It is the question I get asked most often: Why are my rates going up?

I agree with the premise completely. Insurance in Florida is high compared to almost any other state. While it is frustrating, there are two principal reasons driving these costs, and understanding them can help you make better decisions.

The first reason is the number of uninsured drivers. We have a frighteningly high percentage of people driving on Florida roads without any insurance at all. Some studies estimate it is around 40% of drivers. That is a staggering number. Even if you are driving safely on I-4 or the Turnpike, if one of those drivers crashes into you, they can’t pay for the damage. That means your insurance company has to pick up the tab, which raises rates for everyone who is doing the right thing.

The second reason is litigation. Florida is the most litigious state in the country. There is a reason you see those massive billboards for personal injury lawyers on every major interstate. When accidents happen, lawyers are very aggressive about suing for payouts. Because of this, nearly $50 of every $100 you spend on a premium goes strictly toward the “Bodily Injury” liability line item.

While we can’t control the state averages, we can look at your specific risk factors. One surprising factor is the car you choose to buy. Insurance statistics show that certain cars have higher risk ratings than others. For example, a BMW has a higher risk rating than a Mercedes.

Even comparing everyday cars, a VW Passat often carries a higher premium than a Toyota Camry or a Honda. Before you buy a car for yourself or your child, give us a call with the VIN number.

We can tell you if that specific model is going to spike your insurance costs before you sign the paperwork.