Why Is Florida Auto Insurance So Expensive?
September 8, 2022
Whether you’ve relocated to the Sunshine State or just noticed what you’ve been paying for auto insurance coverage, there are several reasons as to why auto insurance rates vary from one state to another.
If you recently moved from a neighboring state, your rates maybe 50% to 100% higher than what you were paying.
With an average annual cost of $2762, Floridians spend 4.42% of their average annual income on car insurance. A recent study published in Bankrate.com compared that to the national average of 2.57% or approximately $1771 per year. Louisiana was the only state to spend a higher portion of annual income at 5.26%.
Factors Affecting Car Insurance Costs
Even though your personal details may have remained the same, there are very unique reasons as to why the cost of your Florida auto insurance coverage can continue to go up each year:
No-Fault Insurance – It is estimated the Florida statutes that require the purchase of Personal Injury Protection causes an increase of about 20% in auto rates. But, PIP insurance does provide for medical bills for you (and others) involved in different types of collisions.
Busy Florida Roadways – The traffic on Florida roadways ranks third in the nation behind California and New York. The more drivers on the road, the closer your car is to other vehicles, and the higher your risk of being involved in an accident.
More High-Risk Drivers – Due to certain demographics like a higher number of tourists, senior citizens and out-of-town students driving on Florida’s roads, insurance companies consider motorists in the Sunshine State to be at a higher risk.
Severe Weather Conditions – People often live in Florida for the weather; but it is the weather that could potentially cause significant damage to your vehicle. Living by the ocean, river, or in low-lying areas is considered the most vulnerable for vehicle property damage.
High Healthcare Costs – Generally speaking, patients in Florida pay more for healthcare than people in most other states. That means the expenses a carrier payouts due to an auto accident will be higher regardless of who was at fault.
Average Age of Florida Drivers – Florida has one of the largest populations of young and older drivers. Both age groups typically have to pay more for car insurance, which contributes to higher than average insurance premiums.
Too Many Uninsured Motorists – Because auto insurance is expensive in the Sunshine State, Florida ranks high in uninsured and underinsured drivers on the state's roadways. So, it is more likely you could be in a crash with an uninsured or underinsured driver.
Purchasing a minimal amount of auto insurance is required to own or operate a vehicle in Florida. You need $10,000 of both Personal Injury Protection and Property Damage Liability coverage. But, regardless of who's at fault, PIP covers about 80% of medical bills and PDL pays for damage to another’s property if you are at fault.
Nsuarance Nation Can Save You Money on Car Insurance
Since you live, work or go to school in Florida, it is important to understand the contributing factors that insurance companies use to determine your rate. Here at Nsurance Nation, our agents can help you get the best possible price on the minimum or extended coverage you need.
The higher average cost of auto insurance does not mean there aren’t good opportunities to save on your Florida car insurance policy, even for those with a less than perfect driving record.
If you have an at-fault accident, ticket, or DUI conviction on your Florida motor vehicle record, your insurance premiums may have gone up. Since an insurance carrier’s rates are based on risk, a negative driving history means you can expect to pay more based on the number of incidents against your driver’s license.
If you get caught in Florida and cannot show proof of insurance, you will have to pay a reinstatement fee and could have your license suspended. Even worse, if you are involved in an accident, you may held responsible for damages and also will have to complete a SR-22 certificate that could cause you to pay much higher rates in the future.
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 with the most affordable premiums. Use this website’s Click Here for Quotes option or call us direct at 1-833-450-9490.
