Come to Florida for the sunshine, stay for the insanely unaffordable insurance policies?
Due to the heavy losses many carriers are facing in the state, property insurance rate increases are skyrocketing with many people in the state seeing their home insurance premiums going up 40% or more, according to recent data.
But those astronomical costs aren’t only impacting home insurance policies in the state, but also the premiums for bundled home and auto policies covered together under a single carrier.
Many insurance carriers offer discounts for consumers who purchase their property and auto policies together, letting the covered enjoy lower costs versus buying each policy individually. However, the hefty increases in property insurance costs are impacting the price tag on those bundled policies too.
In addition to the impact of property rates on bundled policy premiums, the Tampa Bay Times earlier this year reported several carriers increasing their auto rate substantially, including:
- A 34-57% rate increase for United Services Automobile Association (USAA) customers, totaling more than 1M policies in the state at the time
- More than 30% increase for State Farm Mutual Automobile Insurance Co. customers in the state, of which there were about 2.9M policies
- 30% for the two major Progressive lines of policies covering 3.3M vehicles in Florida
- An astounding 44% hike for Liberty Mutual’s 157K policyholders in Florida
- 24% increase for Geico General Insurance Co. policyholders, of which there were 2.4M
In total, nearly 10M auto policyholders saw their insurance bills balloon at renewal due to the increases driven by insurance carriers looking to maintain profitability in the state.
While Florida’s skyrocketing auto insurance rates may feel daunting, there are ways to navigate this challenging landscape and save money. By implementing some simple strategies, you can decrease your premiums without sacrificing necessary coverage:
Shop Around
Start by shopping multiple and comparing quotes from various insurers, including lesser-known regional companies. You can quote several carriers at the same time through Auto Quote Tracker’s easy-to-use form and its call center, where you can speak with a licensed agent.
Drive Safely
Remember, maintaining a clean driving record is paramount and can unlock significant discounts. In Florida, accidents generally stay on your driving record for 3-5 years, depending on whether you were found at fault and the severity of any associated violations.
Review Your Coverages
Consider raising your deductible to reduce costs, but choose an amount you can comfortably afford. Learn more about the components of your policy and how to best manage them.
Find Discounts
Additionally, you can explore available discounts like bundling your auto and home insurance, opting for telematics programs that track safe driving habits, or enrolling in defensive driving courses.
These proactive measures can help Florida drivers navigate the rising tide and find affordable coverage that fits your needs and budget.