Drive on through
Watch for climbing auto insurance rates.
By Business Observer Staff Dec 8, 2017
It’s not just gas prices that are going up. Car insurance premiums are also on the rise.
CarData, a firm that provides companies vehicle reimbursement plans, says premiums have increased nationally as much as 7.4%. The five states with the highest premiums? Florida, Louisiana, Michigan, New Jersey and New York.
Florida’s mandatory $10,000 Personal Injury Protection coverage accounts for a quarter of insurance premiums, according to a CarData statement. Another reason why premiums are so high in the Sunshine State? Stormy weather. Hurricanes and tropical storms threatening Florida spell increased comprehensive coverage. And since Hurricane Irma hit the state, CarData says Florida drivers can expect rates to climb higher.
Florida also comes in second nationwide for uninsured drivers. The state has 24% uninsured drivers, according to the report.
Louisiana’s high car insurance premiums are explained by a handful of factors, including one it shares with Florida — natural disasters. Other factors are “overly generous claim settlements,” according to the statement, in addition to badly maintained roads and the ability to sue insurance companies directly.
High traffic density and Personal Injury Protection coverage are some of the reasons the other states make the Top 5.
Florida might not be on the list of high-cost auto insurance states forever: A bill is expected to make its way through the legislative session in January that could repeal the state’s Personal Injury Protection law.