Why is Florida auto insurance so expensive?

What makes Florida auto insurance so expensive is a combination of factors. Bust roads filled with tourists, a lot of high-risk drivers, and Florida's no-fault insurance laws all contribute to the high cost of car insurance in Florida. Average Florida auto insurance rates are $173.50 a month, but rates vary based on where you live and your driving record.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Jan 19, 2022

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Things to Remember

  • The average annual car insurance premium in Florida is $2,082, or $173.50 a month
  • Florida is third most populous state in the country
  • One factor that contributes to Florida car insurance is the high number of high-risk drivers

If you’re a new Florida driver, the average cost of car insurance may catch you off guard. Florida is the third most expensive state for car insurance; the average annual car insurance premium is $2,082. 

It’s only natural to wonder, why is Florida auto insurance so expensive? Factors including dense traffic, policy requirements, and high-risk drivers contribute to high car insurance rates. These together increase the risk of getting into a car accident with an uninsured driver.

However, there are ways you can lower your risk and your car insurance cost. Read this guide for more on what makes Florida car insurance so expensive and how you can save money. Before you start, compare Florida auto insurance quotes for free when you enter your ZIP code above.

The Reasons Why Florida Auto Insurance is so Expensive

There are a lot of factors that affect the overall cost of insurance in Florida. Like most states, average are affected by the big cities, where heavy traffic tends to mean higher rates.

More rural parts of Florida likely have lower rates than the average. That said, Florida does have some of the most expensive insurance rates in the nation. Let’s break down the reasons why that is so, including Florida auto insurance laws.

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The Role of Traffic Density in Florida Auto Insurance Rates

Heavy traffic puts you behind schedule and increases your risk of getting into a car accident. To understand how dense and crowded Florida’s highways can be, here are some quick facts about the Sunshine State:

  • While Florida is only the 22nd largest state in the country, it is the third most populous state, with over 21 million residents.
  • In 2020, 79.8 million people visited Florida. The prior year before the pandemic, 131.4 million non-residents visited friends, family, or one of the state’s many attractions.

With so many people living in and visiting Florida, it’s clear that the roads can get busy. And the more vehicles on the road, the greater each driver’s risk for an accident.

Insurance companies take a driver’s risk profile into account. This is one of the reasons why Florida drivers can expect a higher car insurance rate than their friends in neighboring states.

High-Risk Drivers Drive Increase Florida Auto Insurance Rates

Another factor contributing to Florida car insurance is the high number of high-risk drivers. The chance of a collision in heavy traffic is even higher when a high-risk driver is on the road—and if there are several, the odds go up and up. 

Who is considered a high-risk driver? Generally, one or more of the following apply:

  • Recently received a driver’s license 
  • Charged with multiple speeding tickets
  • Deemed at-fault in at least one car accident
  • Convicted of a DUI 
  • Filed several car insurance claims

While most of these factors are related to a person’s actual driving record, people with poor credit history may also be deemed riskier insurance prospects.

How to Find Insurance Coverage as a High-Risk Driver in Florida

If you’re a high risk-driver, you might pay even more in Florida auto insurance.

Car insurance is mandatory for drivers across the U.S., including Florida. Want to lower your risk so you can receive a better rate? Here are some steps you can take:

  • Improve your credit score
  • Take extra precautions on the road to avoid accidents
  • Enroll in a driving course
  • Buy a car with safety features
  • Never drink and drive

If you don’t have a driving record or recently got your license, insurance companies want to see proof that you’re a safe, reliable driver. Taking driving courses can be enough evidence for your provider to lower your rates.

No-Fault Insurance in Florida Means Higher Rates

Most states in the U. S. require that you have liability insurance. This policy will cover the other driver’s expenses if you’re found to be at fault in an accident.

However, Florida is a no-fault state. As a result, all drivers need Personal Injury Protection insurance to cover their own costs after an accident. 

PIP insurance can pay for your medical bills, car repairs, and other accident-related expenses regardless of who has caused the accident.

Because of that additional requirement, your car insurance cost can go up by as little as $50 or as much as a few hundred. The price will depend on your car, driving history, and other factors. Regardless, this PIP insurance requirement is another reason why Florida car insurance is more expensive than other states.

No-Fault States Outside of Florida

Curious to know other states where PIP coverage is required? No-fault states include the following:

  • Delaware
  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Marland
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania
  • Oregon
  • Utah

Since laws change frequently, it’s always best to check in with your state’s laws to verify their insurance requirements.

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How to Save on Auto Insurance in Florida

Even though car insurance is required to drive in Florida legally, you still have some options to help lower the cost of your car insurance.

  • Use any discounts that your insurance company offers, such as bundling policies
  • Keep your driving record clean
  • Raise your deductible to help lower your auto insurance premium
  • Shop around and compare different insurance rates

A number of factors go into Florida’s expensive insurance rates. Get the best, most affordable deal possible with a little help. 

Why is Florida auto insurance so expensive? The Bottom Line

No-fault laws, packed roads, and high-risk drivers all contribute to Florida’s high cost of car insurance. But, although it’s expensive, car insurance offers peace of mind and financial protection when you’re driving down Florida’s busy highways.

But that doesn’t mean it should cost you an arm and a leg. 

Instead, shop around and compare auto the best insurance rates in Florida to find a deal that offers great insurance coverage at an affordable price. Our free, easy-to-use car insurance comparison tool provides car insurance quotes online. All you have to do is enter your ZIP code to get started. Then, you can shop and compare Florida car insurance quotes from top car insurance company providers. 

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