Courtesy Kyle Baroneĭrivers in the Sunshine State are paying an average of $3,183 a year for full-coverage policies - up 15% from 2022, according to a recent report from Bankrate. His car insurance provider said that the rate increases, among other factors, are a direct result of the more frequent extreme weather hitting his home state, Florida. Yet he's seen his car insurance rates increase from $140 a month in 2020 to his current rate of $278 a month. Kyle Barone says he hasn't had a single car accident. He expects his rates will go up again in January when his policy renews. But after investigating further the agent explained to him that a slew of recent hurricanes in Florida were behind his increase.īarone tried shopping around for better rates, but said other insurers gave him comparable or higher quotes. The agent he spoke to seemed surprised by the increase as well, he said. Baffled by the increases, he reached out to USAA’s national customer service line to see what had prompted the change. “It’s insane,” said Barone, who will soon be joining Norwegian Cruise Line as an ESG manager. While that insurance is for a 2022 Porsche Taycan, even friends of his who drive lower-end models are paying more for car insurance, he told CNN. Barone told CNN his father, who also has USAA auto insurance, but lives in Tampa, said he saw his rate almost double six months ago from $245 a month to $409 a month. He’s not the only driver dealing with this. His rate would have been at least $50 a month higher if he didn’t lower his liability coverage and increase his deductible to get a cheaper rate, he said. Then, last month, USAA increased his rate to $278 a month. Barone, who lives in Jacksonville, Florida, didn’t see another increase until February, when USAA informed him that his rate would be going up to $226 a month. When he got a new Volvo sedan in 2021 his monthly rate increased slightly to $170. In 2020, Barone, 26, was paying $140 a month for car insurance. ![]() Kyle Barone is experiencing some of that first-hand. To compensate, they’re raising rates - or, in some cases, pulling out of states that are prone to extreme weather - according to Insurify, an insurance comparison website. That’s because insurance companies have to cover more claims as a result of these events, leaving them with higher losses. ![]() That’s the biggest annual increase since 1976.īut in Florida, where extreme weather episodes are increasingly more prevalent and destructive, the cost is hitting even harder. ![]() Across the United States, the cost of car insurance is up 19% compared to a year ago, according to August’s Consumer Price Index report released on Wednesday.
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