Why is Florida auto insurance so expensive?
Factors such as high-risk drivers and no-fault insurance laws explain why Florida auto insurance is so expensive. Florida auto insurance rates average $174 a month, but high-risk drivers living in cities see the most expensive Florida insurance rates. Learn how to find cheap Florida car insurance below.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
UPDATED: Sep 5, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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If you’re a new Florida driver, the average cost of car insurance may catch you off guard. Florida is the third most expensive state for car insurance; the average annual car insurance premium is $2,082.
You may wonder, why is Florida auto insurance so expensive. Factors including dense traffic, policy requirements, and high-risk drivers contribute to high car insurance rates. These together increase the risk of getting into a car accident with an uninsured driver.
However, there are ways you can lower your risk and your car insurance cost. Read this guide for more on what makes Florida car insurance so expensive and how you can save money. Before you start, compare Florida auto insurance quotes for free when you enter your ZIP code above.
- The average annual car insurance premium in Florida is $2,082, or $173.50 a month
- Florida is third most populous state in the country
- One factor that contributes to Florida car insurance is the large number of high-risk drivers
The Reasons Why Florida Auto Insurance is so Expensive
There are a lot of factors that affect the overall cost of Florida auto insurance. Like most states, the average is affected by the big cities, where heavy traffic tends to mean higher rates.
More rural parts of Florida likely have lower rates than the average. That said, Florida does have some of the most expensive insurance rates in the nation. Let’s break down the reasons why that is so, including Florida auto insurance laws.
Read More: Auto Insurance Companies Pulling Out of Florida
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The Role of Traffic Density in Florida Auto Insurance Rates
Heavy traffic puts you behind schedule and increases your risk of getting into a car accident. To understand how dense and crowded Florida’s highways can be, here are some quick facts about the Sunshine State:
- While Florida is only the 22nd largest state in the country, it is the third most populous state, with over 21 million residents.
- In 2020, 79.8 million people visited Florida. The prior year before the pandemic, 131.4 million non-residents visited friends, family, or one of the state’s many attractions.
With so many people living in and visiting Florida, it’s clear that the roads can get busy. And the more vehicles on the road, the greater each driver’s risk for an accident.
Insurance companies take a driver’s risk profile into account. This is one of the reasons why Florida drivers can expect a higher car insurance rate than their friends in neighboring states.
High-Risk Drivers Drive Increase Florida Auto Insurance Rates
Another factor contributing to high Florida car insurance rates is the increased number of high-risk drivers. The chance of a collision in heavy traffic is even higher when a high-risk driver is on the road—and if there are several, the odds go up and up.
Florida’s car insurance rates are some of the highest in the country, and a bad driving record increases rates even more.
This table shows average auto insurance rates in Florida.
Florida Auto Insurance: Impact of Driving Incidents on Rates
| Driving Incident | Average Monthly Rate |
|---|---|
| Clean record | $153 |
| Speeding ticket | $235 |
| Accident | $277 |
| DUI | $218 |
One accident can raise Florida auto insurance rates by around $124 a month. Multiple infractions mean insurance companies may see you as a high-risk driver.
Who is considered a high-risk driver? Generally, one or more of the following apply:
- Recently received a driver’s license
- Charged with multiple speeding tickets
- Deemed at fault in at least one car accident
- Convicted of a DUI
- Filed several car insurance claims
While most of these factors are related to a person’s actual driving record, people with poor credit history may also be deemed riskier insurance prospects.
How to Find Insurance Coverage as a High-Risk Driver in Florida
If you’re a high-risk driver, you might pay even more for Florida auto insurance.
Car insurance is mandatory for drivers across the U.S., including Florida. Want to lower your risk so you can receive a better rate? Here are some steps you can take:
- Improve your credit score
- Take extra precautions on the road to avoid accidents
- Enroll in a driving course
- Buy a car with safety features
- Never drink and drive
If you don’t have a driving record or recently got your license, insurance companies want to see proof that you’re a safe, reliable driver. Taking driving courses can be enough evidence for your provider to lower your rates.
No-Fault Insurance in Florida Means Higher Rates
Most states in the U. S. require that you have liability insurance. This policy will cover the other driver’s expenses if you’re found to be at fault in an accident.
However, Florida is a no-fault state. As a result, according to Florida insurance requirements, all drivers need Personal Injury Protection insurance to cover their own costs after an accident.
PIP insurance can pay for your medical bills, car repairs, and other accident-related expenses regardless of who has caused the accident.
Because of that additional requirement, your car insurance cost can go up by as little as $50 or as much as a few hundred. The price will depend on your car, driving history, and other factors. Regardless, this PIP insurance requirement is another reason why Florida car insurance is more expensive than other states.
No-Fault States Outside of Florida
Curious to know other states where PIP coverage is required? No-fault states include the following:
- Delaware
- Florida
- Hawaii
- Kansas
- Kentucky
- Marland
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Oregon
- Utah
Since laws change frequently, it’s always best to check in with your state’s laws to verify their insurance requirements.
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How to Save on Auto Insurance in Florida
Even though car insurance is required to drive in Florida legally, you still have some options to help lower the cost of your car insurance.
- Use any discounts that your insurance company offers, such as bundling policies
- Keep your driving record clean
- Raise your deductible to help lower your auto insurance premium
- Shop around and compare different insurance rates
A number of factors go into Florida’s expensive insurance rates. Get the best, most affordable deal possible with a little help.
Read More: Cheapest Teen Driver Auto Insurance in Florida
Why Florida Auto Insurance Is So Expensive: The Bottom Line
No-fault laws, packed roads, and high-risk drivers all contribute to Florida’s high cost of car insurance. But, although it’s expensive, car insurance offers peace of mind and financial protection when you’re driving down Florida’s busy highways.
But that doesn’t mean it should cost you an arm and a leg.
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Instead, shop around and compare auto the best insurance rates in Florida to find a deal that offers great insurance coverage at an affordable price.
Learn More: Best Pay-As-You-Go Auto Insurance in Florida
Our free, easy-to-use car insurance comparison tool provides car insurance quotes online. All you have to do is enter your ZIP code to get started. Then, you can shop and compare Florida car insurance quotes from top car insurance company providers.
Frequently Asked Questions
Why is auto insurance in Florida more expensive compared to other states?
Several factors contribute to the higher cost of auto insurance in Florida:
- High population density: Florida has a large population, particularly in urban areas, which increases the risk of accidents and claims.
- High rate of uninsured drivers: Florida has a relatively high percentage of uninsured drivers, which can drive up insurance costs for those who have coverage.
- Severe weather conditions: Florida is prone to hurricanes and tropical storms, leading to a higher risk of vehicle damage and claims.
- No-fault insurance system: Florida follows a no-fault insurance system, which requires drivers to carry personal injury protection (PIP) coverage. This system can result in higher insurance premiums.
- Fraudulent claims: Florida has experienced a history of fraudulent insurance claims, particularly related to staged accidents and medical fraud. These fraudulent activities can increase insurance costs for everyone.
- Expensive medical costs: Florida has higher medical costs compared to some other states, and since PIP coverage includes medical expenses, it can contribute to higher premiums.
Are there any specific regions in Florida where auto insurance rates are higher?
Generally, auto insurance rates can vary based on location within Florida. Urban areas such as Miami, Tampa, and Orlando often have higher rates due to higher population densities, higher accident rates, and increased instances of theft and vandalism. However, insurance rates can also be influenced by individual factors such as driving history, age, and the type of vehicle insured.
Can I do anything to lower my auto insurance rates in Florida?
While some factors affecting insurance rates are beyond your control, there are steps you can take to potentially lower your auto insurance premiums in Florida:
- Shop around and compare rates from different insurance companies to find the best deal.
- Maintain a clean driving record and avoid accidents and traffic violations.
- Consider increasing your deductibles, which may lower your premium.
- Bundle your auto insurance with other policies, such as homeowners or renters insurance, for possible multi-policy discounts.
- Inquire about available discounts, such as good driver discounts, safe driver courses, or installing anti-theft devices in your vehicle.
- Review your coverage limits to ensure they align with your needs. However, be cautious not to reduce coverage to inadequate levels that may leave you underinsured.
Should I opt for minimum coverage to save money on my Florida auto insurance?
Opting for minimum coverage may help reduce your premium in the short term, but it could leave you financially vulnerable in case of accidents or extensive damage. Minimum coverage may not adequately protect your assets or cover medical expenses, which can be substantial. It is recommended to assess your insurance needs carefully and consider purchasing sufficient coverage to protect yourself and your assets.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Chris Abrams
Licensed Insurance Agent
Chris is the founder of Abrams Insurance Solutions and Marcan Insurance, which provide personal financial analysis and planning services for families and small businesses across the U.S. His companies represent nearly 100 of the top-rated insurance companies. Chris has been a licensed insurance agent since 2009 and has active insurance licenses in all 50 U.S. states and D.C. Chris works tireles...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.