Auto Insurance Rates Increases in Florida

Auto Insurance Rates Increases in Florida

In the last five years Florida has experienced above average rate increases for its auto insurance. In this article we give an overview of car insurance rate hikes in Florida as well as explain what Floridians can do to save money.
Florida Insurance Rate Increases

Florida drivers have experienced above average rate hikes to their auto insurance since 2012. The average rate hike was about 5% per year, though some companies increased by as much as 25% in one year. In this article we give an overview of car insurance rate hikes in Florida, and also explain how Florida drivers can save money on their premiums.

Car insurance rate increases in Florida

Auto insurance rates in Florida have increased average of 29% since 2012 — somewhat faster than the national increase of 25% in the same period. Over the past five years, every major company in the Sunshine State has raised rates significantly. Farmers and Liberty Mutual were the biggest culprits, with each insurer proposing double digit hikes in several consecutive years.

Company
2012
2013
2014
2015
2016
2017
5-year increase
Allstate5%3%3%12%10%1%39%
American Family4%4%-3%0%17%0%23%
Farmers25%1%3%10%14%2%66%
Geico5%0%-1%11%6%4%27%
Infinity7%4%4%13%14%0%48%
Liberty Mutual18%12%8%3%8%0%58%
Nationwide9%7%2%6%9%0%38%
Progressive7%-9%-2%8%6%1%10%
State Farm1%-3%0%7%7%8%20%
Travelers15%8%4%0%2%4%38%
United Services Automobile1%1%-1%7%10%10%31%
Windhaven14%4%-8%11%7%11%44%
Show All Rows

To see how each of the major Florida auto insurers stacked up, take a look at the graph below:

Image shows cumulative car insurance rate hikes in Florida by company since 2012

While most car insurance companies raise their rates each year, the amount of increase varies. This is why we recommend always collecting three or more quotes when you go to buy coverage. For example, while Geico has raised rates by 22% in Florida since 2012, the company still one of the more affordable insurers in Florida.

How Florida's car insurance rates compare to other states

Of all the 50 states, Florida had the 10th highest increase in car insurance rates since 2012. In general, states in the South (with the exception of North Carolina) saw the highest rate increases. This was most likely due to the severe impact of storms in the past few years. Georgia drivers dealt with the highest average increases by far, with insurance premiums rising by 54%.

Map shows how states compared for auto insurance rate hikes since 2012

What Can Floridians Do if Their Car Insurance Rates Are Raised?

If your car insurance is becoming less and less affordable for you, there are several key steps you can take to address the issue.

Check out rates at other insurers

First, assess whether there are cheaper options for your coverage. According to Nielsen survey data, only 25% of Floridians with auto policies have shopped for new insurance in the past three years.

We recommend drivers search for a new policy once a year or so. For example, drivers in Miami may see annual rates vary by several thousand dollars. There's no way to know if your current policy is overly expensive until you take the time to shop around once in a while.

Make sure you're only paying for coverage you need

Adjusting the limits of your coverage is another way to save money on your auto insurance. For example, a car that is more than 10 years old or worth less than $3,000 probably doesn't need to have comprehensive or collision insurance — the cost of your insurance will be higher than the declining value of your vehicle. Eliminating comprehensive and collision coverage cuts your rates dramatically.

You should also look at your liability coverage limits. Make sure that they make sense in the context of your assets and the likelihood of your getting involved in a lawsuit. If you're confident in your ability to drive safely and want to prioritize savings, you might also adjust your liability limits to meet Florida's minimum requirements.

Apply for discounts from your insurer

Discounts are another easy way to save money on your auto insurance. In Florida, there are defensive driving courses which can save you 5% to 10% on your premium. Another example is the good student discount: drivers with children with at least a 3.0 GPA can qualify for a 10% discount.

Sources:
Nielsen iClout data
Ratefilings.com

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