More Americans are shopping for new car insurance policies this year than ever before, as rising premiums push drivers to switch providers in search of big savings, according to a recent study.
Johnny Farias has three personal cars and two work vehicles for his electrician business. That means five sets of car keys—and a lot of insurance policies to manage.
When his premiums went up on renewal, he started shopping.
“They said they had to do a monthly increase of $1,088,” Farias said. “If it went up $100 I’m pretty sure we wouldn’t have done anything.”
After switching providers, he said he saved about $2,000 over six months.
“That’s a mortgage payment,” he said.
Study shows record-high number of shoppers
J.D. Power released a study in May that found 57 percent of auto insurance customers have shopped for a new policy this year — the highest rate the firm has ever recorded.
“People’s financial stability has changed over the last couple of years,” said South Florida insurance agent Steven Marcus, who added that higher costs are driving more customers to look elsewhere.
Florida sees slight rate relief after sharp increases
Data from the Florida Office of Insurance Regulation show that the top five auto insurers’ rates rose by an average of about 4 percent last year, and nearly 32 percent the year before. This year, however, regulators expect rates to drop by about 6.5 percent.
Officials attribute the decline to legislative reforms designed to reduce costly lawsuits.
Marcus said shopping around in Florida can also pay off because insurers use different formulas to assess financial stability. On top of that, he noted, many companies offer new customer discounts as high as 20 percent.
Shopping advice for drivers
Farias said he also saved about $400 on coverage for his business vehicles.
“Me and my wife started shopping around because that’s something we couldn’t afford anymore,” he said.
Marcus said rates are generally higher in Miami-Dade County compared with Broward County. He recommends getting several quotes and reading them closely, since some providers may not include all the same coverages as a current policy.
