Skyrocketing Insurance Rates

What’s supposed to alleviate problems for consumers is now causing headaches. insurance premiums are soaring across the country, costing drivers and home buyers thousands per year and in some cases, 30 to 40% annual increases.

So i want to start with car insurance. rates are more expensive than ever. they’re projected to be up 30.4% as of December. but in certain states, those numbers can jump even more. California, for example, just approved hikes up to 40% for various providers going into 2024.

Now, hikes can be just as high for home insurance. 9% is the national average, but a number of states like North Carolina and California are seeing increases over 40%. I want to look at Florida though in particular, because that really demonstrates the burden to consumers. If you’ve got a $300,000 home, Floridians pay on average $9,079 annually, that is more than five times the national average.

And so we spoke to insurance companies, and they say that more accidents, more weather events are forcing them to hike these insurance rates. We spoke to a Florida realtor who says inflation of underlying assets is a big driver. Jeff Lichtenstein of Echo Fine Properties says: “citizens, five years ago was something that really was the last resort where right now it’s writing 90% of the policies, from the people I talked to. It’s affecting people more at the lower end of the spectrum who are getting into it.” Now it’s hard to imagine, but the consumers who get those high rates may actually be the lucky ones.