Credit: Alex Skopje - Shutterstock

Sharply higher claims payouts are driving up Florida homeowner and auto insurance premiums, even though the state hasn't been hit by a hurricane in more than five years, a new industry study shows.

In the nearly six years since Hurricane Wilma raked Florida, “everyday claims,” along with reopened and new claims from past storms, have risen 80 percent.

"Insurers are asking for rate increases based not only on projections of future claims costs for catastrophic natural disasters, but on claims already paid out,” said Lynne McChristian, Florida representative for the Insurance Information Institute.

This month, two affiliates of Allstate Insurance Co. requested rate hikes averaging more than 30 percent

Castle Key Insurance Co. and Castle Key Indemnity Co. said rates for some individual customers could rise up to 68 percent.

Industry officials say one of the biggest cost drivers was a 2005 legislative change requiring insurers to pay full replacement cost for home repair upfront.

Florida has been the only state with such a provision.

In other states, insurers first pay homeowners who have purchased a replacement cost policy of an amount equal to actual cash value, and pay the remainder as repair work is completed or after a damaged item is replaced.

Tying payouts to actual receipts is a proven measure for keeping costs down, the Institute representative said.

Under legislation enacted this year, Florida law will authorize paying actual cash value for structural repairs as all other states do, although full replacement costs must be paid upfront for the contents of a home.

Another factor boosting payouts was a provision that allowed property owners five years to file a claim for hurricane damage. Other states typically have a one-year deadline, though states have sometimes extended that on an annual basis following major storms. Legislation passed this year limits Florida's claim period to three years.

According to research data, noncatastrophe claims averaged about $450 per policy through the end of 2010, compared to $250 per policy in 2007.

The Insurance Information Institute found that claims costs are increasing at 17 percent per year, making today’s projected costs about $500 per policy for “everyday” claims, which are those not associated with natural disasters.

The reported increases include costs for sinkhole claims. This week, Citizens Property Insurance board voted to raise sinkhole premiums by a whopping 430 percent.

In 2010, the state-backed insurer took in $32 million in sinkhole premiums, but paid out $245 million in claims.

On autos, insurers report they are paying out more for each claim while the volume of claims is increasing.

The average cost per claim increased by nearly 40 percent in less than three years. In early 2008, the average claim for an auto accident was $5,808. By the third quarter of 2010, the average cost was $8,096 per claim.

Florida is one of 12 states with a no-fault law that allows drivers to file a claim for injuries related to a car crash regardless of fault. Also known as Personal Injury Protection, this coverage provides up to $10,000 for medically necessary expenses.

But insurance industry analysts say that the $10,000 figure has become a “dollar target” for dishonest medical providers and attorneys to manipulate at the expense of all insured drivers.

The Florida Division of Insurance Fraud is currently investigating and prosecuting several such cases.

It's estimated that Florida drivers paid a “fraud tax” of about $49 per vehicle in 2010, which is expected to climb to nearly $84 per vehicle this year.

In an ironic double-whammy for consumers, Gov. Rick Scott earlier this year pulled the plug on a state website that let homeowners compare coverage options and prices.