Why Is Car Insurance So Expensive In Florida? (5 Facts)

I remember the first time I ever searched for auto insurance. It didn’t take me long to realize that insurance rates in Fort Lauderdale, FL were not as cheap as I thought they would be. Are you wondering why is car insurance so expensive in Florida?

There are so many factors that will help us to get to the bottom of this answer.  If you are paying too much for car insurance, then it is important for you to compare rates today to lower your insurance premiums. I guarantee that you will be able to save anywhere from 5-30%.



Accident statistics 

Florida is one of the most dangerous states for car insurance. NWI ranked Florida as the #17 most dangerous state for auto accidents. For two years in a row, Florida has been ranked as the states with the worst drivers by Smartasset. It was reported that in 2015 Florida had the 9th highest fatalities rate per 100 million vehicle miles driven. In 2015 there were over 600 motorcyclist and over 600 pedestrian facilities making it one of the deadliest states. In 2013 there were 2,407 deaths reported from car accidents. Slightly over 400 of those deaths were people killed in accidents involving a pickup or SUV.

In 2021, it was reported that Florida had 387,900 total car accidents, 161,218 injury crashes, and over 240,000 injuries. There were over 2700 crashes involving a fatality and over 42,000 commercial vehicle crashes. From 2016 to 2021 there was almost 8000 less auto accidents. Although the accident rate in Florida seems to be declining, Florida is still high in auto accidents. In 2021 every month there was around 33,000 auto accidents. Those more likely to be in an auto accident were those who were 25 to 34 years old. The worst time for accidents in Florida was from 4PM to 5PM. From the reports, we notice a lot of loses in Florida, which means higher insurance premiums.



States that Require PIP Insurance Coverage

15 states in the United States use a no-fault system and require personal injury protection insurance coverage. Florida is one of those states. The other 14 states include Delaware, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, Texas, and Utah. Florida PIP covers the cost of medical, loss of wages, and more.

The cost of PIP will vary for each driver. Things that are taken into consideration is your driving history, vehicle model and year, age, credit, etc. Because this coverage is mandatory in Florida, you will be paying slightly more than other states. PIP might cost you $5 to $20 extra a month on your insurance policy.



High crimes areas will increase insurance rates. 

Florida is among the worst states for car theft in 2021, it was reported that Jacksonville had over 3000 motor vehicle thefts. The second worst Florida city for car thefts was Miami with slightly under 2000. Orlando was the third worst Florida city for car thefts with 1240 motor vehicle thefts. Many people don’t know that where you live affects your car insurance rates. If your zip code shows that you live in a high crime area, your rate might be a little higher because there is a higher chance of a crime being involved with your vehicle. Insurance carriers are preparing themselves just in case your vehicle gets broken into, your car gets stolen, etc. Always remember that vandalism and other crimes play a role in insurance premiums. Not only does crime affect your rates, but if you have a vehicle that is among the top stolen cars, then you might pay slightly more.



Population Density

As I said before, where you live matters. If you live in a state with high congestion there will obviously be a greater chance for auto accidents. Florida is the third most populated state in the U.S. Miami was ranked 5th for the most congested city in the U.S. Areas that are more densely populated are at a higher risk for auto accidents, crime, auto related deaths, etc. All of this results in a higher premium.



Overall reckless behavior on the road

Florida DUIs and tickets statistics also help in causing higher insurance rates. Although DUI’s and tickets in Florida are not as bad as other states, they can still affect rates. Hillsborough County had almost 4500 DUI’s. Pinellas County had 3,155 DUI’s. Broward County had 3,104 DUI’s. If DUI’s and tickets were bad enough, Florida was ranked as the second-worst state for distracted driving. With texting and phone related accidents on the rise, we will also see a rise in insurance rates.

In 2015 it was reported that Florida had the most uninsured drivers with 26.7%. The 2nd highest state after Florida was Mississippi with 23.7%. After Mississippi was New Mexico with 20.8%, Michigan with 20.3%, and Tennessee with 20.0%.

All of the above statistics will increase rates. Insurance carriers will always take a look at the trend. Florida is a high tourist state with many young drivers and senior drivers who have bad driving habits.



Most and least expensive cities for auto insurance. 


The cheapest city in Florida for car insurance is Mayo, FL, which is in Lafayette county. Expect to pay less if you live in nearby cities such as Day, FL.

Most and least expensive cities for auto insurance. 

Most expensive 

The most expensive city for car insurance in Florida is Miami, FL. The only cities in the U.S. that cost more for auto insurance is Detroit, Michigan and New Orleans, Louisiana. The Miami-Dade County area is very expensive compared to other counties in Florida. If you live in cities such as Hialeah, Opa-Locka, Miami, Miami Gardens, and Homestead expect to pay more for insurance.



Two popular insurance carriers in Florida are GEICO and State Farm auto insurance. There is no definitive answer when trying to find the right fit for you. I’ve dealt with many awesome local insurance agents throughout the U.S. You must compare quotes to see which carrier gives you the best auto insurance rates in your area.



Minimum coverage car insurance Florida

Auto insurance is a requirement in Florida. The lowest amount of coverage that you can have is 10,000 personal injury protection and $10,000 property damage liability. Medical payments coverage is not required in the state of Florida. Bodily Injury Liability coverage is only required for some people. If you have been convicted of a DUI, then you must have Bodily Injury Liability. Other insurance coverages that are not required in the state of Florida are Uninsured/underinsured motorist coverage and collision/comprehensive coverage.



Bottom line  

Auto insurance in Florida is undeniable high because of several reasons. It is high because of high accident statistics, reckless driving behaviors, high crimes rates, PIP coverage, and more. If you live in the state of Florida and you want to cut the monthly cost of auto insurance, then take the time to compare rates now, which can be done in under 2 months.