In 2023, prices for almost everything are going up, including the cost of insurance for business vehicles. If you use a vehicle for your business, you might have been surprised by how much the insurance costs. With all the expenses of running a business, high insurance bills are tough to handle.
It’s not just in Florida—insurance prices for cars and trucks are increasing nationwide, mainly because of inflation.
But why does it seem like Florida has it even worse? Reports say that insurance rates in Florida have shot up by 30%. Some insurance companies are even leaving Florida because of this. For example, Farmers Insurance stopped selling their insurance in Florida. They’re the fourth company to do so in the last year and a half.
What causes auto rates to rise?
Busy roadways
- Florida is famous for its beautiful beaches and fun theme parks, making it a top spot for tourists. It’s also the most popular state for people to move to. With more tourists and new residents driving around, there are more chances for accidents, causing insurance rates to rise.
Weather-related exposure
- One of Florida’s well-known traits is its annual hurricanes. These powerful storms wreak havoc and are a significant cause of vehicle damage in the state. With their strong winds, heavy rains, and sometimes even hail, hurricanes can leave vehicles battered, dented, and sometimes wrecked completely. The aftermath of these storms results in many cars needing repairs or replacements due to the damage caused by the extreme weather conditions, making hurricanes a primary culprit for vehicle damage in Florida.
Litigation expenses
- Since Florida is a no-fault state, there’s a greater chance that lawyers will get involved when accidents involve multiple people. This leads to insurance companies raising costs for policyholders to cover these extra expenses.
Uninsured drivers
- Compared to other states, Florida has a concerning number of uninsured motorists, at 20.4%. This high rate contributes to the increase in insurance costs for everyone. Florida ranks sixth among the top ten states with the most uninsured motorists. Because of this, people in Florida are more likely to have accidents involving uninsured drivers, which pushes up insurance prices for everyone in the state.
How can I save money on auto insurance?
Many factors go into the pricing of auto insurance rates, such as age, driving history, and so on. If you’re looking to save on auto insurance in general, here are a few things you can do:
1.) Keep a clean driving record: An untainted driving history is number one. This is the easiest and most effective method for reducing insurance costs, as insurers often offer safe driver discounts.
2.) Look for discounts: You can often save money on insurance by bundling your home and auto, opting for annual payments, and taking driving courses to receive discounts.
3.) Avoid automatic renewals: Review your policy before it auto-renews to ensure you’re receiving the most suitable coverage at the best price.
4.) Consider usage-based insurance: A usage-based or pay-per-mile insurance program could benefit you if you’re driving less than 10,000 miles per year.
How do I save on commercial auto insurance?
If you’re looking to save on commercial auto insurance for your business in Florida, here are a few tips:
1.) Pay attention to employees’ driving records: Having a clean driving record is a great way to receive discounts on auto insurance. This goes for business owners and employees, too! Make sure that you’re hiring the safest drivers to operate your vehicles.
2.) Look for business discounts: Many companies offer discounts for businesses, such as business owner discounts, paid-in-full discounts, and discounts for holders of commercial driver’s licenses.
3.) Opt for a higher deductible: Choosing a higher deductible can make for cheaper insurance, saving your company money.
Conclusion
The surge in auto insurance costs affects not just Florida but the entire country, primarily due to increased road traffic, frequent accidents caused by tourism and migration, weather-related damage from hurricanes, higher litigation expenses, and many uninsured motorists. These factors significantly impact the insurance landscape, leading to rising premiums for everyone. However, there are ways to mitigate these escalating costs.
Maintaining a clean driving record, seeking discounts, reviewing policies before auto-renewal, and considering usage-based insurance are practical steps for general auto insurance.
For commercial auto insurance in Florida, emphasizing employees’ clean driving records, seeking business-related discounts, and opting for higher deductibles can help reduce costs. While the increase in insurance expenses is beyond our control, being vigilant about potential discounts and taking proactive measures can help navigate and lower the impact of these rising costs.
As commercial auto insurance rates continue to climb, we aim to ensure you secure optimal coverage for you and your business without breaking the bank. Contact Delgado Insurance today for a tailored quote!