CHEAPEST FLORIDA CAR INSURANCE RANKINGS

2022

Why is Florida car insurance so expensive? 5 reasons you must know

Despite the many attractions Florida has to offer, many state residents ask themselves, why is Florida car insurance so expensive? 

As a Florida driver it is important to understand the factors that are driving up auto insurance rates. This allows you to make an informed decision when choosing which car insurance agency will best serve you. Quant Insites has not only ranked the most affordable car insurance companies in your county, but has provided a comprehensive look at why Florida car insurance rates are so expensive. We aim to guide you in your search for cheap car insurance coverage in Florida. 

Is car insurance expensive in Florida?

Yes. On average, Florida is one of the more expensive states especially when it comes to auto insurance. It is ranked as the top state with high rates for car insurance coverage in 2022, a significant bump from third in 2021. According to The Zebra, as of 2022 the average cost of car insurance in Florida is more than 31.6% than the national average, $1,878 per year. Florida car insurance prices have only been going up. Why is Florida car insurance so high? Quant Insites has researched the main causes to help Floridians find lower rates on car insurance quotes.

5 reason why car insurance is so expensive in Florida

Why is Florida auto insurance so expensive? We have listed the five major reasons that are contributing to higher auto insurance premiums in the sunshine state: demographics/population, tourists, number of uninsured drivers, severe weather, and Florida legislation. 

1. Demographics/Population 

   Florida has one of the largest populations in the country. It is listed as third in population following California and New York, respectively (United States Census Bureau). This contributes to higher density on the roads increasing traffic congestion. With the increase of drivers comes higher chances of car accidents. Along with having one the largest populations, Florida also has unique demographics that are influencing auto insurance rates. Florida has a higher than average population of senior citizens and students. According to Florida Highway Safety and Motor Vehicles, 11 % of all Florida car accidents in 2021 involved teen drivers. Additionally, around 20% percent of Florida’s population were made up of senior citizens in 2019 and is only increasing as reported by  Fetterman & Associates. These population groups tend to pay higher premiums.

2. Tourists

   On top of Florida having one of the highest populations nationwide, Florida attracts a larger number of tourists especially in Miami. According to WUSF Public Media, 36 million tourists visited the sunshine state in the first few months of 2022. This fact increases the likelihood of car accidents. Tourists are unfamiliar with state traffic laws, lack familiarity of roads and traffic patterns, and tend to be more distracted while driving. These unfamiliarities and distractions in a motorist does not make a safe driver. Insurance agents are aware of these facts and base their coverage rates on such statistics.

3. Unisured Drivers

   Another crucial factor to consider is the number of uninsured motorists in the state. A substantial percentage of drivers in Florida do not have insurance. According to Value Penguin, Florida has the highest number of uninsured drivers, roughly 26.7%. These are considered high-risk drivers and put insurance companies at a higher risk of losing money. Since the state’s minimum coverage does not include uninsured motorist insurance, this expense comes at an additional cost and is highly encouraged. This increases Florida’s overall insurance rates. 

4. Severe Weather

   Florida is known for its warm weather and sunny attractions, but seasonally experiences extreme weather conditions. The sunshine state often is hit with severe tropical storms and hurricanes. Such weather conditions influence high rates for motorist coverage. Additionally, Florida is constantly at a high risk of flooding.  The National Flood Insurance Program requires the most flood insurance policies in Florida (Florida Flood Insurance) for homeowners, businesses, and renters alike. These climate hazards increase the chances of car accidents and/or damage to vehicles.  Such damages require insurance companies to pay large claims. Given that Florida experiences storms and severe weather conditions frequently, insurance companies increase their coverage rates. 

5. Legislation

   In Florida, the minimum auto insurance requirements in coverage limits include $10,000 in property damage liability coverage and $10,000 in personal injury protection (PIP). The PIP requirement makes Florida a no-fault state. No fault insurance covers expenses incurred by a car accident regardless of which driver is at fault. For those Floridians looking for more comprehensive coverage/full coverage, auto insurance rates are even higher. Adding more financial costs to insurance providers, residents in Florida have higher medical expenses. As a result, medical bills highly influence the average cost of auto insurance in Florida. According to the Tampa Bay Times, Florida citizens spend on average 14.5% of their income on health insurance. Higher healthcare costs and no-fault state legislation increases auto insurance rates.

Is Florida car insurance expensive for your budget? We can help you!

If you have come to this site, Cheapest Car Insurance in Florida, you are probably looking to find the most affordable coverage car insurance in the state. Quant Insites has ranked auto insurance agencies throughout the state providing the cheapest coverage. We have extensively reviewed and researched auto insurance agencies in Florida and have highlighted top companies in the largest counties. We aim to provide you with insight and guidance as you search for the right, affordable auto insurance company to keep you protected at the right price. 

Key Takeaways about why Florida car insurance is so expensive

Why is auto insurance so expensive in Florida? As you move forward in finding the right car insurance agency to work with and considering different coverage options, it is important to keep in mind the main factors that are contributing to high insurance rates in the sunshine state: demographics/population, tourists, uninsured drivers, severe weather, and legislation. Of course a motorist’s driving history, credit score, and credit history contribute to even higher rates, especially if a driver has a DUI on their record, poor credit, and/or speeding tickets. However, a good driver in Florida with a clean driving record and good credit still has to pay higher than average car insurance premiums than drivers in other states. Understanding these reasons will help you navigate the car insurance field in Florida and make you a smarter consumer when shopping for the best rates. 

Have more questions? Read our FAQs section below to gain more information on Florida auto insurance. 

 FAQs