Florida currently sits at number four in the list of most expensive auto insurance rates in the country, right behind Washington D.C., Louisiana, and New Jersey. Because of the expense, Florida also sits at number five on the list of most uninsured motorists on the road at nearly 24 percent of drivers on the road without it. Florida auto insurance rates have always been statistically high, so it is never good news to hear that these rates are still climbing. However, Florida auto insurance is increasing. In fact, these rates may be climbing at about a rate of twice-yearly increases since 2009. The climbs are even reflected in nationally large insurance companies such as Geico and State Farm.
How Large are These Increases?
Since late 2009, most insurance companies have been forced to raise their Florida auto insurance rates four times, at an average of 6 percent each quarter. These increases by auto insurance companies do not represent increases in coverage according to https://floridainsurancequotes.net/auto-insurance/how-to-find-low-cost-car-insurance-for-florida-residence/, just the billing of customers. The average increase is about $25 dollars per every $100 normally spent on their coverage just a few years ago.
These increases reach about 30 percent when compared over the last few years. One of the most obvious companies to follow in these increases is Geico, one of Florida’s most popular auto insurance providers. Geico insurances levied a set of rate escalations in 2011, equaling an average of about 10 percent. Similarly, Geico Indemnity executed yet another rate increase of 9 percent increases during the same year.
So why are Florida Auto Insurance Rates Going Up?
What reason did Geico give their customers for these price spikes? Geico addressed their ever-rising auto insurance in Florida with a letter to their customers. In this letter, Geico attributed the extra charge to a persistent rise in the number of customers claiming injuries in accidents, despite the fact that the number of accidents reported was steady and not on the rise. However, Geico is not alone in these increases. Progressive has seen a rise in the amount charged to its customers for their Florida auto insurance rates of about 10 percent across the board.
State Farm Insurance, currently Florida’s largest insurance provider, seconded Geico’s reasoning for the increase in cost. The additional cost was stemming from the continuingly climbing amount of customers claiming their personal injury protection. This protection is used to pay for customers and passengers injured in auto accidents. According to Florida law, this coverage will aid in the payment of medical bills up to $10,000.
Some of these claims can be pointed to as fraud. Insurance investigators have even uncovered some drivers staging accidents with others and using the personal injury protection to collect the money from the insurance payouts.
Because of this, insurance companies like FloridaInsuranceQuotes.net are being more thorough in the investigation of claims from its customers. Something that is both good and bad for the honest customer. Because of these investigations, customers will often have to wait longer to collect on their insurance. However, without these investigations, it is difficult to say how much cheap auto insurance in florida would be sitting at now.