Inflation and tough economic times have made it difficult for families around the world to make ends meet, and one of the culprits is rising insurance costs. This is especially true in Florida, where auto insurance rates are a whopping 59% above the national average. Many car owners are no doubt wondering why they pay so much – and, more importantly, what they can do about it.
How much do Floridans pay for car insurance?
Florida has some of the highest auto insurance rates in the country. According to Kristine Lee of The Zebra, Florida drivers pay an average of $2,425 a year — 59% more than the national average. Even if you get the absolutely legal auto insurance you need, you can still expect to pay more than $700 a month, which is still 51% above the average.
Why is Florida car insurance so expensive?
So what makes auto insurance in Florida so prohibitively expensive?
For one thing, insurance premiums are higher everywhere, not just in Florida. Inflation, rising parts costs, supply chain issues, extreme weather events and even a rise in auto and catalytic converter thefts have all contributed to higher premiums across the country. But there are a few other reasons why Florida’s rates in particular are so high:
High traffic. Congestion means more opportunities for collisions or other incidents, and areas like Miami, Tampa and Orlando have some of the heaviest traffic in the state. In fact, three Florida cities rank among the worst transportation hubs in the country.
Weather. Extreme weather events have been on the rise for some time, and major weather disasters mean large payouts for insurance companies, often running into hundreds of millions of dollars or more. Florida, in particular, has a high rate of storms and hurricanes that can cause untold damage—and major damage.
Uninsured Drivers. There is a a lot of of uninsured drivers in the United States – over 13% of all drivers in the US drive without insurance. But that rate is doubled in Florida, where over 26% of drivers are uninsured. That is more than every fourth driver. Combined with Florida being a no-fault insurance state, this means insurance companies often have to pay higher payouts in the event of an accident…which translates into higher premiums for policyholders.
demographics. Florida is home to many retirees and students, both of whom pose a higher-than-average risk. Older drivers can be more prone to accidents and breakdowns, while younger drivers are more reckless and more likely to drive while drunk.
Tourism. As a popular vacation spot, Florida experiences a high number of visitors year-round, which increases traffic on the road. Visitors also see Florida as a “party state,” meaning it’s more likely to drive under the influence of alcohol or drugs.
How do you find cheap car insurance in Florida?
So what can you do to lower those insurance premiums? Here are a few tips:
- Maintain a clean driving record. Do your best to avoid traffic violations, DUIs, and collisions, all of which will skyrocket your insurance premiums.
- Trade in your high performance car for a safer vehicle. Sports cars and high-performance vehicles attract higher insurance premiums for a number of reasons – they tend to encourage riskier driving and are often magnets for thieves. A more “sensible” vehicle with a good safety rating can help lower your insurance premiums. It might not look as good on the road, but it could save you a lot of money in the long run.
- Take advantage of discounts. Did you know that insurers offer dozens of discounts based on different criteria? These include good student discounts, multi-vehicle policies, bundled auto and home insurance, full deposit discounts, and more.
- Compare car insurance quotes to find the best cheap car insurance in Florida. You don’t have to stay with your insurance company forever. You could find a much better deal elsewhere!
- If you don’t drive as much as you used to, consider switching to mileage-based insurance.
- Take a defensive driving course.
- Maintain good credit. While some states have banned the use of credit score information in determining auto insurance premiums, it is still common practice to include it. Do what you can to increase your credit score and your car insurance rates will go down.
Do not take any risks
With insurance premiums so high and finances so tight for many people, it might be tempting to forego auto insurance and hope for the best. This is a bad idea for several reasons. It doesn’t matter how good a driver you are – it’s just as often the “other” that causes an accident. Forego your insurance and you could be on the hook for thousands in medical and legal fees.