Editorial: Lower Insurance Rates? Costs Still Sky High

Florida Insurance Commissioner Mike Yaworsky, an appointee of Gov. Ron DeSantis, recently touted some expected decreases in car insurance rates.

Yaworsky said the top five auto insurers in the state (Progressive, USAA, State Farm, AllState and GEICO) are going to lower their rates by 6.5% this year.

That comes after 36% increases the previous two years, according to the state insurance office.

Industry announcements of lower rates are welcomed by DeSantis and Republicans in Tallahassee as proof reforms aimed at reducing fraudulent claims and litigation against carriers are working.

"The continued reduction in auto insurance rates is yet another sign that Florida's reforms are working," DeSantis said in a statement late last month. "We will protect our reforms from those who seek to undo them and continue to fight for Floridians."

The big insurance carriers make up 78% of the Florida auto insurance, so easing off the premium gas pedal is appreciated.

But we are going to need a little more proof in the pudding that Florida's insurance situation is improving both for homeowners and drivers.

We don't need to tell you about the challenges Florida has faced on the insurance front with sky-high premiums and troubles with claims (including those related to storm damage.)

The average car insurance premium in Florida is $3,874 per year, according to financial firm Bankrate LLC.

That's third highest in the country behind only New York ($4,031) and Louisiana ($3,953) and is more expensive than car insurance in California ($3,102).

The average homeowner's insurance premium is $5,728 annually in Florida, according to Bankrate.

That's again third highest in the country behind Nebraska ($6,366) and Louisiana ($6,184).

Florida certainly has an increasing company with rising insurance rates. Other states prone to hurricanes (which have become bigger and more destructive with warm Gulf and oceanic waters), wildfires and tornadoes (which are also more common and more severe with the warming planet) are seeing increasing insurance premiums as well as trouble with claims processing.

Oklahoma, Kansas and Texas all have average homeowners insurance costs north of $4,000 per year.

Florida has been trying to make strides with its insurance troubles.

The high costs of insurance are partnering with higher costs for housing, groceries and utilities to make Florida an expensive place to live.

Low costs used to be one of Florida's competitive calling cards — not any more.

But states are in a pickle when it comes to regulating the insurance industry.

If they are too cozy, then the industry has shown itself to be more than prone to raise premiums and even more prone to slow play, deny or lowball their customers when they deign to file claims.

Come down too hard and insurance companies will pick up stakes and leave markets and regions.

That means less competition or the creation of state-run insurers of last resort.

In short, there are no easy answers.

The partisan political dynamic of Republicans favoring the insurance industry while Democrats side with trial lawyers often doesn't help the people they are elected to represent.

Any indicators of easing insurance premiums (and other prices) are welcome.

But we all know that prices and the cost of living are up substantially since the pandemic, especially here in Florida.

And the next hurricane and its impacts on life, limb, property and insurance costs can be just around the corner.

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