Why your auto insurance rates are rising

Auto insurance rates are rising and in some instances they are rising by a lot. One factor is the rising cost of the vehicles, inflation is a factor, car parts are expensive because of supply shortages. And in Florida factors including insurance damage claims, high car theft rates and a higher percentage of uninsured drivers in our state make our rates rise even faster than some other states.

The South Florida Sun Sentinel reviewed major auto insurers’ rate filings with the Office of Insurance Regulation and found that nearly all of the largest carriers imposed steep increases several times that took effect over the last year:

• United Services Automobile Association (USAA), insurer of more than 1 million vehicles in Florida, increased rates three times since August 2022 for each of its four lines of insurance. The total increased percentage rates range from 33.9 for its Garrison Property & Casualty line to 57.3 for its largest USAA line.
• State Farm Mutual Automobile Insurance Co., which insures 2.9 million Florida vehicles, took three rate increases this year totaling 30.2 percentage points.
• Progressive took four increases since July 2022 totaling more than 30 percentage points for each of its two major lines that cover more than 3.3 million vehicles in the state.
• Liberty Mutual’s three increases since June 2022 drove average premiums up a total 44.3 percentage points for owners of the 156,654 cars it insures.
• And Geico General Insurance Co. hiked its rates twice since July 2022, totaling 23.8 percentage points for its 2.5 million Florida vehicles.
• Auto Club South, also known as AAA, recently submitted a plan to increase rates for members of its “legacy” brand by 39.7%, to be imposed over two years.

Asked by email to explain the sharp increases, spokespersons for several of the companies cited similar reasons, including high inflation, material shortages and high labor costs.

And Andrew Fernath, spokesman for USAA, pointed out that his company only sells to veterans and their families and offers “many personal discount opportunities that are not reflected in state filings.”