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 over %20, which is about 12% higher than the country average. In a way you are lucky that the Sunshine State has no-fault vehicle insurance rules. At least 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 buy auto insurance but their actions affect you directly.
Why Is Car Insurance So Expensive in Florida?
In effect, the PIP requirement is forcing drivers who already have medical plans to buy it 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 several reforms, it has ironically created many lawsuits, fraud and high rates. According to some estimates 1/4 of premiums go to pay for PIP coverage.
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. The idea was that this would reduce claims and as a result carriers are asked to reduce their PIP premiums by 25%, unless they had reasons why they couldn’t. Premiums don’t appear to be coming down.
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
Where you live and which company offers the quote would largely determine how much you spend. Some cities have even more burdensome rates and it increases the importance of shopping around for the best deals. Looking at the cheapest companies below, you can see how much prices can be reduced by finding the most competitive provider in the market. Even a quote you receive from the cheapest (Farm Bureau) and the third cheapest (Travelers) can be considerably different.
- Florida Farm Bureau
- GEICO
- Travelers
The highest auto insurance premiums are in the Miami metropolitan area where motorists have to pay twice the state average. Tampa prices are about 70% higher too. Orlando rates are about 30% and Jacksonville only 10% higher. Clearly living in a large city adds salt to injury here and substantially reduces affordability for low-income families.