State Farm Rates Rise in Florida

State Farm Insurance Company put the 2.7 million drivers for whom it provides auto insurance in Florida on notice when they announced that they were going to raise their insurance rates in the state.

According to State Farm, their Mutual company policies will be increased by 9.2% statewide, while the Fire & Casualty company policies will be increased by 11.8%. State Farm operates under a variety of different companies across the US. The difference between the customers of these two companies is typically the history of accidents and convictions of the insured drivers. Mutual company policies are the most popular. They have the lowest rates for their clients who are usually considered the more careful and responsible drivers. On the other hand, Fire & Casualty company policies are reserved for drivers who have a bad record and who are considered to be “high risk” or “dangerous.”

Jack DcDermott of the Florida Office of Insurance Regulations declared that there’s been a growing number of bodily injury claims throughout the state of Florida. Personal Injury Protection expenses as well as fraud have also risen in the past few years.

In these tough economic times people are willing to do whatever it takes to make money, even if it means fraud. For many of these drivers, fraud seems like an easy and simple way of generating large amounts of money with minimal. As the costs of claims keep going up along with the number of fraud cases, insurance rates continue to rise not only in the state of Florida, but nationwide.

State Farm doesn’t seem to be alone in raising insurance rates in Florida. Allstate is another insurance company who has recently increased its rates. Beginning January 11, 2010, Allstate clients under the Fire & Casualty policy have experienced a 16% increase in their prices.

March 04, 2010, Posted by Rainy Day Mitch