The Sunshine State is consistently one of the top three most expensive states in the country for car insurance for both state required minimum and full coverage policies. Motorists need to pay about 2.5% of average household income for vehicle insurance premiums, which is more than twice in comparison to one of the cheapest places like Maine. Florida has one of the highest auto-theft figures in the country. So, motorists may be well served with full coverage policies that come with Comprehensive coverage, which pays for stolen auto claims.
Florida Minimum Automobile Insurance Requirements
It is one of the few no fault states and the requirement are;
- Personal injury protection (PIP): $10,000
- Property damage liability (PD): $10,000
Personal Injury Protection covers your and your family’s medical costs, lost wages and death benefits, even if you’re at fault. Property Damage Liability pays for damages you cause to another person’s vehicle or property.
Uninsured/Underinsured Motorists Bodily Injury coverage (U/UM BI) is recommended too (although you can reject it), with below minimum limits;
- U/UM BI: $10,000 per person
- U/UM BI: $20,000 per accident
Uninsured Motorist coverage pays for medical expenses for you and your passengers if the accident is caused by an uninsured or underinsured driver.
Florida is the only other state (with Virginia) using FR-44 form, instead of SR-22, for drivers with severe infractions on record requiring an additional confirmation that they have state required minimum vehicle insurance coverage.
You must have proof of minimum coverage when you register a vehicle. You can read more about no-fault auto insurance here.
Unfortunately, it has one of the highest numbers of uninsured drivers at %20.4, which is about 8% higher than the country average. At least with no-fault vehicle insurance rules in this state, you would have coverage for your non-serious injuries rather than waiting for third parties to pay for it. You should definitely consider buying Uninsured Motorists coverage as well. It is best to get defensive when you cannot influence who buys auto insurance but their actions affect you directly.
Why Is Car Insurance So Expensive in Florida?
One of the main criticisms of the PIP requirements is that it is forcing drivers who already have medical insurance to buy coverage for the second time. The argument for the legislation is that many motorists don’t have health insurance. The efforts started in the 1970s in order to reduce lawsuits and pay for injuries in minor vehicle accidents quickly. Despite its initial intentions, the PIP system in Florida has been criticized for leading to increased lawsuits, fraudulent claims, and high insurance rates.
The 2012 Florida PIP Reform prohibited inclusion of acupuncture, massage therapy costs and limited chiropractic care in claims. Accident victims are required to seek medical attention within 14 days. Authorities limited non-emergency costs to $2,500.
How Much Does Automobile Premiums Cost in Florida?
Its demographics like dense population and hurricanes are other factors that affect premiums. Basic state required coverage is $1,128, which is almost twice higher than the US average. The position doesn’t change much in terms of full coverage either as the average premium is $3,183, which is $1,169 higher than the national average.
If you currently have an expensive policy or you have just been given a hefty quote you shouldn’t panic yet. There are many other companies in the market to shop around and try to find the most competitive provider for you.
Most Affordable Car Insurers in Florida
Your premiums are greatly influenced by your zip code and your chosen insurance company. This emphasizes the significance of shopping around to find the most competitive car insurance provider for your unique details and requirements. You might consider initiating this process by obtaining quotes from the following companies, which are recognized for offering more affordable rates in FL.
- State Farm
- GEICO
- Travelers
- Nationwide
- Florida Farm Bureau
The highest auto insurance premiums are in the Miami metropolitan area. The average premiums in Miami, Tampa and Palm Spring are about 28% higher than the state average. Orlando and Jacksonville rates aren’t much far off the state average. The above companies are generally cheaper in these cities as well.
Interesting Florida Automobile Insurance and Driving Facts
- The Insurance Research Council’s findings show that in Florida, property damage liability claims are 10% higher per 100 insured vehicles compared to the national average. Floridians also have a 40 percent higher tendency to file injury claims after accidents, with an above-average bodily injury to property damage claim ratio. This unique trend, along with higher median payouts for auto injury insurance claims, indicates greater claim frequency and costs in Florida. Auto claimants in Florida undergo more medical procedures like MRI scans and are more likely to involve attorneys, leading to increased claim expenses. These factors collectively contribute to the elevated vehicle insurance premiums in the state.
- Florida’s car insurance law prohibits deductibles for windshield claims, though they can apply to other types of glass like mirrors, lights, or windows.
- Florida is one of the three states with the most registered vehicles in the nation and the number of vehicles registered has been increasing steadily in recent years.
- In Florida, registered vehicles must be insured, even if not in use. To prevent a driver’s license suspension, one must surrender the plate and registration before canceling the insurance policy.
- Failure to maintain insurance in Florida can result in the suspension of driving privileges, license plate, and registration for up to three years or until proof of insurance is provided. Reinstatement fees, ranging from $150 to $500, depend on prior insurance lapses. This state doesn’t provide temporary licenses for insurance-related suspensions, and there are no criminal penalties for lacking insurance.
- Florida, a state with a large population and a significant number of young drivers, has around 16 million drivers.
- Each year, over a million careless driving tickets are issued in the state, highlighting the widespread problem of driver recklessness on the roads.
- Despite frequent heavy rainfall in Florida, a significant portion of accidents (84%) and fatal crashes (88%) occurred during clear weather conditions with dry roads. Only a small percentage (6.5%) of accidents were attributed to adverse weather conditions, according to glotzerlaw.com.
When you live in a region with high automobile insurance rates, you should be even more motivated to find the best value coverage. Even a minor discount can translate to a substantial reduction in the amount you need to pay. Furthermore, the process of obtaining and comparing a few quotes doesn’t require much time. Engaging in this activity promptly exposes all available options, empowering you to make a well-informed choice.