Florida Auto Insurance Quotes Soar

Florida has not had a hurricane for years, yet Florida auto insurance quotes continue to rise. It’s been six years since the devastating Hurricane Wilma took it’s toll and since then every day claims for homeowners and auto insurance, including reopened claims, have risen 80%. At this point insurers feel like there is not choice but to ask for higher homeowners and auto insurance rates according to the article “Soaring Claims Drive Florida Insurance Rates Higher” by Kenric Ward on SunshineStateNews.com.

Insurance companies are asking for rate increased for a couple of reasons. First, there is a certain projection of future claims due to natural disasters and most states witness this type of increase. Secondly, they are raising rates due to claims that have already been paid out that went above and beyond previous predictions. Lynne McChristian, a Florida representative for the Insurance Information Institute confirms that these rate increases are due to future and past claims.

Just recently, Allstate Insurance Co and two of their affiliates asked for rate increases averaging 30%. Castle Key Insurance Co. and Castle Key Indemnity Co. reported that there could be rates increases as high as 68% for individual customers. These astronomical rate increases can devastate families financially, but it seems to be a no-win situation for everyone involved. Some industry officials are blaming such increases on a new law, only affecting the state of Florida, which says insurers must pay full replacement costs for home repair upfront. In addition to this, policyholders have up to five years to file a claim due to a particular hurricane which is throwing projections off. The Insurance Information Institute reports that claims costs are increasing on average around 17% per year, and if this continues, no one will be able to afford a quality home or auto insurance policy.

Written by Sara Smart

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