JACKSONVILLE, Fla. – A recent Labor Department report reveals a significant surge in auto insurance costs nationwide, with April seeing nearly a 2% increase, culminating in an annual rise exceeding 22%.
Mark Friedlander, spokesperson for the Insurance Information Institute in Florida, highlighted that Floridian drivers are facing some of the highest average premiums in the United States.
Several contributing factors are driving these hikes, many of which might not be immediately apparent to the average consumer:
Increased frequency and severity of accidents
Rising repair costs
Impact of severe weather events
An uptick in personal injury lawsuits
Proliferation of staged accidents and other fraudulent schemes
Additionally, Friedlander emphasized the impact of uninsured motorists on overall insurance costs in Florida.
“Florida has 15.9% of its drivers uninsured. That’s about one in six drivers. This not only heightens the risk on the roads but also drives up costs for everyone. Those of us who comply with the law and purchase the necessary insurance end up subsidizing the costs for those who don’t,” Friedlander explained.
To mitigate these rising costs, drivers can take several steps to save on their car insurance:
Maintain good credit and a clean driving record: Avoid accidents and moving violations for three to five years.
Seek out discounts: Insurance companies often offer discounts, but consumers need to actively search for them.
Bundle policies: Combining car and home insurance can lead to significant savings.
Defensive driving courses: Completing such a course might lower premiums.
Upfront premium payments: Some insurers offer reduced rates if the premium is paid in full at the start of the term.
Special discounts: These may be available for active duty military, veterans, or senior citizens.
“If these measures don’t provide sufficient relief, it may be wise to shop around,” Friedlander advised. “We recommend obtaining at least three quotes to compare costs and coverage options. The goal is to secure the most comprehensive coverage at the best possible price.”
