Florida Among the Most Expensive States for Car Insurance

Florida is now home to the most expensive car insurance alongside New York and Louisiana. Bankrate reports that auto insurance coverage in Florida costs $1000 more than the national average. This makes Florida’s premium 56% above average.

Florida has one of the highest rates of deadly car crashes, ranking third behind Texas and California which had higher fatalities. According to Bankrate, the average annual premium in Florida was $2,364 for full coverage as of December 31, 2021. It got even higher in 2022, with the premium reaching $2762 per year. Since the national average, as stated by Bankrate, is $1674 for full coverage, Florida drivers are paying roughly $700 more for their auto insurance. Premiums can be affected by several factors like where you live in Florida, coverage type, what level you choose, the cost of living, and risks in your area.

A Staggering Number of Crashes

A prominent reason behind Florida’s high prices is the staggering number of hit-and-run crashes. And this seems to be an old phenomenon. According to the Florida Highway Safety and Motor Vehicles Department data, there were more than 700,000 hit-and-run crashes from 2015 to 2021. Within that number, 1600 ended in a traffic fatality. Just in 2021 alone, the state had 310 deaths.

Another such reason is the high rate of underinsured drivers in the state. According to data collected by the Insurance Research Council, 20.4% of Florida drivers do not have car insurance, which means one in eight Florida drivers are uninsured.

Hialeah has the most expensive insurance in Florida at $3405, while Gainesville has the cheapest car insurance at $1782.

Speaking on the issue, Terry L. Rhodes, FLHSMV Executive Director, said, “Hit-and-run crashes and fatalities are tragically on the rise in our state – causing devastation to Florida’s families and communities. Drivers who choose to flee after being involved in a crash that results in property damage, injury, or death are not just breaking the law – they are displaying a blatant disregard for the life and property of others. Please, stay at the scene and call for help – it could save a life. “When an accident occurs in Florida, it’s essential to know that no one will be considered at fault. This means both drivers must file with their car insurance and cover any potential medical costs incurred from the crash regardless of who caused it or what consequences may follow.

State Mandated Insurance

In Florida, drivers need to purchase personal injury protection. The insurance itself will pay for the driver and passenger’s medical expenses and lost wages if an accident occurs while driving or another party’s negligence. The selected coverage will also cover anything broken or damaged during accidents.

Several other factors like higher traffic density, busy roadways, extreme weather conditions, and increased healthcare costs can also be responsible for the state’s massive insurance costs.