Americans Shop Around for Insurance More Than Ever as Costs Soar
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Florida is witnessing a surge in auto insurance policy changes, as rising premiums squeeze household budgets. According to a 2024 report from LexisNexis Risk Solutions, the number of insured individuals shopping for new quotes jumped 16% year-over-year in Q2, with that figure spiking to over 30% in July.
This trend reflects a broader movement among Floridians to find cheaper alternatives, driven by skyrocketing auto insurance premiums, which have increased nearly 50% since the pandemic. The escalating cost of car repairs, parts, and inflationary pressures has pushed consumers to shop more aggressively for better rates. Chris Rice, a LexisNexis executive, notes that cost is now the primary motivator for switching policies, a departure from the past, when life events like buying a new car or moving prompted changes.
The home insurance market in Florida is also facing turbulence, with 70% of homeowners reporting price hikes and 12% saying they were dropped by their insurers, according to a Redfin survey. Climate-related risks, such as extreme weather events, are playing a role in driving up premiums and prompting some residents to consider relocation.
Rice describes the current premium increases as “unprecedented,” particularly among middle-aged and older Floridians, who are shopping for alternatives at an accelerated rate. This surge in shopping activity signals the financial strain many in these demographics are experiencing.
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