Tired of sticker shock when you look at your auto insurance premiums? Good news! Sort of.
OK, yes, the price for car insurance is almost certainly going to rise again in 2024. But maybe not as much as they have been. Insurance comparison site Insurify is predicting a 7% rise this year, but annoying as it is, it's still a huge improvement.
Auto insurance rates surged 24% last year, according to insurify, "as the rising cost of repairs, climate catastrophes, and severe car accidents contributed to record losses for insurers," along with high inflation rates and fears of a recession that never happened. The average cost of a full-coverage policy at the end of 2023 was $2,019 a year, taking up 2.6% of the median household income. That's nationally.
Here in Florida, the average annual full-coverage rate is $2,917 or $243 a month at the end of 2023, the report said, 44% higher than the U.S. average and the third-highest in the nation, after New York and Nevada. Six months previously Insurify ranked Florida the fourth-highest, with full coverage premiums of $2,419. Florida also was ranked among the 10 states where car insurance rates were rising the fastest.
Full coverage rates in the Sunshine State represented 4.3% of the state's median household income in 2023, $68,181, which is less than the U.S. average of $76,967.
Insurance rates in Florida were affected by severe weather events (hurricanes, tornadoes, flooding), the skyrocketing cost of auto parts, multiple insurers halting new policies or leaving the state completely, and rampant insurance fraud, Insurify's report said.
Nationally, insurance rates are expected to rise to $2,160 in 2024, Insurify said. A 7% rise in Florida's average would bring it to $3,121.
Which states pay the highest car insurance?
According to findings from Insurify's database of 97 million car insurance quotes from different insurance companies and a survey of 1,900 drivers across the country, the states paying the most for full coverage auto insurance are:
- New York: $3,374, or $281 per month
- Nevada: $2,975, or $248 per month
- Florida: $2,917, or $243 per month
- Delaware: $2,806, or $234 per month
- Lousiana: $2,792, or $233 per month
- Washington, D.C.: $2,756, or $230 per month
- South Carolina: $2,680, or $223 per month
- Maryland: $2,645, or $220 per month
- Michigan: $2,640, or $220 per month
- Rhode Island: $2,452, or $204 per month
The average cost of full coverage car insurance in the U.S. in 2023 was $2,019, or $168 per month.
Florida is also tied for 2nd place for the highest percentage of household income going toward car insurance, tied with New York at 4.3% and coming behind Louisiana at 4.7%. The national percentage is 2.6%.
Car insurance data from Bankrate, a consumer financial services company, estimated higher rates and says Florida drivers currently pay an average of $3,183 for full coverage.
How much did car insurance go up in 2023?
High inflation rates and fears of a recession that never happened saw average car insurance rates jump 24% to over $2,000 a year, Insurify said. About 63% of surveyed drivers said their rates increased last year, and 22% saw increases more than once (although they may have had a six-month policy).
Car insurance rates increased638% more than wages increased in 2023on average, Insurify said.
Is Florida going to repeal no-fault car insurance?
One of the biggest drivers of car insurance rates is the high level of frivolous lawsuits and insurance fraud, experts say.
To combat this, Sen. Erin Grall, R-Vero Beach, filed SB 464 and Rep. Danny Alvarez, R-Hillsborough County, filed HB 653 to repeal the state's no-fault system and the mandatory $10,000 in personal injury protection (PIP) that has been in place in Florida law since 1979. The bills, which will be discussed in the current Florida Legislative Session, would instead require motorists to carry $25,000 in bodily injury coverage for injury or death for one person and $50,000 for injury or death to two or more persons in the same crash.
Proponents of the repeal say it will reduce insurance rates by reducing costly lawsuits and eliminating fraud. But critics said it would drive up costs for low-income Floridians who buy only PIP coverage and could put more motorists on the road without coverage.
Gov. Ron DeSantis vetoed a similar bill from Grall in 2021, and another died in committee in 2023.
Are there any other bills in the Florida Legislature addressing vehicle insurance?
Only two. One hasn't moved since Jan. 9 and the other was withdrawn.
HB 41: This bill would create a program where residents could apply for a one-time grant of up to $1,500 (or $2,500 for residents 65 and over) to cover mortgage loans and homeowners' and motor vehicle insurance payments.
HB 921: This bill from Rep. Tom Fabricio, R-Miami Lakes, would have required the state to contract with a Florida public university to determine if breaking small regions away from metropolitan areas by ZIP code would reduce insurance rates, mentioning Miami Lakes by name. The bill was withdrawn before it was introduced
DeSantis' proposed budget for 2024-2025 includes breaks on taxes, fees and assessments for residential property insurance premiums and exemptions on flood insurance, but auto insurance was not mentioned.
How are people reducing their auto insurance premiums?
More than 45% of drivers didn't do anything to reduce their premiums in 2023, Insurify said. Most of the rest increased their deductibles, lowered coverage limits, removed drivers from their policies or dropped full coverage.
Of the drives, 10.29% switched insurers. Just under 3% simply canceled all car insurance.
