Written by: Emily Joswiak • January 27, 2023• Auto

Why Does Car Insurance Cost So Much in Florida

If you’re thinking of moving to Florida, there are some things you should know, like why car insurance costs more there than in other states.

Car insurance is vital for drivers across the US, and every state requires some form of insurance. However, every state has different laws and circumstances that affect the cost of insurance. In this article, we’ll cover why Florida has some of the highest insurance costs in the nation.

More Requirements

Florida has requirements for the quality of insurance policies in the state. Each policy needs to cover a certain amount to qualify as coverage. This means that companies in Florida take on a bit more risk as they need insurance plans that will meet these requirements.

Increased Risks

The major factor that determines the cost of insurance is the risk that the company takes when they cover someone. The more money they potentially need to pay, the higher the premium is for the coverage. Florida is a state with various dangers that increase the chance of accidents, like severe weather and unusual terrain, which increases the premium.

Insurance Punishments

One reason why Florida’s insurance is so expensive is that it punishes people for driving infractions. Specifically, the state requires drivers to get an FR-44—a document that proves insurance coverage—if one’s license is revoked. This can increase insurance costs a lot, as you need more expensive coverage to get your license back.

Uninsured Drivers

Florida is unique as they have a higher percentage of uninsured drivers than the national average, with 20 percent of drivers lacking insurance while on the road. That is quite a bit compared to the 12 percent average across the nation. It’s riskier for companies to insure motorists in Florida because they will need to pay out more in accidents with uninsured drivers.

While the price difference in Florida for insurance is noticeable, it isn’t too large of a gap. Additionally, you can negotiate and use other methods to decrease your premium, even in places with higher average insurance prices.

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Last modified: January 27, 2023