In this post you'll get information relating to why is Florida car insurance so expensive. The high cost of car insurance in Florida is caused by..
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| Why Is Florida Car Insurance So Expensive |
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Why Is Florida Car Insurance So Expensive
In this post you'll get information relating to why is car insurance so expensive in Florida.
A year's worth of automobile insurance in Florida costs an average of $2,208, making it the fourth most expensive state in the country. As a result of their proximity to the coast, the states of Georgia and Alabama have cheaper insurance premiums than those in neighboring Florida.
The high cost of car insurance in Florida is caused by a various factors. These include environmental elements, such as traffic density and weather concerns, as well as the characteristics of individual drivers. The cost of car insurance in Florida is so expensive that if you live here, you need to be proactive in comparing quotes.
The cost of car insurance in Florida is so expensive that if you live here, you need to be proactive in comparing quotes.
The Most Important Things to Remember About Car Insurance In Florida
Drivers in Florida will be required to pay an average of $2,208 per year by the year 2021. From 2015 to 2021, Florida's auto insurance rates are expected to rise by 25%.
Because of the high cost of healthcare, high rates of uninsured motorists, congested highways, and additional insurance requirements in Florida, vehicle insurance is more expensive than in other states.
Because of this, there are a number of strategies to lower your Florida auto insurance premium.
Reasons Why Is Florida Car Insurance So Expensive
You're not alone if you've seen a rise in insurance costs during the past several years. The cost of automobile insurance has risen across the United States, and Florida's prices are following suit. Florida state's crowded roadways, higher insurance requirements, high healthcare expenditures, high-risk drivers, uninsured drivers, and severe weather threats all contribute to this trend contribute to cost of car insurance in Florida being so expensive. Why Is Florida Car Insurance So Expensive
Why Is Florida Car Insurance So Expensive Table of Contents
  #1.1 Threat of Severe Weather
  #1.2 False Claims in a large number
  #1.3 Requirements for Additional Insurance
  #1.4 Personal Injury Protection Requirement
  #1.5 Expensive Healthcare Charges
  #1.6 Population
  #1.7 High-Risk Drivers
  #1.8 Uninsured Motorists
  #1.9 Traffic and Congested Roads
  #1.10 Tourism
  #1.11 Driver's Age
#2. Florida car insurance costs
  #3.1 Compare prices from different car insurance companies
  #3.2 Consider combining your policies
  #3.3 Discounts can be a great way to save money
  #3.4 Reduce Your Time Behind the Wheel
  #3.5 Live in a Smaller City
  #3.6 Purchase a Safe Car
  #3.7 Make sure your driving record is clean
  #3.8 Use a comparison tool for insurance
  #3.9 Increase your deductibleÂ
  #3.10 Opt for Pay-per-mile car insurance
#4. How to Get the Cheapest Car Insurance in Florida
#5. The Cheapest Car Insurance Rates in Florida
#6. Minimum Car Insurance Requirements in Florida
Why Is Florida Car Insurance So Expensive
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Why Is Florida Car Insurance So Expensive?
#1. Reasons why is Florida car insurance so expensive
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| Why Is Florida Car Insurance So Expensive |
#1.1 Threat of Severe Weather
#1.2 False Claims in a large number
The cost of legal fees is often passed on to the customer by insurance providers. False insurance claims are common in Florida, and many of these cases require legal representation. It's for this reason that insurance companies have raised their premiums to assist cover the costs of litigating these claims.
#1.3 Requirements for Additional Insurance
Car insurance is needed in Florida, as it is in the majority of states. There are state minimum liability standards for drivers to follow, including $10,000 in property damage and $10,000 in personal injury protection (PIP) coverage. Due to Florida's no-fault insurance policy, PIP is an additional obligation. In the event of an accident, this insurance will pay for your expenditures regardless of who is at fault.
#1.4 Personal Injury Protection Requirement
Personal Injury Protection (PIP) is a legal requirement for all motorists in Florida. As a result, it is a faultless condition. Florida drivers face a higher premium because of this comprehensive coverage that is not needed in most other states. No matter who was at blame for the accident, the driver and passengers' medical expenditures are covered to a considerable extent by PIP no-fault insurance. One of the primary causes of California's exorbitant insurance rates is the state's requirement that all drivers have collision and comprehensive coverage.
#1.5 Expensive Healthcare Charges
Why Is Florida Car Insurance So Expensive
The car insurance company use the premiums you pay as a customer to help pay for your expenditures if you are involved in an accident. Expenses related to injuries sustained by drivers and their passengers, as well as those incurred by the other party, are covered by the policy.
Approximately $3 trillion is spent on healthcare in the United States each year. Although healthcare expenses are high nationwide, Floridians spend more than the national average. An average of 14% of a person's gross income is spent on healthcare in Florida, according to the Commonwealth Fund. The high cost of healthcare in this state necessitates car insurance companies to charge high premium rates, which causes car insurance cost to be so expensive in Florida.
#1.6 Population
Because of its high population density relative to its size, Florida is considered a "dense" state. Even though Florida is only the 22nd-largest state in the United States, it has the third-largest population. The state's population is just slightly smaller than those of neighboring California and New York.
The roads are congested as a result of the city's large population. There is a direct correlation between increased traffic on the road and an increased risk of traffic accidents. To put that into perspective, Florida has an average daily accident rate of 1,100, as reported by the state's Department of Highway Safety and Motor Vehicles (FLHSMV). Car insurance premiums will rise as a result of this increased risk.
#1.7 High-Risk Drivers
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| Why Is Florida Car Insurance So Expensive |
Why Is Florida Car Insurance So Expensive
In many jurisdictions, you'll be obliged to buy SR-22 insurance if you've been charged with DUI, several at-fault accidents, or another serious traffic offense. In comparison to the average policy, these policies have significantly higher premiums. Florida, on the other hand, imposes harsher punishments on drunk drivers. Drivers who do not meet the requirements for an SR-22 must file a FR-44, which mandates that they acquire coverage with limits of 100/300/50 as an extra to $10,000 in PIP protection coverage.
This filling contributes to why is Florida car insurance so expensive.
This filling causes car insurance premiums in Florida go be higher. Drivers with clean driving records pay an average of $1,379 annually in insurance premiums. High-risk drivers, on the other hand, must fork over an extra $861 a year.
#1.8 Uninsured Motorists
Despite the fact that all drivers in Florida are legally required to have car insurance, 20% of them don't have car insurance. This is far higher than the national rate of just 12 percent. Uninsured drivers are more common in Florida than in any other state, making it more likely that you will be involved in an accident with an uninsured driver.
Purchasing uninsured motorist insurance is suggested even if it is not part of the state's minimum car insurance requirements. If you're involved in a collision with an uninsured motorist, this insurance covers your losses. Florida car insurance costs are pushed up by this additional coverage because it must be obtained separately.
#1.9 Traffic and Congested Roads
Why Is Florida Car Insurance So Expensive
In 2020, an estimated 79.8 million visitors are expected to visit Florida. It's no wonder that Florida is the third-busiest state in the US, what with its ports, beaches, and world-class amusement parks.
Increased traffic on Florida's highways as a result of these visitors drives up auto insurance costs. The closer people drive to other vehicles, the more likely they are to get into an accident, according to a carrier's perspective.
#1.10 Tourism
Additionally, the state's tourism industry is a major contributor to rising insurance costs. An estimated 128 million people visit Florida each year in an effort to take in the diverse offerings of this diverse state. Drivers are more likely to get involved in collisions and cause damage to their vehicles when they venture out of their comfort zones. Because of this, insurers take this into account when determining premiums in specific regions.
#1.11 Driver's Age
Car insurance rates are heavily influenced by a driver's age. Young adults and the elderly pay more for car insurance than the average driver. Because of the state's big population in both of these age groups, Florida's insurance premiums are quite high. The combined population of Florida's 18–24-year-olds and elders is 17.7 percent, which is 1.5 percent greater than the national average, according to Census data.
Why Is Florida Car Insurance So Expensive
#2. Florida car insurance costs
The cost of full-coverage car insurance in Florida currently stands at $2,208 per year, or $184 per month. Car insurance Florida have consistently risen over the previous six years.  Since 2015, the state's average premium has risen by $379.
#3. Ways to save on car insurance in Florida
If you want to save on car insurance in Florida, you need to be aware of all the methods you may do it. Car insurance in Florida might be more cheap if you follow the advice provided below.
#3.1 Compare prices from different car insurance companies
Comparing car insurance prices from at least five different companies is an excellent method to discover the best deals. The criteria that car insurance companies take into account when determining premiums may be similar, but the methods through which they arrive at their insurance rates differ. The easiest way to choose the cheapest car insurance company for your needs is to get quotes from multiple companies and compare their insurance rates.
Why Is Florida Car Insurance So Expensive
#3.2 Consider combining your policies
Car insurance isn't the only type of insurance offered by car insurance firms. You may save hundreds of dollars a year by bundling your car and home insurance policies, for example, rather than getting separate quotes for each.
#3.3 Discounts can be a great way to save money
Why Is Florida Car Insurance So Expensive
There are a variety of discounts offered by insurance companies to prospective customers. Anti-theft devices fitted in your vehicle or having a clean driving record can earn you discounts on your car insurance premiums. Others will even give you a discount if you switch insurance provider. But remember that not every deal is available in every state or with every insurance company. To find out if you qualify for any discounts, speak with each prospective insurer individually.
#3.4 Reduce Your Time Behind the Wheel
Driving less is one of the best strategies to lower your insurance premiums. Per-mile insurance plans, available from a variety of providers, provide coverage similar to standard policies, but charge a premium based on the number of miles you drive each year. If you only require a car once in a while, this could be a good option for insurance.
#3.5 Live in a Smaller City
A city like Miami has a higher risk of car accidents because of its vast population. Because of this, insurance companies will charge you more for your policy. Because of the smaller population and fewer drivers on the road in places like Gainesville and Panama City, residents enjoy lower auto insurance rates.
#3.6 Purchase a Safe Car
Why Is Florida Car Insurance So Expensive
How much you pay for insurance depends on the type of vehicle you drive. The cost of insuring a family car or a hybrid will be far less than that of a high-performance vehicle. You can save money on your insurance premiums by driving a well-maintained vehicle.
Why Is Florida Car Insurance So Expensive
#3.7 Make sure your driving record is clean
Why Is Florida Car Insurance So Expensive
Maintaining a clean driving record is the greatest way to keep your insurance prices down. Most insurance companies will use your driving record to determine your premiums. You can save money on your auto insurance by driving safely and avoiding problems.
If you've ever had a ticket, a car accident, or a previous driving conviction on your record, your insurance company will be able to see that information. They may look back three or five years, depending on the company. You'll have to pay more for car insurance if you've ever had a DUI on your driving record.
#3.8 Use a comparison tool for insurance
Comparing car insurance rates online is a smart move because it saves time. You don't have to visit multiple websites to receive price quotes with these solutions. The drawback is that you may not have access to all of your policy's options if you use these tools. Because of this, they are a great way to narrow down your options while saving you time and effort.
#3.9 Increase your deductibleÂ
In Florida, the amount of your yearly deductible affects your car insurance costs. When you make a claim, this is the amount you pay out of your own wallet before your insurance company begins to cover your costs. Lower premiums are frequently the result of a bigger deductible; however, you should keep in mind that if you are in an accident, you will be responsible for paying a greater portion of the bill.
#3.10 Opt for Pay-per-mile car insurance
Pay-per-mile car insurance lets you pay for coverage based on how many miles you drive. Pay-per-mile car insurance program that can lower your monthly premium. Pay-per-mile is a type of car insurance policy that's best suited for low mileage drivers.
In most cases, your age, driving history, location, and other characteristics are used to establish your premium. Pay-per-mile car insurance also considers these aspects, but it is mostly focused on consumption, i.e., on how many miles you drive. If you don't drive much, this insurance is a good option.
Why Is Florida Car Insurance So Expensive
#4. How to Get the Cheapest Car Insurance in Florida
Despite Florida's high insurance costs, there are ways to save on auto insurance. Keep these in mind when shopping for car insurance so you can take advantage of the reductions different companies offer. Standard savings include anti-theft equipment on a vehicle, owning multiple cars on your insurance, taking a defensive driving course, and establishing yourself as a good driver with a clean record.
Per Autolist, you may also notice a discount in your insurance prices if you're a senior citizen, member of the military, veteran, or qualify as a good student as judged by the insurance company. A decent credit score will also make a difference in your insurance costs. In fact, credit score can retain a stronger weight than other driving record blemishes, including a DUI or at-fault crash, according to Nerd Wallet. For their analysis, Nerd Wallet averaged rates for 40-year-olds who obtained a good driver discount because of their clean driving record, yet had low credit.
#5. The Cheapest Car Insurance Rates in Florida
According to your location, vehicle attributes, and other considerations, certain insurance providers in Florida are known for offering lower rates than others. State Farm, Travelers, GEICO, USAA, and the Florida Farm Bureau are listed among the state's lowest-rate insurers in a 2019 Value Penguin research. State Farm and GEICO have rates that are 44 percent lower than the national average for both full and minimum coverage insurance, which includes comprehensive and collision coverage.
Keep in mind that if you choose for the bare minimal coverage on your car insurance policy, you could be on the hook for hefty out-of-pocket costs in the event of an accident.
According to Insurance Panda, premiums at Progressive and Allstate are both 35% more than the state average, making them two of Florida's most costly auto insurance providers. As a result, Allstate has the highest customer satisfaction rating in the industry, despite their expensive premiums.
According to Car and Driver, insurance rates in Michigan are the highest in the US, averaging $2611 per year. Florida isn't far behind the rest of the country, but there are ways to lower your insurance expenses. Consult with your insurance agent to find out whether you qualify for any discounts and use those savings to lower your premiums.
Why Is Florida Car Insurance So Expensive
#6. Minimum Car Insurance Requirements in Florida
PIP (also known as Florida no-fault insurance) and property damage liability (also known as UM/UIM) are mandatory in the state of Florida. Medical bills, missed earnings, medical equipment, and other expenditures related to an accident can all be covered by PIP insurance, Nerd Wallet notes. Property damage to your car is not covered by this policy. Instead, the expense will be covered by either your own collision insurance or the liability insurance of the at-fault driver.
Your financial responsibility is also limited to $10,000 per person and $20,000 per accident under Florida's Financial Responsibility Law. Liability insurance for bodily injury protects you in the event that an accident you caused results in serious injury to a third party. Comprehensive and uninsured motorist insurance are also available.
Why Is Florida Car Insurance So Expensive.
Conclusion
Even though Florida has some of the highest insurance rates in the country, there are numerous methods to save money. You can obtain the best deal if you know how your rate is determined. Even if you can't change where you reside, there are still a few things you can do to save money on your Florida auto insurance.
Why Is Florida Car Insurance So Expensive
Why Is Florida Car Insurance So Expensive faqs
Why are car insurance rates so high in Florida?
Car insurance is so expensive in Florida because there are lots of requirements in Florida, meaning you have to pay for more policies depending on your status as a driver. Lastly, the average cost of car insurance in Florida is more expensive because the state is a high-traffic area with hazardous weather.
