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Driving Floridians Crazy: Soaring Auto Insurance Rates Roil Local Drivers

The average cost of auto insurance in Florida increased by 21 percent between January 2023 and January 2024. Climate is just one reason. Thousands drive uninsured, raising rates for everyone. Local drivers are feeling the pinch.

Photo by Dan Gold via Unsplash

By Briana Bermudez | MediaLab@FAU

Oct 18, 2024

WEST PALM BEACH, Fla. – Alexander Guerrero, a 20-year-old criminal justice major at Florida Atlantic University, felt a financial pinch as car insurance rates skyrocketed in South Florida over the past year. 


According to MarketWatch, the average cost of full-coverage auto insurance in Florida has increased nationally by 21 percent between January 2023 and 2024. MarketWatch also says that insurance rates in Florida are 42% higher than the national average.


“It’s expected for it to be this high, especially in areas like Fort Lauderdale and Miami, because people don’t know how to drive and get into accidents left and right,” said Guerrero.


Guerrero, who commutes to FAU, bought a 2021 pre-owned Honda Civic last February. He said his insurance with Progressive was more expensive than he thought but somewhat reasonable due to what he was getting in return. 


“Every six months, I pay $1,500 for car insurance, which is around $250 monthly. But I get roadside assistance, vehicle protection, and CPE, which is for custom parts, like if I want to modify the car and collision coverage, obviously,” said the Lake Worth native. 


Florida has the highest average monthly cost of $316 compared to the national average of $223, according to MarketWatch. Since the start of the COVID-19 pandemic, the price has only increased dramatically, and given the current trend, it is highly unlikely that it will decrease by 2025.


There are several reasons for the increase in auto insurance: fraudulent insurance scams, natural disasters, and weather risks, including flooding, high accident repairs, and medical costs.


With Florida's hurricane season closely ending, thorough coverage is essential. 


Every year, Florida experiences hurricanes from June 1 to November 30. Flooding can result in water damage, and strong winds can send debris flying onto cars. Damage of this kind may result in costly repairs or even totaling of the vehicle. 


“We had Farmer’s, but after the last storm last year, they were writing some homeowners policies, so I switched to Allstate,” said 63-year-old Doug Lambe, who drives a Ford F-250 truck. 


Lambe began paying $588 monthly for his and his wife's car under Farmers Insurance Group after Hurricane Lee landed on Florida's east coast in September 2023. He now has Allstate and pays $536 for the two vehicles and his camper. 


Florida, which frequently has hurricanes and tropical storms, has an average annual cost of $4,326 for auto insurance. However, Ohio, which generally experiences less severe weather, only has an average yearly fee of $1,112, according to Forbes.


Jason Alexander, an insurance agent at Honda Delray, said that the primary reason for the high costs is uninsured drivers. 


“Florida has one of the highest rates of uninsured drivers in the U.S., especially in Palm Beach and Broward. Insured drivers often bear the cost of covering accidents with uninsured motorists through their premiums, which raises costs for everyone,” Alexander said. 


The Florida Insurance Information Portal states that nearly 20% of Florida drivers are without insurance, and almost 320,000 cars in Broward County alone are potentially uninsured or underinsured.


Alexander further explained that state laws also significantly influence auto insurance. The no-fault insurance system and personal injury protection (PIP) requirements are the state’s regulations that complicate matters further.


“Reforming PIP and imposing stricter penalties on uninsured individuals could break the financial burden. Insurance companies could also offer telematic premiums, implement pay-per-mile insurance, and clean record discounts,” Alexander said. 


Telematic premiums are a form of auto insurance where the software’s data allows for the tracking and monitoring of driver safety based on a driver's driving style, location, and duration to determine their risk level. Moreover, in the event of a car accident, insurance companies can offer telematics data to verify who’s at fault.


As South Florida residents continue to face rising auto insurance costs, understanding the factors behind the increases and exploring available options may provide some relief in an increasingly challenging market. 


“They use any excuse to raise, you know,” said Lambe. “Rates have gotten bad.”


Alexander Guerrero in front of his Honda Civic. (Photo by Briana Bermudez

MediaLab@FAU

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