Why Is Car Insurance So Expensive in Florida?

The average cost of car insurance in Florida is $2,208 per year, making it the fourth-highest compared to other states. Alabama and Georgia, which share a border with Florida, have lower rates — drivers in Georgia pay $1,638 on average, while policies in Alabama cost $1,221 annually.

Several factors contribute to why car insurance rates are so high in Florida. These include environmental factors, such as traffic density and weather risks, and driver profiles. If you live in this state, you have to be proactive in comparing car insurance quotes because Florida auto insurance rates are so expensive.

If you’ve noticed that you spend more for coverage in recent years, you’re not alone. The average cost of car insurance has increased across the country, and auto insurance rates in Florida are following the same pattern. Significant factors contributing to this shift are the state’s busy roads, additional insurance requirements, high healthcare costs, high-risk drivers, uninsured drivers and severe weather risks.

Research has shown that around 79.8 million people visited Florida in 2020. With ports, beaches and premier amusement parks, it’s no surprise that Florida is the third-busiest state in the country.

These visitors result in highways with higher traffic density, which increases auto insurance rates in Florida. From a carrier’s perspective, the closer people drive to other vehicles, the higher the likelihood of accidents.

Like most states, car insurance in Florida is required. To drive in the state, you must carry a policy meeting the state’s minimum liability requirements — property damage limits of at least $10,000 and personal injury protection (PIP) coverage of $10,000. PIP is an extra requirement because Florida is a no-fault state. This insurance covers your expenses in an accident, regardless of who’s at fault.

When you’re involved in an accident, insurance providers use the premiums paid by consumers to help pay for your expenses. The costs covered include medical expenses from injuries sustained by the drivers and their passengers or — in tort states — treatments needed by the other party.

The United States spends approximately $3 trillion on healthcare per year. While healthcare costs in the country are high across the board, Florida residents pay more than average. According to the Commonwealth Fund, the state is one of five in the U.S. where the average resident spends 14% or more of their income on healthcare. Insurance companies charge higher premiums to cover the high cost of medical expenses in the state.

If you’re charged with a DUI, multiple at-fault accidents or another severe driving violation, you’ll be required to purchase SR-22 in many states. Rates for these policies are significantly higher than the average policy. However, Florida extends additional penalties to drivers with a DUI. Instead of an SR-22, these drivers must file an FR-44, which requires that they purchase coverage with 100/300/50 limits, in addition to $10,000 in PIP coverage.

The high rates associated with this additional filing may contribute to why car insurance rates in Florida are so expensive. On average, a driver with a clean record pays $1,379 annually for car insurance. In comparison, a high-risk driver pays $861 more each year.

Although drivers in Florida are legally required to have insurance, 20% don’t carry coverage — much higher than the 12% national uninsured driver rate. Florida ranks sixth of the states with the highest rate of uninsured drivers, meaning the likelihood of being involved in an accident with someone who doesn’t have insurance is higher than in other states.

Although it's not part of the state's minimum insurance requirements, purchasing uninsured motorist insurance is encouraged. This coverage pays for your damages if you're in an accident with an uninsured driver. Because this coverage must be purchased at an additional expense, it increases the state's total insurance costs.

Extreme weather conditions are common causes for auto insurance claims, particularly for drivers whose policies include comprehensive insurance. Several weather hazards commonly experienced in Florida — including tornadoes and hurricanes — can damage your car to the extent that your insurance company might declare it a total loss. In these instances, providers have to pay out large claims. The frequency of these occurrences is a significant part of why car insurance in Florida is so expensive.

Age is one of the key factors providers use to determine car insurance rates. On average, young students and seniors pay more than the average driver for coverage. Florida’s relatively large population of people in both these age groups contributes to high overall insurance costs in the state. According to Census data, the collective population of people aged 18–24 and seniors in Florida is 17.7%, or 1.5% higher than the national average.

Presently, the average driver in Florida pays approximately $2,208 per year or $184 per month for full coverage car insurance. In the last six years, auto insurance rates in Florida have steadily increased — according to MoneyGeek’s rankings, it moved from being the 43rd most-affordable state for coverage to the 46th. On average, rates in the state have increased by $379 since 2015.