Florida Vehicle Insurance Premiums

It is consistently one of the top 10 most expensive states in the country for car insurance. Motorists need to pay about 2.5% of average household income for a vehicle policy, which is more than twice in comparison to one of the cheapest places like Maine. Obviously, you spend twice more if you live in a two-car household and so on. That is why you need to look for ways to get good prices here. Hopefully, insightful tips and the quote platform on this website will help in finding the best value for your circumstances.

Demographics

It is located in the southeastern region and the 22nd most extensive, 4th most populous, and 8th most densely populated in the US. Also, it has the 3rd highest population with 20.3 million residents. The state capital is Tallahassee, the largest city is Jacksonville, and the largest metropolitan area is the Miami metropolitan area.

Much of it is a peninsula between the Gulf of Mexico, the Atlantic Ocean, and the Straits of Florida. Its geography is notable for a coastline, ever-present water and the threat of hurricanes. Much of it is at or near sea level and is characterized by sandy soil. The climate is between subtropical and tropical from north to south.

Florida Minimum Automobile Insurance Requirements

Set of Images from FloridaIt is one of the few no fault states and the requirement are;

  • $10,000 bodily injury per person per accident
  • $20,000 bodily injury for all persons per accident
  • $10,000 property damage liability
  • $10,000 personal injury protection

You must have proof of minimum coverage when you register a vehicle. The DMV may require you to purchase additional coverage after an accident or conviction for certain offences. Find out how it works and what the minimum requirements are here if you have just bought a vehicle. You can read more about no-fault auto insurance here as well.

Unfortunately, it has one of the highest numbers of without coverage drivers with %24, which is about 10% higher than country average. A quarter of them cannot afford or don’t bother buying at least a liability only policy. 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 paying for it. You should definitely consider buying Uninsured Motorists coverage for the damages to your vehicle that may be caused by one of them too. It is best to get into a defensive mood when you cannot influence what the others do but their actions affect you directly.

Why Is Car Insurance So Expensive in Florida?

In affect, 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 it. 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. Although it isn’t as bad here, it is no surprise that Michigan, another no-fault system, is the most expensive state because of PIP requirements and frauds.

The 2012 Florida PIP Reform prohibited inclusion of acupuncture and massage therapy costs in claims. They limited chiropractic care. They made accident victims seek medical attention within 14 days. They 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. The effects of these changes are yet to be seen since they don’t appear to be coming down.

Another reason for these costs is the percentage of uninsured drivers. Looking at the number you would expect that it would affect everyone simply because only 76% of motorists pay premiums, from which total damages and claims are settled. Of course, the argument can be taken the other way around and affordability can be seen as the cause of this alarming figure.

How Much Does Automobile Premiums Cost in Florida?

Its demographics like dense population and hurricanes are other factors that affect average cost of auto insurance, which is $1,144 and $303 more than the US. This number represents per vehicle spending and firmly places the state in the top five most expensive. The position doesn’t change much in terms of full coverage either and the average quotes for it is $1,654. So, it may not be fair to blame no-fault status alone for high rates.

If you are trying hard and failing to find an affordable policy you may not be able to do much more. But there is no excuse for being completely ignorant to the problem and not even bothering to give it a good go. Perhaps some drivers don’t appreciate the value of buying vehicle insurance and are only concerned with cost. It is important to remember that large portion of premiums collected go to settling claims. If you don’t have the coverage you cannot make a claim when you suffer a substantial loss.

Uninsured drivers should think what would happen if they had a serious accident in which they suffered a total vehicle loss and caused injuries and property damages to other people. Would they have the financial strength to take care of all the damages and enough money left to buy a new car? A sufficient policy would step in to compensate all the losses and take away worries and financial burden for future incidents too?

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 to go to and there is a possibility one of them will be able to come up with acceptable prices.

Most Affordable Car Insurers in Florida

You don’t have to spend a fortune just because average rates are high. Where you live and who quotes 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 here. Regardless, it is really not a smart move to make a choice without checking a few alternatives.

  1. Florida Farm Bureau, $381
  2. GEICO, $605
  3. Travelers, $640

Looking at the cheapest companies above alone you can see how much prices can be reduced by finding the most competitive provider in the market. The average quote difference between the cheapest (Farm Bureau) and the third cheapest (Travelers) is $259. There is a huge price gap between the least and most expensive companies no matter which city you are from and at places it can be as worrisome as six times. Nobody would be pleased to learn that they are spending six times more than they should. And the only way to avoid it is to shop around.

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. Furthermore, lack of education can be an issue, as people may not be motivated enough to spare the money for this cause. Personal priorities are as important as other factors in policy take-ups.