.Quite possibly, the only thing more scandalous than ‘Florida man’ headlines are car insurance rates in Florida! The state routinely ranks among the top five states for the highest auto insurance rates. Florida has the third-highest annual car insurance bill in the nation, behind only Michigan and Louisiana. Why is Florida car insurance so expensive, though? Here are a few of the factors that cause Florida car insurance rates to go so high.
What causes insurance rates to go up?
Too many uninsured drivers
Florida car insurance is so costly. It is that the state ranks at the top when it comes to the number of uninsured drivers. Approximately 26.7% of Florida drivers do not have insurance. This figure has been cited as one of the primary causes of high insurance costs in Florida since 2009. Insurance providers increase the rate of car insurance premiums in states with a high proportion of uninsured motorists. If you are in a traffic accident involving an uninsured driver, the insurance provider will pay. The damages and losses go under your policy’s uninsured motorist coverage. The claims insurers pay for uninsured drivers result in higher premiums.
Too many high-risk drivers
There are many elderly drivers in Florida. As well as tourists who are unfamiliar with the roads and college students attending universities. These drivers are probable to be more high-risk, and therefore more likely to cause or lead to an accident. According to the Florida Highway Safety and Motor Vehicles Department, these high-risk drivers lead to more than 400,000 car accidents per year. The considerable number of high-risk drivers also leads to high Florida car insurance rates.
Busy roads
Florida’s highways are the third busiest in the country, after California and New York. Accidents are more likely when there is more traffic. This also contributes to the high cost of Florida car insurance.
Extreme weather conditions
Florida is known as the Sunshine State, but it is also known for its extreme weather, including severe storms and hurricanes. This hazardous weather has the potential to cause significant property loss. Severe thunderstorms, hurricanes, and flooding incidents cause property damage to automobiles, which insurance companies must cover. Residents living by the ocean, rivers, or in low-lying or other flood-prone areas are particularly vulnerable.
Too many false claims
Unfortunately, some parts of Florida are notorious for having a high prevalence of false claims and a high number of claims involving legal representation. The high number of claims and legal fees increase the cost of doing business there, resulting in higher Florida car insurance rates.
How much is car insurance in Florida per month?
The average cost of car insurance in Florida is $175 per month, for minimum liability.
Florida’s no-fault insurance requirement
Personal Injury Protection (PIP) insurance is required by law for Florida drivers. This coverage, also known as ‘no-fault’ coverage, provides for medical bills for you and your passengers in the event of a car accident, notwithstanding who is at fault. This ‘no fault’ coverage raises Florida car insurance prices by about 20 percent
Please note that at the time of publishing this blog, Florida drivers are one step closer to not needing ‘no fault’ auto insurance after lawmakers approved repealing the decades-old scheme and its mandate that drivers carry personal-injury protection policies.
How to get affordable car insurance in Florida
Despite the high auto insurance rates in Florida, there are ways to save money on car insurance. Keep these in mind when looking for car insurance so that you can take advantage of the discounts that various firms have. Anti-theft devices on a vehicle, getting multiple cars on your policy, taking a defensive driving course, and establishing yourself as a safe driver with a clean record are all standard discounts. You’ll also need to pay less if you are a senior citizen, a military person/veteran, or a good student, as decided by the insurance provider. Your insurance rates will be affected by your credit score as well. You can further decrease your Florida car insurance costs by looking around for the right deal and inquiring about all available discounts at least once every year. Sites and apps like Way.com make this straightforward and easy.
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