LAKELAND, Fla. — While much of the focus of Florida's insurance crisis has been on property insurance, a different type of insurance is giving a stop sign to many residents.
Auto insurance premiums skyrocketed by 20.3% in December from a year earlier, the largest increase since the mid-1970s, Labor Department data showed.
Florida drivers like Richard Fegoe have some of the highest car insurance costs in the country. He's had the same car insurance company for 30 years and considers himself to be a very safe driver.
“I’ve had no accidents, no nothing,” Fregoe boasts.
But his auto insurance costs shocked him when his premium went from $150 last year to $199 this year.
“I immediately called my insurance agent, and they said everybody’s insurance went up this year,” Fregoe said.
Mark Hamrick, senior economic analyst for Bankrate, said Floridians are bearing the brunt of the insurance crisis.
“There really has been a perfect storm affecting car insurance premiums, and ground zero for that really is the state of Florida,” said Hamrick.
He identified several factors that are driving up the cost of car insurance, including a rise in new car prices, declining demand from reinsurers, and vehicles being more expensive to repair.
“Think of the increasing complexity and technology that’s associated with a rear-view mirror that might have a camera in it. That is not as cheap to replace as it was in the past,” he said.
Experts said there are a few things you can do to help lower your auto insurance, starting with shopping around.
“Contact your company to ask them whether there is anything that can be done to bring down the cost of that insurance. Would it work better for you if you’re making payments monthly rather than every six months or once a year? Helping you to budget more for that,” Hamrick said.
Some drivers may also be able to take a defensive driving course, bundle their policies, or increase their deductibles to help lower their costs.
