Florida home insurance increases aren't the end. Car insurance rates double national average
Floridians still reeling over the staggering increase in home insurance premiums might want to sit down before opening their car insurance renewals this year.
A mid-year report from Insurify estimates that Florida drivers are paying $163 a month for liability coverage and $239 a month for full coverage, which is about 44% more for car insurance than the national average.
The site, which compares car and home insurance prices, ranked Florida No. 4 on a list of states with the most expensive insurance rates, clocking in at an average of $2,419 a year. Michigan, New York and Nevada claimed the top three spots.
Florida was also ranked among 10 states where car insurance rates are rising the fastest — noting that Florida car insurance premiums increased 17% in the first six months of 2023 and are 25% higher than last year.
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Insurify analyzed more than 40 million real-time auto insurance rates from its partners across the U.S. to compile the data, which includes analysis and details on drivers’ vehicles, driving records and demographic information. The data represents averages from the collected data.
Car insurance data from Bankrate, a consumer financial services company, largely backs up these claims, showing that Florida drivers pay an annual average of $3,183 for full coverage and $1,128 for minimum coverage, much higher than the national averages of $2,014 for full coverage and $622 for minimum coverage.
Bankrate uses a specific driver profile and full coverage limits in its methodology. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
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Why do car insurance rates go up?
Nailing down why car insurance rates go up isn’t a straightforward process. Bankrate explains that there are more than a dozen rating factors car insurance companies use to determine premiums, and which city you live in is one of the most important.
In Florida, there is a 27% price difference between the average annual full coverage premium in the cheapest city (Palm Coast) and the most expensive (Miami). Premiums in La Crosse are around $2,753 whereas they are $3,483 in Miami.
The reason rates can differ so drastically has to do with the frequency of claims, health care costs, the likelihood of weather damage and the cost of vehicle repairs.
Why car insurance is more expensive in Florida
Bankrate says that part of the reason Florida’s car insurance rates are so high is that it is the third most dangerous state to drive in. It also noted that insurance fraud is a common concern so prevalent that the Senate considered repealing no-fault coverage during the 2023 legislative session.
WalletHub.com added that the number of uninsured drivers in the state, increasing health care costs and Florida experiencing more severe weather all contributed to rising premiums.
This article originally appeared on Pensacola News Journal: Florida car insurance rates double the national average in 2023
