Car insurance in Florida can be really expensive. There are several reasons why the costs of this type of insurance continue to rise.
In this article, we will know some of the reasons that make prices go up, but we will also learn how to hire your car insurance policy at the best possible price.
Why are insurances expensive in Florida?
When assessing the price of car insurance in Florida , we should take into account that not all the factors that make the policy expensive are related to this state. That is to say, we should separate those elements that can raise the cost of an insurance policy in general from the factors that are specific to Florida.
That is important because, if we look at recent data on the average price of car insurance in the United States, it turns out that Florida has the highest average cost of car insurance. In fact, it would stand on the podium as the third most expensive, with an annual average of $2219.
For comparison, the average cost of car insurance in the United States is $1457. We are talking about a difference of almost 52%.
The usual factors that make car insurance expensive anywhere in the country are quite simple to understand:
- Type of vehicle and cubic capacity.
- Insured’s history
- Age of the insured
- Type of coverages
These factors apply to any location in the United States and must take local elements into account. In the case of Florida, we find up to four differential aspects. Let’s analyze them one at a time.
Lack of Insurance
Florida requires drivers to have minimum insurance coverage with a property damage policy of $10,000 and property injury at another $100,000. However, there is one fact that is very relevant: Florida is one of the states with the highest rate of uninsured drivers.
Since 2009, Florida has consistently topped the car insurance price charts and is also on the list for the highest number of uninsured drivers. Specifically, according to 2019 pre-pandemic data, just over 26% of Florida drivers have no insurance at all.
This very high rate means that, at the same time, the risk of suffering a claim and not finding compensation in the vehicle that causes it is considered to factor into insurance prices.
The average age of the driver and the risks
Florida is known as one of the golden retirement destinations in the United States (and even worldwide). This is true, as many people choose this destination for retirement once their professional life is over.
Obviously, the number of older people is very important in Florida, but we must add other groups considered high-risk drivers. Two very important ones are young people, taking into account many students in higher education. The other factor, one which is even higher, is the 128 million annual tourists.
The volume of accidents in Florida exceeds 400,000 incidents annually. Therefore, added risk factors such as the at-risk driver make policies more expensive.
Weather and car insurance
Weather is another really important factor. Keep in mind that Florida is considered the Sunshine State, but it also has unpredictable weather changes. These tend to involve intense storms, hurricanes, or other major weather phenomena.
The risk of damage to vehicles caused by driving under adverse weather conditions or simply being affected by nature (e.g., high winds) is another factor that increases the cost of insurance.
Heavy traffic and the price of car insurance in Florida
Of course, massive road occupancy leads to a traffic pattern in which the probability of an accident is multiplied. Florida is the third state in the country with the highest traffic density, only behind California and New York. That is another factor you should consider to better understand the price of insurance in this state.
What can you do to lower your car insurance cost in Florida?
While it is true that you cannot avoid all of the above conditions that make your insurance more expensive, there are things you can do to greatly reduce the cost.
First of all, multiple policies. Having several insurances grouped in the same company or broker can make your car insurance cheaper by landing you a discount. Also, in other cases, you can get good deals when you insure several cars with the same policy/company.
Good credit history and a good driving record are also important factors. We put both elements together because, although it would seem that the driving record is more important than the credit history, this is not always the case. It should be noted that insurance companies also assess the creditworthiness of the driver.