TAMPA, Fla., May 31, 2024 /PRNewswire/ -- AutoInsurance.org recently released a report on insurance companies pulling out of Florida and other high-risk states like California.
While many companies have discontinued coverage in these states, those that still offer coverage have rapidly increased annual premiums by $150 on average since 2023 and a combined $450 since 2021.
Many providers have calculated their risk in Florida and decided they're likely to lose money in the region.
Consumers face a lack of access to insurance policies for both car and home insurance. AutoInsurance.org reports that the following companies have discontinued writing new auto insurance policies in Florida:
Successful businesses avoid losing money, so many providers have pulled out of the Florida market.
Several risks combine to create a situation with a high probability of loss for auto insurers.
First, significant storms are prevalent in Florida. Sitting between the Atlantic Ocean and the Gulf of Mexico, Florida is in the path of many hurricanes. These storms can damage or destroy vehicles by flooding, broken branches, and flying debris.
Second, the population increases traffic. Higher traffic results in a more significant risk of crashes. Additionally, higher population density means more people are affected when a hurricane causes damage.
Third, insurance laws in Florida have made suing worth people's time. As a result, a high number of people sue insurance companies. Scams contribute to this growing sector.
Although fewer competitors offer coverage in Florida, there are still several options. Drivers can start their journey to finding the best fit for their needs by comparing quotes.
Once a driver narrows down the companies that offer the best deal on premiums, they should research the reliability and stability of the contenders.
Melanie Musson, a nationally recognized auto insurance expert with AutoInsurance.org, encourages Florida residents, "Fortunately, getting auto insurance is not as problematic as securing home insurance in Florida, so most drivers will find success securing coverage in the competitive marketplace."
Read AutoInsurance.org's entire report here: Auto Insurance Companies Pulling Out of Florida.
SOURCE AutoInsurance.org
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