Escalating Cost of Auto Insurance
February 23, 2023
Car insurance costs are on the rise in 2023. According to the personal financal website ValuePenguin, insurance rates across the US are expected to rise by 8.4%.
Among the reasons suggested for car insurance rate hikes include the post-pandemic increase in commuter traffic, the rise in both new and used car prices, and the more expensive cost of repairs.
Naturally, the more distance you drive every day and the type of traffic situations you are exposed to also can influence the cost of your Florida auto insurance premiums.
Sunshine State is one of the most expensive...
For drivers in the Sunshine State, Florida auto insurance is among the most expensive in the nation. This is due in part to Florida being a no-fault state that requires registered drivers to carry minimum amounts of personal insurance protection.
Increases in auto insurance rates most often correlate to different industry trends. Not only has the price of a new or used vehicle recently gone up, the medical costs for treating those injured in a car accident are also on the rise. But even with inflation starting to ease, drivers shouldn’t expect to see a break on this year’s insurance premiums.
Average Cost of Florida Auto Insurance
According to Bankrate.com, the true cost of auto insurance is calculated as the percentage of average household income spent each year on full coverage car insurance as an average by state and nationally. For example, the average cost projected for the Sunshine State in 2023 for full coverage auto insurance is $3,183, which is $1,169 more than the national average.
The projected annual increase in cost ranks Florida as 49th of the 50 states examined and suggests a higher percentage of household income will be needed for a full coverage insurance policy. On average, drivers nationwide will spend nearly 3% of their annual income insuring their cars but drivers in Florida will spend a projected 4.9% of their household income on auto insurance premiums.
As a state-regulated industry, auto insurance prices are basically non-negotiable and you cannot simply ask your insurance carrier to lower your rates. That is why it is important for you to compare quotes from multiple insurance companies and work with an independent agency that can help determine your specific needs for financial protection in case you are involved in an accident.
Increases in Florida Auto Insurance Rates
Since industry experts estimate that Florida auto insurance coverage will likely increase by approximately $421 in 2023, let’s take a closer look at the things identified in ValuePenguin’s report related to the reasons for policy increases in the Sunshine State:
1) Received a Speeding Ticket – Equates to average annual premium increase of $586
2) At-Fault for an Accident – Equates to average annual premium increase of $1,212
3) Convicted of a DUI – Equates to average annual premium increase of $1,992
4) Added a Teenage Driver – Equates to average annual premium increase of $3,555
5) Lapse in Insurance Coverage – Equates to average annual premium increase of $508
6) Credit Score Decreased – Equates to average annual premium increase of $3,195
While data from the Florida Department of Highway Safety and Motor Vehicles (FLHSMV) shows that the Sunshine State did show slightly fewer car accidents in 2022, Florida drivers were still involved in 389,453 total crashes with a total of 248,025 injuries.
Even with Florida’s higher than average premiums, Nsurance Nation can lower your rates for Florida car insurance. Our agents will work closely with you to find the right coverage and with the most affordable premiums based on your unique needs. Use this website’s Click Here for Quotes option or call us direct at 1-833-450-9490.
