Florida car insurance is so expensive because of the high number of factors that increase the cost such as the number of uninsured drivers and the high-risk drivers who live in and visit the state. It’s good to know these factors so you can take some steps to decrease your overall insurance costs, including the premiums you must pay annually or monthly. Knowing these factors will help you when speaking to your insurance agent about discounts that are available.
Here are some factors that affect Florida’s car insurance costs, ways to save on your auto insurance rates, and the insurance companies that offer the cheapest rates on average.
Factors That Affect Florida Car Insurance Costs
When determining car insurance costs, insurance companies will look at several factors. Some factors are specific to the driver or their vehicle while others automatically come with living in Florida. According to Autolist, Florida ranks third in the United States for its high car insurance rates, with an annual average of $2219, a 52 percent increase over the national average of $1457. Here are just some considerations that affect Florida car insurance premiums:
- Uninsured Drivers
- High-Risk Drivers
- Busy Roadways
- Bad Weather
Per Insurance Panda, the State of Florida requires that motorists carry minimum insurance coverage including property damage liability coverage of $10,000 and property injury protection of $10,000. However, at 26.7 percent, Florida has the highest number of uninsured motorists nationwide. This figure is one of the main reasons for increased insurance costs in Florida since 2009.
The substantial number of high-risk drivers also contributes to Florida’s rising insurance costs. High-risk drivers include the elderly, tourists who come visit the state, and students who pursue higher education at one of the many colleges and universities throughout Florida. According to WalletHub, Florida welcomes 128 million tourists annually. These high-risk drivers contribute to the more than 400,000 car accidents annually, as reported by the Florida Highway Safety and Motor Vehicles Department.
WalletHub also states that Florida is the third-busiest state after California and New York, which leads to busy roadways. The busier the roadways, the more likely an accident will occur, and this increases insurance costs.
Florida is the Sunshine State, but it’s also known for unpredictable weather such as intense storms and hurricanes. This dangerous weather can cause a lot of property damage. Florida drivers are aware of the damage storms can cause. In a story on Car and Driver, a man parked his smart car in his kitchen when Hurricane Dorian was threatening Florida’s shores.
Bad weather also includes flooding along the coastal areas. As a peninsula, water surrounds Florida on three sides. Property near the coast or in low-lying terrains may experience damage because of flooding, so these owners should expect higher insurance premiums.
Minimum Car Insurance Requirements in Florida
The State of Florida requires drivers to carry $10,000 in Personal Injury Protection (PIP), otherwise known as Florida no-fault insurance, and $10,000 in property damage liability per accident. Nerd Wallet points out that PIP insurance also pays for medical bills, lost wages, necessary medical equipment, and other expenses related to an accident such as in-home healthcare. This insurance does not cover property damage to your vehicle. Instead, either your collision coverage or an at-fault driver’s liability coverage will help pay for the cost.
The Florida Financial Responsibility Law also requires you to pay up to $10,000 in bodily injury liability per person and $20,000 per accident. Bodily injury liability insurance covers severe injury to a third-party of an accident you caused. Additional coverage options include uninsured motorist, collision, and comprehensive coverage.
How to Get the Cheapest Car Insurance in Florida
Despite Florida’s high insurance premiums, there are ways to save on auto insurance. Keep these in mind when shopping for car insurance so you can take advantage of the discounts different companies offer. Standard discounts include anti-theft devices on a vehicle, having multiple cars on your policy, taking a defensive driving course, and establishing yourself as a good driver with a clean record.
Per Autolist, you may also notice a decrease in your insurance rates if you’re a senior citizen, member of the military, veteran, or qualify as a good student as determined by the insurance company. A good credit score will also make a difference in your insurance premiums. In fact, credit score can hold a stronger weight than some driving record blemishes, like a DUI or at-fault crash, according to Nerd Wallet. For their study, Nerd Wallet averaged rates for 40-year-olds who earned a good driver discount because of their clean driving record, yet had poor credit.
The Cheapest Car Insurance Rates in Florida
Although insurance rates can vary according to your location, vehicle features, and other factors, there are certain insurance companies that stand out as offering cheaper rates in Florida. Give PINI Insurance a call today to see how much you can save.