State Farm Seeks Higher Auto Insurance Rates in Florida
If approved, State Farm will increase rates on auto insurance in Florida by a statewide average of 9.2 percent beginning in June, citing increased costs related to claims and a rising frequency and severity of car crashes involving uninsured drivers.
As the top writer of automotive coverage in the state, the company has requested a 9 percent increase for State Farm Mutual Automobile Insurance Co. coverage and 11.8 percent jump for consumers with policies from State Farm Fire and Casualty Co.
A spokesman for the Florida Office of Insurance Regulation, Jack McDermott, said, "We have not observed any significant changes in the auto insurance marketplace in Florida, although recent rate filings have shown some indications of an upward trend in bodily injury expenses."
The Office indicated that State Farm Mutual collected about $2.5 billion in auto premiums in the state in 2008 and was 12th in the state for fire claims with approximately $204 million in premiums taken in.
According to the Bureau of Labor Statistics, auto insurance rates increased by 4.5 percent nationally in 2009. The jump is attributed to higher costs for body work, associated health care, and legal expenses.
The top five insurers in Florida in 2008 were State Farm with 21.9 percent of the market, Berkshire Hathaway Insurance Group with 14.5 percent, Allstate Insurance Group with 14.1 percent, Progressive Insurance Group with 10.7 percent, and USAA Group with 4.9 percent. State Farm has a Best's Financial Strength Rating of A++.
