The average cost of car insurance in Florida is $2,208 per year, which makes it the fourth highest compared to other states. Alabama and Georgia, which share a border with Florida, have lower rates: Georgia drivers pay $1,638 on average, while Alabama policies cost $1,221 a year.
There are several factors that contribute to car insurance rates being so high in Florida. These include environmental factors, such as traffic density and weather hazards, and the profile of drivers.
If you live in this state and need to knowhow much does car insurance cost in florida?, you have to be proactive in comparing car insurance quotes because Florida car insurance rates are so expensive.
Why are Florida car insurance rates so high?
If you’ve noticed that you’re spending more on coverage in recent years, you’re not alone. The average cost of auto insurance has increased across the country, and auto insurance rates in Florida are following the same pattern. Significant factors contributing to this change are the state’s busy roadways, additional insurance requirements, high health care costs, high-risk drivers, uninsured drivers, and severe weather hazards.
Traffic and busy roads
Research has shown that around 79.8 million people visited Florida in 2020. With world-class ports, beaches, and amusement parks, it’s no wonder Florida is the third busiest state in the country.
These visitors result in roads with higher traffic density, which increases auto insurance rates in Florida. From a carrier’s perspective, the closer people drive to other vehicles, the greater the likelihood of accidents.
Additional Insurance Requirements
Like most states, auto insurance is required in Florida. To drive in the state, you must carry a policy that meets the state’s minimum liability requirements: property damage limits of at least $10,000 and personal injury protection (PIP) coverage of $10,000. PIP is an additional requirement because Florida is a no-fault state. This insurance covers your expenses in an accident, regardless of who is at fault.
Expensive health care costs
When you are involved in an accident, insurance providers use the premiums paid by consumers to help pay their expenses. Covered costs include medical expenses for injuries sustained by drivers and their passengers or, in tort states, necessary treatment for the other party.
The United States spends approximately $3 trillion on health care per year. While health care costs in the country are high across the board, Floridians pay more than average. According to the Commonwealth Fund, the state is one of five in the United States where the average resident spends 14% or more of their income on health care. Insurance companies charge higher premiums to cover the high cost of medical expenses in the state.
high risk drivers
If you are charged with a DUI, multiple at-fault accidents, or other serious driving violation, you will be required to purchase an SR-22 in many states. The rates for these policies are significantly higher than the average policy. However, Florida extends additional penalties to drivers with a DUI. Instead of an SR-22, these drivers must file an FR-44, which requires them to purchase coverage with 100/300/50 limits, plus $10,000 in PIP coverage.
The high fees associated with this additional filing may contribute to why Florida auto insurance rates are so expensive. On average, a driver with a clean record pays $1,379 annually for car insurance. By comparison, a high-risk driver pays $861 more each year.
uninsured drivers
Although drivers in Florida are legally required to have insurance, 20% do not have coverage, much higher than the national uninsured driver rate of 12%. Florida ranks sixth of the states with the highest rate of uninsured drivers, which means that the chance of being involved in an accident with someone who does not have insurance is greater than in other states.
Although not part of the state’s minimum insurance requirements, it is recommended that you purchase uninsured motorist insurance. This coverage pays for your damages if you are in an accident with an uninsured driver. Because this coverage must be purchased at an additional cost, it increases the state’s total insurance costs.
THE UNINSURED MOTORIST RATE IN EACH STATE
| Condition | Uninsured driver fee |
| Alaska | 16% |
| Alabama | 20% |
| Arkansas | 19% |
| Arizona | 12% |
| California | 17% |
| Colorado | 16% |
| Connecticut | 6% |
| D.C. | 19% |
Severe weather hazards
Extreme weather conditions are common causes for auto insurance claims, particularly for drivers whose policies include comprehensive insurance. Various weather hazards commonly experienced in Florida, including tornadoes and hurricanes, can damage your car to the extent that your insurance company might declare it a total loss. In these cases, providers have to pay large claims. The frequency of these occurrences is a big part of why Florida auto insurance is so expensive.
average age of drivers
Age is one of the key factors providers use to determine car insurance rates. On average, young students and seniors pay more than the average driver for coverage. Florida’s relatively large population of people in both age groups contributes to the high overall costs of insurance in the state. According to census datathe collective population of people ages 18 to 24 and older in Florida is 17.7%, or 1.5% higher than the national average.
Auto Insurance Rate Increases in Florida
Currently, the average driver in Florida pays approximately $2,208 per year or $184 per month for full coverage auto insurance. Over the past six years, auto insurance rates in Florida have risen steadily: According to MoneyGeek rankings, it went from being the 43rd most affordable state for coverage to 46th. On average, rates in the state have increased by $379 since 2015.
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