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Three Reasons Florida Ranks #2 for Highest Car Insurance Rates

When you discuss auto insurance rates with non-Floridians or look up costs in other U.S. states, one glaring fact becomes apparent: Florida residents pay far more for premiums, up to double compared to other areas. A recent Yahoo! Finance article confirms that Florida is ranked second on the list of most expensive states for car insurance in 2020, with motorists paying around $2,178 every year. There are many underlying factors, including the various types of coverage that are required by law or recommended reasons. 

As frustrating as it may be to pay more for auto insurance, you do reap the benefits in many ways if you are involved in a crash. A Miami car accident attorney can help you maximize compensation for your losses, but you get a basic grasp on why Florida auto insurance is higher.

How Insurers Set Premiums

Rates are based upon multiple factors that are personal to you, such as your driving record, age, and type of car. Still, they are also a product of where you live and drive most often, since these issues may increase the risk of accidents – and the risk of the insurer having to pay out for property damage or bodily injury. 

Top Reasons for High Auto Insurance Rates in Florida

There are three key factors that lead to higher auto insurance premiums as compared to other parts of the US.

  • Insurance Minimum Requirements: Motorists in every state must carry minimum auto coverage, but the requirements for a no-fault state life Florida are different. To register a four-wheeled vehicle in the state, you must carry at least $10,000 in Personal Injury Protection (PIP) to cover an injured victim’s medical expenses, no matter who caused the collision. PIP is an add-on in other states, so motorists who do not carry it pay less.
  • Uninsured and Underinsured Motorists: Florida has the highest number of uninsured motorists, at around 26 percent of all drivers based upon yearly average. While you are not required to carry an uninsured or underinsured motorist policy, many motorists do so because of the risk that their losses will not be covered.
  • Florida’s Traffic Crash Record: The frequency of motor vehicle accidents is also a factor when insurance companies set premiums, as they are working to protect their financial interests. Florida has a large number of young students who driver, and a significant percentage of the population is elderly or aging. Plus, many residents retired to the Sunshine State or move here for other reasons.

A Miami Car Accident Lawyer Can Provide Additional Details

Regardless of the reasons for auto insurance rates in Florida, you will need skilled legal representation if you are ever in the position to seek compensation under your own policy – or another driver’s coverage. Our team at Gerson & Schwartz, PA is happy to help with the legal process, so please contact our firm to speak to an auto crash attorney. We can set up a free case evaluation at our offices in Miami, Fort Lauderdale, or West Palm Beach, FL.

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