PINELLAS COUNTY, Fla. — Everyone in the state of Florida is familiar with the ongoing property insurance crisis. But another type of insurance has started to see rates that are leaving Floridians in an unaffordable state.
According to data from Kelley Blue Book, Florida has seen car insurance rates rise 30% over the last year.
"Unbelievably. I can't believe I'm paying that much for insurance…and I have two different vehicles, I have an RV as well as my car, and I'm really paying a lot of insurance," said Patrece Colburn, who lives in Pinellas County. "The bottom line is a lot more than any of us were expecting," she said.
Elissa Stenders works at Bentley Denight Insurance and said the rates have steadily climbed for years.
"Since COVID, the cost of cars has gone up, so then the cost of claims have gone up when they pay out vehicles, the cost of parts, being able to get them, supply and demand," said Stenders.
But she said the last year has seen a big jump because of Hurricane Ian and Idalia.
"If you have comprehensive coverage on your policy and your vehicle floods, then it's most likely going to be a total loss because salt water in your engine is not going to be fixed. So they are going to have to total the vehicle out," she said.
According to the U.S. Bureau of Labor Statistics, Americans' average six-month car insurance rate in July was $717.
Bob Passmore works for the American Property Casualty Insurance Association and said inflation has also caused the cost of car parts to skyrocket.
"It starts with the cost of repairs. Those kinds of things are up across the country. A lot of reasons why…some of it is just inflation, some of it is the increasing sophistication of vehicles making them more expensive to repair," said Passmore.
There have been carriers that have taken at least three rate increases this year to try to get to where they are or stable so they won't have to go out of business," said Stenders.
Experts said right now is a great time to call other insurance providers and ensure you get the best deal.
"Call your agent, make sure they are shopping it for you, see if your coverage is adequate, maybe there is anything you can change to save you money," said Stenders.
Stenders recommends people take advantage of safe driving programs, and if you need a new car, double check the vehicle's history.
"Check to see if the vehicle you want to purchase has had any recalls for fires or for being stolen easily. Those things will save you money in the long run," she said.
Colburn said her car is a necessity despite the rising cost of insurance.
"It's like everything else. Everything else has gone up, too. My power bill has gone up incredibly, but you know, you pay it," said Colburn.
