Why is car Insurance in Florida Expensive? The high price of Florida vehicle insurance is due to a variety of variables, including the substantial amount of uninsured motorists and high-risk drivers who live in and visit the state. It’s important to understand these characteristics so you can take action to reduce your overall insurance expenses, including the annual or monthly rates you must pay. Knowing these characteristics can benefit you when chatting with your insurance agent about attainable savings.
Here are some elements that influence Florida’s vehicle insurance pricing, as well as techniques to save money on your auto insurance rates and choose the insurers that give the lowest average rates.
Factors Influencing Florida Car Insurance Prices
Insurance providers will take into account numerous aspects while deciding about car insurance premiums. Some elements are unique to the driver or their car, while others are inherent in residing in Florida. According to Autolist, Florida is the second-most expensive state in the country for vehicle insurance, with an annual average of $2219, a 52 percent premium above the national average of $1457. Here are a few factors that influence Florida auto insurance premiums:
Bad Weather
Florida is renownedly called the Sunshine State, but it is also known for its unpredictable weather, which includes severe storms and hurricanes. This hazardous weather has the potential to cause significant property damage. Storms can do significant damage to Florida drivers. As Hurricane Dorian threatened the state’s shores, a guy put his smart car in his kitchen, according to a Car and Driver report.
Flood along the coastline is additionally a result of bad weather. Water surrounds Florida on three sides because it is a peninsula. Flooding may cause damage to property near the coast or in low-lying terrains, therefore owners may expect higher insurance costs.
Busy Roadways
The website WalletHub, Florida is the third-busiest state behind California and New York, resulting in congested highways. The more congested the roads, the more probable an accident may occur, raising insurance rates.
Uninsured Drivers
According to Insurance Panda, the state of Florida mandates motorists to have at least $10,000 in property damage liability insurance and $10,000 in property injury protection. However, Florida has the largest percentage of uninsured drivers in the US, at 26.7 percent. This number is one of the primary causes of rising insurance rates in Florida since 2009.
High-Risk Drivers
The large number of high-risk drivers also contributes to growing insurance premiums in Florida. High-risk drivers include the elderly, tourists visiting the state, and students pursuing higher education at one of Florida’s many schools and institutions. Florida receives 128 million tourists each year, according to WalletHub.
Minimum Car Insurance Requirements in Florida
Drivers in Florida are required to carry $10,000 in Personal Injury Protection (PIP), also known as State no-fault insurance, as well as $10,000 in property damage liability per accident. According to Nerd Wallet, PIP insurance also covers medical bills, missed income, necessary medical equipment, and other accident-related expenses such as in-home treatment. This insurance does not cover car property damage. Instead, either your collision policy or the responsibility coverage of the at-fault driver will cover the expense.
In addition, the Florida Financial Responsibility Law mandates you to pay up to $10,000 in bodily injury liability per person and $20,000 in accident liability. Bodily injury liability insurance protects you against serious injury to a third party as a result of an accident you caused. Uninsured motorist, collision, and comprehensive coverage are all available.
How to Get the Cheapest Car Insurance in Florida
Despite the high insurance costs in Florida, there are strategies to save money on auto insurance. Keep these in mind when looking for vehicle insurance so that you may take advantage of the discounts that various companies provide. Anti-theft devices on a vehicle, having numerous cars on your policy, taking a safe driving course, and establishing yourself as an excellent driver with no criminal convictions are all standard discounts.
According to Autolist, you may also see a reduction in your insurance costs if you are a senior citizen, an active member of the military, a veteran, or an excellent student as evaluated by the insurance company. A strong credit score will also impact your insurance prices. According to the website Nerd Wallet, credit scores can carry more weight than some driving record blemishes, such as a DUI or at-fault crash. Nerd Wallet averaged rates for 40-year-olds who obtained a good driver discount due to their clean driving record but had bad credit for their research.
The Cheapest Car Insurance Rates in Florida
Although insurance rates vary depending on your region, car attributes, and other criteria, certain insurance firms in Florida stand out as providing lower rates. According to Insurance Panda, the lowest rates in the state are offered by State Farm, Travelers, GEICO, USAA, and Florida Farm Bureau, according to a 2019 Value Penguin analysis. State Farm and GEICO provide prices that are 44% lower than the national average for full coverage insurance, which comprises complete and collision coverage, as well as minimal coverage, which only covers liability coverage.
According to Car and Driver, Michigan has the highest insurance premiums in the US, with an average annual cost of roughly $2611. Florida isn’t far behind, but there are ways to reduce your insurance premiums to a level you’re comfortable with. Inquire with your insurance agent about any reductions you may be eligible for, and take advantage of any savings you may apply to your rates.