Car insurance rates just had their biggest annual jump in 47 years.
 

And Florida is the most expensive state with people paying an average of $3,183 a year.

Car insurance rates just had their biggest annual jump in 47 years. This is why | CNN Business

I was so outraged at my rate hike this year, I decided to cancel everything except the legally-required liability insurance. My car is paid for, and I can afford to replace it, so why was I paying an insurance company 10% of the replacement cost every single year?

And that's when I discovered the problem. Liability is no longer a tiny fraction of your insurance bill. It's now three times the cost of your collision and comprehensive.

This is what happens when the lawyers run your state for their own amusement. In Texas, we put a stop to it with tort reform. But that was Texas, where laws actually mean something. Florida recently passed fake tort reform and then refused to enforce it, the same way they did with the fake roof insurance reform bill.

You will be able to afford your car insurance on the day you can watch your TV without being blasted with "Bogun, Munns and Munns" ads promising you "more".

My liability insurance coverage is less than half of my total premium with State Farm, and I have $1 million in liability coverage. I have no uninsured motorist because it is optional in Florida, and I would never file a claim under that coverage.

Why not file a claim?

Many experts recommend buying it.

Uninsured Motorist Coverage in Florida

Uninsured Motorist Coverage in Florida: The Truth About Uninsured Motorist Coverage

I have plenty of medical insurance to cover medical expenses. I also have liability, collision, and comprehensive auto insurance to cover my property and a lawsuit. The only other reason to file a claim would be for "pain and suffering", which would require a significant amount of coverage and, most likely, high attorney fees. $10K in coverage would basically be worthless. I would rather save the premium cost. The experts who recommend it are attorneys and insurance companies who benefit from it.

I guess if you drive a Rolls Royce you might manage to get a bill from State Farm where a million dollars of liability would be half your vehicle coverage.

Here in my world, these are the actual figures from USAA for a 2020 Kia Sorento and $150K of liability insurance:
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Total 6 month premium $618.65

Comprehensive $29.44
Collision $91.89
Total vehicle insurance $121.33

Bodily injury ($150K) $211.33
Property Damage ($50K) $77.39
Work loss $53.81
Total liability insurance $342.53

% liability compared to comprehensive/collision: 282%

Uninsured motorist $154.79
% Uninsured motorist compared to comprehensive/collision: 128%
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I would be very tempted to drop the uninsured motorist if we never carried any passengers. But my wife is always driving her quilting buddies to some "retreat" or other boondoggle, and with all the illegal "migrants" on the roads in Florida, that just seems like a sucker bet to me.

But I'll call a State farm guy, just to make sure USAA isn't picking my pocket. USAA has been the cheapest every time I've checked, but who knows? It sure would be interesting to see the numbers on your Rolls, though.

To clarify, here are my actual State Farm rates. I did forget to include the property damage liability premium in my original post. I drive a 5 year old Ford Escape, not a Rolls.

Bodily injury liability, $1 million - $180.25
Property damage liability, $500K - $56.93
Comprehensive, $500 ded - $43.24
Collision, $500 ded - $82.30
No fault, mandatory - $33.68
Total 6 month premium - $396.40

Note that my premium would be a lot less if I reduced the liability coverage. Regarding uninsured motorist coverage, if I drive someone around in my vehicle and they get injured by an uninsured motorist, I consider it their problem. But, if I cause an accident, I have liability insurance for my own liability. Good luck.

So your liability for 7 times the coverage is a third less than mine, and only 46% more than your vehicle coverage -- even though your vehicle coverage for a smaller, older vehicle is more than mine. Something's off here, but the insurance industry is so filthy with totally made-up numbers that I would never accuse you being the one who made them up.

I just find it a little hard to believe that a million dollars worth of liability from State Farm is a third less less than $150K from USAA. But I'll check and apologize profusely here if they offer me that deal.

By the way, State Farm is famous for their teaser rates to get you to switch. Could that be the answer? How long have you been with them? Or is your agent your brother-in-law?

I have a 12 month policy.

Bodily injury liability, $250/500 - $362
Property damage liability, $100K - $129
Medical Payments - $20
Uninsured - $250/500 - $227
Comprehensive, $500 ded - $54
Collision, $500 ded - $173
No fault, mandatory - $83
Extended no fault - $16
Extended Transportation - $20
Roadside Assistance - $22

Total $1106.00

It looks like I could save $263 by dropping med pay, uninsured, and extended no fault. Do most people have those coverages??

I don't have a brother-in-law. I switched from Allstate about 2 years ago because they raised my premium by 32 percent on renewal after being a customer for 27 years. I found that some companies would not provide more than about $250K in liability coverage. I feel like a million dollars is needed to have any real protection against lawsuits. My numbers are accurate and I didn't make them up.

You make a lot of sense, until you discussed 10K in un insured motorist coverage. That is the bare minimum you can buy. Agree more coverage cost more. If you have a bad claim or a family members death, you might second guess your choice to have good un insured motorist coverage.

Who is your agent? These #s seem to be too good to be true. Our umbrella policy(2 mil) is $225 alone for 6 months.

No fault(AKA PIP) is mandatory. Florida is one of the few and maybe the only state that still has this coverage(10K limit) Check your med pay limit. Bet $20 pays up to 2K. Policy is reasonable

Nathan Thomas with State Farm

I think it depends on your financial situation. I don't need to sue anyone for pain and suffering regardless of what happens. Most uninsured motorist claims are for medical bills, which, to me, is redundant with my medical insurance.