundreds of dollars annually.
Hodgers also reminds drivers that some companies give discounts to accident victims, our military members, and their families, and raising deductibles can bring premiums down.
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