Decoding the High Costs of Car Insurance in Florida

Driving in Florida is a beautiful scenic experience, but it comes at a high cost. Floridians pay some of the highest car insurance rates in the nation. Unpredictable weather that causes car accidents is one of several reasons for high insurance rates. Here’s a look at why car insurance in Florida is so expensive.

Heavy Traffic and Busy Roads

Since Florida is a top state for attracting tourism, it has busy highways and city streets. In 2020 nearly 80 million travelers visited the Sunshine State. Famous theme parks, beaches and ports attract tourists from all over the world. The state ranks number 3 in heaviest traffic, creating higher risks for accidents.

Extra Coverage Requirements

As with most other states, Florida requires all drivers to carry car insurance. The coverage must comply with the state’s minimum requirements. You must carry liability coverage for at least $10,000 and the same amount for personal injury protection (PIP). The reason PIP is considered an extra requirement is due to Florida’s status as a no-fault state. In other words, regardless of who caused the accident, your medical bills will be covered.

Expensive Healthcare

Healthcare is one of the nation’s biggest industries, as Americans spend $3 trillion per year on medical products and services. As with home and auto insurance, Floridians pay among the most expensive healthcare costs in the nation. The Commonwealth Fund reports that the average Florida resident spends about 14 percent of their income on healthcare.

High-Risk Drivers

Some drivers learn the hard way that it can be very costly to be a high-risk driver. Speeding as a pastime can result in an expensive ticket and may cause an accident. All Florida drivers must prioritize safety as part of their normal driving behavior. When one insurance agency tags you as a high-risk driver, it can mean the whole insurance industry has access to those details.

Uninsured Drivers

About 20 percent of drivers in Florida are uninsured, meaning they are breaking state law and could face serious penalties if pulled over. The national rate of uninsured drivers is 12 percent. Florida ranks number six in the United States for drivers avoiding coverage. Uninsured motorist insurance is not a state requirement but can come in handy if you are hit by someone who lacks coverage.

Inclement Weather

Florida experiences hurricanes and tornadoes that contribute to traffic accidents. These natural disasters can damage your vehicle to the point your insurer declares it to be a total loss. So many auto damage claims are filed in the state due to these disasters that it drives up the cost of insurance.

Driver’s Age

Part of what determines your monthly insurance premium is your age. Teens and seniors usually pay the highest car insurance in Florida because they are most likely to get into an accident. Florida’s young and old demographics are 1.5 percent higher than the national average.

Paying more for car insurance in Florida should be expected due to the state’s high risks for natural disasters that cause enormous damage. Nonetheless, there are still multiple ways to lower your auto insurance rates. Contact us here at Locke Insurance Group to learn more about how we can help you find affordable auto insurance in Florida.

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