Auto Insurance Expensive
Most Expensive States for Auto Insurance
Unfortunately, car insurance isn’t cheap in Florida. Florida is consistently at the top or near the top of the list of states by auto insurance cost. Below are the top 5 most expensive states for car insurance with full coverage:
- New York
- Rhode Island
If you compare the average price of car insurance in these states to the national average, drivers in the top 10 most expensive states pay about 37% more than the national average.
If you look at the list of states by cost but use the cost of minimum coverage, Florida is not number 1 but only drops to number 3. Below are the top 5 most expensive states for car insurance with minimum coverage:
- New York
- New Jersey
Data Source: Quadrant data services 2020
High Numbers of Uninsured and High-Risk Drivers Increase Auto Insurance Rates
In Florida, all drivers must have a minimum level of car insurance coverage. Drivers must have liability coverage of $10,000 for property damage liability and $10,000 in personal injury protection (PIP). PIP covers you up to your policy limits whether the accident was your fault or not. Although not required, many people also choose to include bodily injury liability insurance. Bodily injury liability will pay for the severe and permanent injury or death of othersIf you cause an accident with your car.
Florida ranks number one nationally when it comes to the number of uninsured drivers. Almost 26.7% of drivers in Florida operate vehicles without insurance. The states with high numbers of uninsured driversare typically at the high end when it comes to auto insurance rates. This is because if you are in a car accident with an uninsured motorist, your insurance company pays for your damage and loss under the uninsured motorist coverage on your policy. The more claims insurers pay for drivers without insurance,the higher the insurance premiums go.
Additionally, Florida has a large population of high-risk drivers. With a significant number of elderly drivers, tourists, and visitors traversing Florida’s roads and highways, accidents are more common.This, in addition to the high number of uninsured drivers, is a contributing factor to the state’s high insurance rates.
Hazardous Weather Increases Florida Car Insurance Rates
Florida is known for its beautiful weather throughout the year. However, it is also known for destructive hurricanesand violent storms. When this kind of weather hits, it can result in the damage or destruction of thousands of vehicles in a matter of days or a single day.The result, thousands of auto insurance claims are filed. Insurance companies then have to payto repair or total those vehicles damaged by the weather. Auto insurance companies take these weather risks into account when determining Florida auto insurance rates, resulting in higher rates than other areas of the country where severe weather is less frequent or damaging. Residents near the coast, waterways, or low-lying terrain where flooding may occur will generally have to pay higher premiums than in other areas of the state.
Credit Score and Driving History Impact your Auto Insurance Rates
A good driving recordwill help you keep your auto insurance rates as low as possible. If you have few if any claims, the insurance company will consider that when setting your rates. There are also other factors they will take into account in determining your rates. These include your age (usually, drivers under 25 pay more), marital status (married couples often pay less), DUI tickets, speeding tickets, driving with no insurance, and accidents where you were at-fault all influence your car insurance premiums.
A history of paying your bills on time can help keep your car insurance rates low as well. Most insurers will look at your credit score when setting premiums. They consider the length of your credit history andwhat types of credit and loans you have. Your payment history, including delinquencies or late payments, are also taken into account. The insurance companies do this as they assume someone with a better credit history is more likely to pay premiums on time and pay any deductibles or other out-of-pocket costs should a claim happen and adjust rates accordingly. To increase the chance of keeping your car insurance affordable, maintain good credit, and keep your driving record as clean as possible.