Smart Auto Insurance Blog

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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Many states are still working under the no-fault auto insurance ruling and experts believe this is causing a crisis in the auto insurance industry.  The laws were originally put into place to stop ambulance chasing lawyers from submitting small-claims cases, and it helped car accident victims receive funds quickly instead of waiting for the determination as to who was at fault.

Unfortunately, these laws are backfiring since many believe its contributing to fraud, rising medical costs, large benefit payouts, and excessive lawsuits.  Auto insurance quotes in Florida are skyrocketing and many are blaming their no-fault laws according to “Why Does Everyone Hate No-Fault Car Insurance?” by Barbara Marquand on FoxBusiness.com.  Some insurance companies have actually limited their business in states with no-fault insurance laws since it ends up being so much more expensive for the insurer.  This ends up affecting competition and can drive up auto insurance rates.

Currently, 12 states and Puerto Rico have no-fault auto insurance laws including Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.  The laws allow policyholders to collect funds for car accidents from their own insurance company regardless of who was at fault.  The laws also prevent people from suing for pain and suffering unless their injuries are a certain extreme.  Florida is the nation’s staged-accident capital and this of course drives up Florida auto insurance quotes.  Many industry experts believe no-fault auto insurance needs to be eliminated altogether or the crisis will continues and rates will keep going up.

More and more Florida residents are purchasing scooters to get them around as gas prices increase and economic times stay tough.  A scooter is different from a motorcycle in the sense that they have a step through design where a rider can sit on the seat with their feet flat on a floorboard.  Their engines are also closer to the rear wheel.

One thing often over looked when someone buys a consumer is what type of insurance will need to be carried so the vehicle is covered.  Check with your county for the specific regulations and shop around for Florida auto insurance quotes to see who offers the best deal.  Where insurance is required, it’s usually a minimum amount of personal liability coverage but laws vary so be sure to check with your local motor vehicle authority.

Another thing to remember is that you need a valid drivers license to drive a scooter in most states.  You want to be sure the scooter is properly registered, just like a car, and that your license is current and accurate with an updated address.  You must follow all traffic rules while driving your scooter just as you were driving a motorcycle or a car.  Enjoy your scooter rides, but be safe, always wear a helmet and follow all regulations to avoid any fines or accidents.

According to the article “Florida Senate Panel Advances Auto Insurance Bills” by Brent Kallestad on Business Week’s website, two Florida bills aimed at cutting down the amount of fraud running rampant through Florida moved passed an important Senate panel.  The Senate Banking and Insurance Committee barely approved the bills after some debate between lawmakers.

Legislature is trying to get a handle of the amount of auto insurance fraud that is frustrating insurers enormously.  The bills move forward after being backed by the insurance industry which would give them more power to deny claims they deem suspicious for fraud.  A similar bill is moving through the Senate as well.  Florida auto insurance quotes are impacted by the amount of fraud going through the state, so hopefully as fraud decreases so will auto insurance quotes Florida.

The bills are guaranteed to pass.  Mark Cedarberg, an Orlando lawyer, cautions lawmakers about giving the insurance companies too much freedom.  He believes that if the bills pass it will make it harder on honest people, including honest doctors who need to be paid.  Once an auto insurance company decides to deny a claim it will be challenging to get it reversed.  Insurers, medical providers, and lawyers all agree that fraud is too prevalent, but they can’t agree on the best solution to fix the problem just yet.

A survey released earlier this week revealed some good news for Florida residents.  Insure.com released a survey which found Florida’s average annual premium for auto insurance was $1,476 which is $85 less than the national average.

Florida does happen to be one of the most expensive markets for property insurance, but the auto insurance market stays competitive according to the article “Florida Auto Insurance Cheaper Than Average, Survey Finds” found on FloridaTrend.com.  Compared to all of the other states and Washington DC, Florida ranks 29th overall in expensive auto insurance.  The most expensive states from the survey were Michigan at $2541, and Louisiana at $2453.  The cheapest auto insurance rates will be found in Vermont with an average premium of $995 and South Carolina at $1095.

Florida auto insurance quotes being lower is great news for residents since they are already paying higher rates for property insurance.  This is probably due to hurricanes which can devastate properties and cause homeowners insurance rates to soar.  Lower auto insurance quotes Florida help offset those costs.

According to the article “Broward County Cracks Down on Car Insurance Fraud” found on MiamiHerald.com, auto insurance fraud is through the roof in Florida where studies indicate 23% of drivers were uninsured in 2007.  Representatives from 17 auto insurance companies throughout Florida joined forces with the Broward County Sheriff’s Office during a crack down on drivers on the road with no auto insurance coverage.

The recent crackdown on insurance fraud in Florida was a one day initiative put together by the sheriff’s office alongside the National Insurance Crime Bureau which works hard to combat insurance fraud.  Auto insurance agents actually waited at the sheriff’s substation as deputies called in to confirm auto insurance information during traffic stops.  They handled 39 calls by 3pm.  Deputy Marty Chastain advises that similar crackdowns are planned for the future and warns they will be random.

Not only is insurance fraud inherently wrong, but it causes Florida auto insurance quotes to rise across the board.  The innocent end up paying for the perpetrators’ schemes.  Auto insurance quotes Florida will need to rise to make up for the losses caused by auto insurance fraud.  Let’s just hope it’s not substantial and the efforts to bring fraud down have an impact.