Why Are Car Insurance Annual Premiums So High in Florida?

By  //  February 18, 2022

Image source: https://pixabay.com/photos/usa-automobile-vehicle-road-miami-202435/

A recent study reveals drivers in Florida pay the highest amount of car insurance annual premiums of any state in the country. On average, Floridians pay a staggering amount of almost $2,600 per year for full auto insurance coverage.

Compare that to the average cost for car insurance annual premiums in Maine. It has the lowest cost in the United States at only $831 per year. While the rates of car insurance premiums have risen across the nation in recent years, Florida has much higher rates than the national average. Let us explore the reasons why that is the case.

Finding Cheap Car Insurance

Before looking at the reasons for the expensive cost of car insurance annual premiums in Florida, it is worth noting that if you live in Florida, you do not necessarily have to pay high prices and get car insurance cheap.

By using a reputable online comparison platform to compare cheap insurance quotes from different auto insurers, you can find lower premiums. Also, by maintaining a clean driving record and a good credit score, you can pay less for your auto insurance. 

Very Busy Roads Increase the Risk of Accidents

So, why are annual premiums so high in Florida? First off, the state’s traffic and busy roadways have something to do with it. As a top vacation destination, Florida sees around 79.8 million people visiting each year. The roads of Florida are the third busiest in the United States.

With higher traffic density comes an increased risk of road accidents. Hence, insurers in Florida need to make their premiums higher than insurance companies in other states. 

Florida Has Severe Weather Risks

It is not only an increased likelihood of car collisions that drives up the price of insurance premiums in Florida. Extreme weather conditions can cause accidents too, and Florida has more weather risks than many other states. 

Common hazards like hurricanes and tornadoes can damage cars so badly that insurance companies end up declaring losses, so insurers in Florida protect themselves by charging higher annual premiums. 

The Average Age of Drivers in Florida Drives Up the Cost of Premiums

Another factor that insurance companies take into consideration when assessing risk, which in turn contributes to determining the cost of the annual premiums, is the age of drivers.

Young drivers and seniors, on average, are at a higher risk and pay more than other drivers for auto insurance coverage. And Florida has a large population of both young people and seniors. In turn, that contributes to the higher overall average cost of car insurance premiums in the state.

Higher Penalties for Drivers Charged with DUIs Contributes to High Premiums

In most states, if you are charged with a DUI or another severe driving violation, you have to purchase SR-22 insurance, which is more expensive than the average policy. 

But in Florida, drivers who are charged with a DUI face additional penalties. They must file an FR-44 as well as get PIP coverage of $10,000. The high rates that drivers with DUI charges pay in Florida will partially contribute to the state’s high average of car insurance premiums.

There Are a Lot of Uninsured Drivers in Florida

Another factor that contributes to high premiums is the fact that, although drivers are legally required to have car insurance, a whopping 20% of Floridians do not have coverage. That is much higher than the national average of 12%.

So, the risk of having an accident with an uninsured driver in Florida is much higher than in other states. In turn, that risk factor is reflected in the high cost of car insurance annual premiums.