Many people move from other states to Sarasota, Lakewood Ranch, Bradenton, Parrish, and the surrounding area for the allure of the sunshine and the beach. Almost equally as many people find themselves asking, “Why car insurance is so expensive in Florida?”
Check out our Complete Guide to Florida Auto Insurance.
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Car Insurance is so expensive in Florida Compared to Other States?
According to Insure.com, Florida has the highest cost of liability insurance in the country. In fact, it’s not even close. Only two states have an average liability premium over more than $800. Florida is the only state to have an average cost in excess of $900 annually. To make things worse, Florida is creeping up on $1,000 per year in 2024.
- Florida: $993
- New Jersey: $853
- Delaware: $788
- New York: $731
- Maryland: $727
As my friend Steve says, “you have to pay for the sunshine.”
On average, Florida auto insurance is 36.6% more expensive than the fifth-most expensive state in the country.
Mississippi ranks 25th in annual cost of auto liability insurance in the country. The average cost of auto liability insurance in Florida is 114.5% more than it is in Mississippi.
This is why it is important to have a Florida auto insurance agent who knows what they are doing…(fake cough) Carter Family Insurance!
Top 6 Reasons: Why Car Insurance is so Expensive in Florida
Several factors contribute to the high cost of car insurance in Florida. It’s essential to consider these factors to understand why insurance premiums may be higher in the sunshine state:
6. Florida has 63.2% more uninsured drivers than the national average
12.5% of all drivers in the nation are uninsured. Over 20% of all drivers in Florida do not have insurance. Over one out of five Florida drivers have no auto insurance. That means you could be stuck with the bill even if it’s someone else’s fault.
Florida car insurance policies offer uninsured motorist protection but the high rate of uninsured drivers is one factor in the expensive price of car insurance in Florida. Check with us to see what sort of protection your policy provides and if it fits your needs.
Why car insurance is so expensive in Florida? Point a finger at 1 out of 5 drivers in Florida because they are uninsured. Also point a finger at Florida’s insurance regulations.
There are many other factors that have led to such high insurance premiums in Florida, but a high percentage of uninsured motorists is most definitely a contributing factor. The irony of it all is that the high cost of insurance is also a factor that leads to the high rate of uninsured motorists. Round and round we go.
5. Hurricanes damage vehicles too!
This one does not take a lot of research or statistics to explain. If you’ve ever watched the national news or the weather channel, then you get used to seeing Florida in the path of the howling winds of a hurricane.
The year-round sunshine puts residents and their properties at risk of thunderstorms at all times. Add that to the fact that hurricanes can cause catastrophic damages and it is easy to see why Florida insurance is so expensive.
There have been years with so much hurricane damage that major insurance companies shut down their operations in Florida. Granted, those circumstances also include the impact of the substantial amount of fraudulent roof claims and the insane amount of frivolous lawsuits. Regardless, all of the storm damage in Florida has contributed to the highest cost of home insurance in the country. Vehicles get damaged along with the houses.
Why car insurance is so expensive in Florida? Point one finger at hurricanes.
4. Insurance companies pay the price for Florida’s high cost of litigation
“For decades, Florida has been considered a judicial hellhole due to excessive litigation and a legal system that benefitted the lawyers more than people who are injured,” said Governor Ron DeSantis.
We won’t get into all the ins and outs of why Florida has such high litigation costs here. That is a topic that could get its own post. Florida has had laws in place that have allowed for scammer contractors and dirty, filthy, crooked, scammer attorneys to take advantage of and profit from our system.
In the end, the increased costs have put several smaller insurance companies completely out of business and forced national companies out of the state. The companies that have remained have had no choice but to increase costs on insurance policies.
So, if someone asks you why car insurance is so expensive in Florida, you can always point at the attorneys as one reason. That’s not the whole answer but it’s always nice to blame the lawyers for things.
3. Florida has a high population density, making for crowded and risky roadways
Florida has a high population density. Crowded urban areas like Tampa, Orlando, and Miami mean there are more cars on the streets in small spaces. We are located in the Sarasota-Manatee area and the congestion is terrible from the small city streets to I-75, which sometimes looks like a parking lot.
You live in a vacation destination!
Not only is Florida a destination for permanent relocation, it is a vacation destination, as well. Then, after visitors return to their dreary homes in colder more depressing climates, they quit their jobs and move to Florida to try and recapture the fleeting joy they felt vacation.
Once they move here they experience the pain of Florida auto insurance premiums. Then, they begin to question whether it was Florida that made them happy, or was it the fact that they took a week off of work. Maybe they couldn’t have not gone anywhere and had just as good of a time. Nevertheless, they are now here and they can’t afford to take a vacation from work because they have three jobs just to try and pay their insurance!
Too many vehicles on the road leads to more fender benders and car accidents. High density populated areas also tend to have more vandalism and thefts! All of these factors contribute to more insurance claims and higher premiums.
Why car insurance is so expensive in Florida? Well, if you moved here cause you like palm trees, sitting in traffic, and the threat of dying from a heatstroke at any given moment, then you can also look in the mirror for the answer to that question. By adding to the crowded roadways, you are one of the reasons car insurance is so expensive in Florida.
If you live in Sarasota, Bradenton, Tampa, St. Petersburg, or any other city in Florida that feels like it might be too crowded, you need to get in touch with Carter Family Insurance for Florida car insurance quote!
It gives you even more reason to hate the traffic. Not only are you wasting gas and time of out of your day, but it’s a part of the reason your insurance rates are so high!
2. Car repairs are expensive in Florida due to the high demand
Due to many of the reasons stated above, there is a high demand for car repairs in Florida. High population counts put a strain on the repair shops and put demand through the roof. Add in the frequency of storm damage and the overall high living expenses and the end result… stinks. Insurance companies are footing the bill for most of these expensive repairs. Thus, our insurance premiums are high. This list is making me sad.
1. Florida is a no-fault insurance state
Florida has what we call no-fault insurance policies. Where I’m from (Indiana) that doesn’t make any sense. If it’s your fault, it’s your fault. That sort of common sense thinking is probably why Indiana has much better auto insurance rates than Florida.
No-fault insurance is worthy of its own post. However, here is a brief rundown. If you are in an accident that is someone else’s fault, your policy still has to cover your medical expenses and a portion of your lost wages up to $10,000. This is covered under the personal injury protection portion of your policy, also known as PIP.
Even though the accident is someone else’s fault, your policy handles the first $10k in bodily injury coverage. Property damage claims are handled outside of the no-fault program. If somebody hits your car and you have no injuries, their policy pays for the damage.
Why Car Insurance is so Expensive in Florida and What You Can do About it
We hope this post helped you understand a little more about why car insurance is so expensive in Florida. Now, what can you do about it?
Move.
If that’s not an option, you can always get a quote with a good independent agent…(coughs) Carter Family Insurance.
Get a quote with Carter Family Insurance to work with an agent who can walk you through your coverage and find you the best possible value. Rates are always changing as insurance companies try to decide if they want to keep trying to get business in Florida and flee in sheer panic.
We’ll run you new quotes with multiple companies (advantage of being an independent agent) when your rates take a turn for the worst.
Carter Family Insurance can your solution to the problem: Why car insurance is so expensive in Florida.
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