FLORIDA — If you’re paying more for car insurance, you’re not alone. A study by the online insurance shopper, Insurify, shows Floridians pay the third highest auto insurance rates in the country — following New York and Nevada.
The Insurify study shows the average cost of full auto coverage in Florida is $243 a month, which is 44% higher than the national average. Insurance experts say Floridians can blame lawsuits and storm damage for the higher rates.
“Most carriers have an actuarial loss, which means that they’re losing money every single year when they compare premiums to claims that are paid out,” said James Cleveland, president of Insurance Services of Central Florida.
As a certified fraud examiner, Adam Kemmerling is good at crunching numbers. He’s an accountant trained to find questionable financials.
“If anybody knows about numbers, it’s me. That’s what I do,” said Kemmerling.
When Kemmerling recently searched for cheaper quotes for car insurance for his family, he became convinced that something had to be way off. The cheapest quote was about $17,000 a year to ensure his family of four drivers. That averages out to more than $350 per person, per month.
“I mean, that’s a hundred dollars less than my mortgage,” he said. “It just amazes me, it just absolutely amazes me. I’ve never seen insurance that high,” said Kemmerling. “But I guess we’re in a new time, unfortunately.”
Kemmerling says two of the insured drivers are teenagers.
“We know they’re inexperienced, but come on? Everybody was 16 once. Have a little bit of sense,” he expressed. “We all know who’s really paying the insurance. It’s the parents.”
Kemmerling said he and his wife have excellent driving records.
“My wife is like the pope of driving. She does not go over the speed limit. She will not get in an accident. She will never turn in front of somebody,” he explained.
The high insurance rates have Kemmerling considering some tough choices. He wants to buy out his car’s lease, so he won’t be required by the leasing company to pay the highest level of coverage. He’s also considering giving up driving altogether. He says he’s priced it out and it would actually be cheaper for him to use rideshares to get from home to his office in DeLand.
But it’s a decision he’s struggling with.
“I’ll let somebody drive me around,” said Kemmerling. “People say to me ‘Wouldn’t that kill you not to drive?’ No, not at all. But the problem with that is, I’d have to cancel my license with the State of Florida, which means I can’t drive no more. So why do I have to give up my right to drive to save insurance money?”
If it comes down to which bill to pay, the choice for him is clear.
“If I have to choose, honestly, between paying my rent and paying my insurance, or paying my mortgage and paying my insurance? I’m sorry the mortgage is getting paid — it’s not happening — take me to jail,” said Kemmerling. “At least there I have a roof over my head and insurance isn’t putting a roof over my head. It’s sad that some people are going to be faced with that.”
Luckily for now, Kemmerling can pay both. But at $17,000 a year, he says at some point, something has to give.
“I think there’s too many people getting their pockets fat, and it’s not right, and it’s at the cost of us,” said Kemmerling. “And I know people say Florida doesn’t have state income tax, but yeah, we’re getting taxed everywhere else.”
Insurance experts say if you’re looking to reduce your car insurance premiums, you can consider reducing your coverage limits and raising your deductible.
Last year, Gov. Ron DeSantis signed into law a measure designed to reduce frivolous lawsuits under Florida’s no-fault insurance system.
During the current legislative session, Florida lawmakers have proposed two bills, SB 464 and HB 653, that could further reduce insurance fraud by eliminating the state’s requirement for drivers to carry $10,000 worth of personal injury protection.
Instead, drivers would be required to have a certain amount of bodily injury coverage. One lawmaker estimates it could save car insurance customers as much as $350 per year.
