When it comes to auto insurance we look for the average or low prices with it. But there are a few states which have expensive car insurance & Florida is one of them. However, why is Florida car insurance so expensive? There can be many reasons behind it and many of them might surprise you. Let us look at why is Florida Car Insurance so Expensive?
Why is Florida Car Insurance so Expensive?
If we look at the numbers then the insurance costs in Florida have increased steadily since 2009. The Sunshine State ranks third in the United States for auto insurance rates, an average of $2,219 annually. On the other hand the most expensive states for average annual auto insurance are Michigan, $2,2611 and Louisiana, $2,298. The average cost of Florida’s auto insurance premiums is 52% higher than any other national average. As per this comparison, New York’s average rate is $1,789 and California’s is $1,846.
There are more than a dozen insurance companies operating in Florida that offer auto insurance policies, but companies like State Farm, Geico, Travelers, USAA offer the State’s lowest rates. There are many factors on which the cost of annual premiums depends like driver live, the number of uninsured drivers, credit scores, driving records and insurance claims filed.
Uninsured & High Risk Drivers Boost Auto Insurance Rates
Yes, you heard it right the high risk drivers boost the auto insurance rates. The Florida Department of Highway Safety & Motor requires all drivers to have minimum level of car insurance coverage. And it is one of the reasons why Florida has high insurance rates. Another reason is because Florida ranks number one nationally in the category of uninsured drivers. As per the reports around 27% of its drivers operate vehicles without any insurance. There’s no temporary license provision for work or school.
It is common that states with high percentages of uninsured motorists see insurance companies raise the cost of insurance premiums. Another reason is Florida has a sizeable high-risk driver population of elderly drivers. All these are the reasons why the auto insurance rates are higher in Florida.
Bad Weather Increases Car Insurance Rates
Florida has a beautiful weather year around, but there is also no guarantee for any hurricane or violent storm or flood that can damage thousands of vehicles in one go. Insurance companies pay claims for repairing those vehicles or totalling them and paying their cash value. Florida auto insurance companies also make up losses by setting higher rates that take into account risk factors that are related to weather. When the home owners near the coast and waterways or low-lying terrain where flooding may occur should expect to pay more premiums insurance as they are prone to bad weather.
Driving History & Credit Score Matter
A good driving history helps you avoid paying higher auto insurance. So the drivers that are under 25 years old should expect to pay more. Married couples often pay less as they have a proper driving history and credit score. So, you should pay your bills on time. The insurers look at the length of your credit history and types of credit you have, including loans and credit cards. So, if you want a low or cheap good insurance then you must keep a clean driving record and good credit.
Companies Offer Cheap Car Insurance in Florida
When you look for cheap car insurance in Florida, then there are companies like Florida Farm Bureau, Travelers, Geico & State Farm. Such companies offered drivers coverage at an average annual cost of $500, a savings of $569 annually. USA offers reasonable insurance but only to military families.
Now you know why is Florida car insurance so expensive? You also know things within your control and the cheapest car insurance which are available. We suggest you maintain a good credit and a clean driving record and other several car insurance quotes to get your required discount.