Florida, at the moment, is fourth on the list of states with high car insurance rates. The average annual cost for auto coverage in the Sunshine State is around $2,208. It’s something that is especially noticeable since the car insurance rates of Florida’s neighbors of Georgia and Alabama seem significantly lower. In fact, Alabama’s annual average for car insurance is around $1,221 –that’s nearly two times less than that of Florida. This also factors in the 25% increase in premiums Florida has seen since 2015. So, the question is, why are Florida’s car insurance rates so noticeably steep, and how did they get that way?
Florida Car Insurance Rates at First Glance
There are several reasons why car insurance rates for some areas are higher than others. They can be circumstantial, like a zip code with a high crime rate, or something more personal like a spotty driving record. But for a moment, let’s ignore all these what-ifs and look at car insurance in Florida down to its simplest and see why it costs as much as it does. Right off the bat, Florida is known for having more car insurance requirements than most states. While general liability coverage for bodily injuries and property damage must be bought, so should uninsured motorist and personal injury protection (PIP) coverage. Naturally, buying more means that you have to spend more on regular car insurance. At the same time, there are several other specific factors driving up Florida’s car insurance rates.
Traffic Patterns in Florida
Florida residents aren’t the only ones using the roads. As one of the main tourist destinations in the United States, Florida sees nearly 80 million people use their roads annually to visit places like Busch Gardens –Iron Gwazi just opened this year. It’s been reported that Florida is actually the third busiest state in the country based on their tourism, so they sure know how to have a good time. But it’s those good times that cause traffic density in some areas. It’s a general practice when purchasing car insurance policies for providers to assess large amounts of traffic as a risk. After all, more drivers mean more chances of accidents occurring.
Drivers’ Ages in Florida
Florida is known for having about 1.6% more senior and younger drivers than the whole country. It’s a great destination for young people on a getaway and a place for elderly people to retire to. Age is one of many things that car insurance providers pay extra attention to as it can tell them a lot about the driver. Age can suggest an experience or lack of and be used to assess risk. It’s no mystery that younger drivers below the age of 25 pay the highest for car insurance. The rates do eventually go down, but they increase again when you reach 65. With several of these drivers around Florida, auto insurance has to compensate with higher rates.
Weather Hazards in Florida
Tropical climates are fierce when it comes to storms and everyone in Florida, along with the southern US, knows it. Hurricanes and even tornadoes are weather hazards that can leave cars damaged or worse when they are parked. While people with full comprehensive coverage would be insured, they would still be in need of a large claim that their insurance provider must payout. Their response to these looming hazards are premiums that suit their payouts.
Drivers With no Car Insurance in Florida
Florida ranks sixth on the list of states with the most drivers without car insurance. It’s easy to see why with nearly 80 million annual drivers, more than a handful will violate the law and drive without car insurance. This kind of makes uninsured motorist coverage a necessity even though it’s not set in stone as a hard requirement. As previously mentioned, more coverage for your policy means more premiums.