Federated National Insurance Company submitted a request to the Florida Bureau of Insurance to increase the premiums for its auto insurance customers in the state by an average of 20%. The filing was approved as of August 29, 2017.
Policies written for new customers will have been affected by the change on or after August 1, 2017. The rate impact will be enacted for current policyholders on or after October 1, 2017, should they choose to renew.
Federated National Insurance Company proposed rate impact
Premiums are estimated to increase for 1,315 policyholders in Florida. As with most increases, though, the impact will be spread unevenly, with some policyholders receiving increases lower than that figure and other receiving larger hikes.
As of 2016, Federated ranked 55th among auto insurance carriers who are active in the state. The Florida auto insurance market is not heavily concentrated. Berkshire Hathaway Group, while commanding more of the market than any other carrier, still holds only 22.8% of all policies.
In the filing, Federated included the percent changes for certain policies in its non-standard auto insurance program, which we have put into a table below. The largest hikes were for comprehensive (other than collision) policies and personal injury protection, both of which have average increases of up to 30%. However, bodily injury and uninsured motorist policies both have the lowest increases at an average of 1% and 4% respectively.
|Program Name||Rate Change|
|Bodily Injury Liability||1%|
|Personal Injury Protection||30%|
|Comprehensive (Other Than Collision)||30%|
How these increases compare
These hikes are among the highest rate increases to go into effect for auto insurance in Florida in 2017. Among the 12 largest companies in the state, 10 have been approved for rate changes by regulators. The average increase in premiums arising from those decisions is 4.5%. Within the approved list, the largest hikes were for United Services Automobile Association Group (with an average increase of 10.1%); State Farm Group (7.8% on average); and Liberty Mutual Group (6.0% on average).
When compared to the rest of the U.S., car owners in Florida rank among the most expensive states for auto insurance. Premiums are 22% more expensive than the average premiums for car owners in the country as a whole, with our sample Florida policyholders facing an average annual fee of $1,830 to insure their cars.
That annual tab translates into an average monthly cost of $153, which makes Florida the 10th most expensive state for auto insurance in the U.S. While both Alabama and Georgia are to the north of Florida, the two states vary in their rankings for our benchmark drivers. Georgia is on the more expensive end of the spectrum, with our sample policyholder paying an average of $183 a month. Alabama, on the other hand, sits in the middle of the rankings with our benchmark policyholder paying an average of $127 per month.