One of the main reasons car insurance is so expensive in South Florida is because more than 20% of Florida drivers don’t have car insurance.
The annual insurance rate in Florida averages about $2,000 per year, which is 2x higher than the national average of car insurance rates. Florida is the fifth most expensive state to buy car insurance in the nation.
Uninsured drivers increase the cost of insurance for people who do buy insurance to protect themselves and their cars. This makes it very important to have uninsured motorist coverage on your policy.
Other factors contributing to high car insurance rates in Florida include traffic, severe weather risks, high-risk drivers, and increased healthcare costs, according to Money Geek.
Florida is the 3rd busiest state in the U.S., which results in dense traffic. Car insurance carriers typically increase their insurance premiums based on traffic because the more people drive and the closer they drive to other vehicles, the higher the likelihood of a car accident.
High-risk drivers include inexperienced drivers, people with multiple speeding tickets, accidents, or who have had a DUI arrest or conviction or lapses in car insurance coverage.
Florida requires additional penalties for DUI and high-risk drivers, making their rates far more expensive. The higher fees for high-risk drivers may also contribute to many car insurance rates in Florida being so expensive, according to Money Geek.
Florida makes up for about 8% of the nation’s alcohol-impaired driving deaths, according to Responsibility.org. Florida is also the most dangerous state for pedestrians, with the most car and pedestrian accidents each year.
With more than 20% of drivers in Florida uninsured, it makes car insurance premiums for those who do buy insurance more expensive. On average, about 12% of drivers in the U.S. are uninsured.
With such a high uninsured rate, it is more likely that you could be involved in an accident with someone who doesn’t have car insurance. If you get in a car accident, there is at least a 1 in 5 chance that the other car involved in the accident doesn’t have car insurance.
This is why it is so important to get uninsured motorist coverage in Florida. Essentially, uninsured motorist coverage, or UM, will pay for your damages if you’re in an accident with an uninsured OR underinsured driver. Because uninsured motorist coverage is an extra cost, this is another factor that increases the state’s total average insurance premium rate.
Both young people and seniors typically have to pay more in car insurance premiums. As a state, Florida has a large population of young drivers and elderly drivers. This contributes to higher than average insurance premiums for Floridians.
Severe weather hazards also drive up car insurance policies. With tornados and hurricanes very common in Florida, insurance companies know there is a chance that your car could get totaled in a severe weather event.
Because severe weather conditions are very common in Florida, insurance companies raise their premiums because they expect to pay out more, larger claims in the state due to weather events alone.
When it comes to finding a car insurance premium, be sure to get a variety of quotes from different carriers so that you can compare your options. Sometimes, you might be able to negotiate with a car insurance provider, especially if you can let them know another company has offered you a cheaper or better rate.
We’ve already mentioned it, but it’s so important it’s worth mentioning again: Be sure to get uninsured motorist coverage. Uninsured motorist coverage helps ensure that you’re taken care of, no matter the insurance coverage situation of someone else involved in an accident.
If you are injured in a Florida Car Accident, UM (Uninsured Motorist and Underinsured Motorist) coverage can help guarantee that your medical costs are taken care of regardless of if the person who caused the accident has car insurance or not.
Please contact us online or call our Coral Springs office directly at 954-755-7803 to schedule your free consultation. We proudly serve Florida residents, including all of Coral Springs, Parkland, Weston, Fort Lauderdale, Boca Raton, Miami-Dade County, Broward County, Palm Beach County, and all points in between.