The Price of Florida Insurance

The national average cost of combined insurance types per house hold is 7%. Floridians pay nearly twice as much on average—14%. ** Home and auto policies make up the bulk of excess premiums that burden Florida residents.

Why???

• Higher Risk – Florida’s weather risk and higher population cause a higher “generalized” risk. Part of this is also that there is greater population living in coastal regions that pose the greatest risk when storm impact the state.
• Higher Medical expenses with accidents/injuries— According to the National Highway Traffic Safety Administration (NHTSA), the average cost of non-fatal injury in a car accident is approximately $29,200. Three times Florida’s mandatory 10K personal injury protection.
• Higher litigation costs—if the insurance policy falls short to cover injuries, litigation typically occurs to cover damages to person or property.
• Reinsurance –is the insurance company purchasing insurance for their own claims. This occurs if the insurance company doesn’t have enough capitol to back up claims from a large potential threat like hurricanes.
• Florida no-fault law—this means your own insurance covers your medical bills and lost wages after an accident, regardless of who was at fault. This results in higher number of claims for the state. Even though the accident may not be your fault the claim and the amount of claim could affect your insurance premium or the ability to switch insurance carriers.

What can you do?

1. Shop for insurance at every renewal period. Ask your existing agent to compare prices and/or find an independent broker, like KM Assurance, to shop and compare premium prices across many carriers.
2. Wind mitigation inspection reports (good for 5 years) provide significant discounts to the hurricane premium (50-80% of homeowners policy). If you make improvements to your home's wind-resistant features, such as installing a new roof or impact-resistant windows, you should get a new inspection to potentially qualify for additional discounts. 
3. Drivers of 55 years or older can take a mature driving course, that provides additional discounts of 5-15%. It’s valid forever, unless the driver receives a violation. For more information go to: https://www.stateofflorida.com/mature-driver-course/.
4. Consider reducing deductibles—this requires caution and advice from your agent/broker. Increasing deductibles always results in increasing out of pocket expenses if a loss occurs. It’s important to analyze the reduction in premium vs the amount of deductible increase.
5. Always discuss possible discounts with your agent/broker. Additional discounts include:

• Good and/or distant student
• Drivers’ education course
• Paperless billing
• Multi-car and homeowner’s discount

How to reach government officials to express insurance concerns? Click

Disclosure: The information provided is for general educational purposes only and may not apply to your specific policy, coverage, or insurance company. Always review your policy documents and consult directly with your insurance carrier or licensed agent for details about your unique situation.

*Insurance coverage applies only to approved losses as defined in your insurance policy. Exclusions, limitations, and deductibles may apply.