Who needs high-risk auto insurance in Florida, and where are the best places to get it?

Florida car insurance laws require everyone who registers a car in the state to carry at least $10,000 of personal injury protection (PIP) and $10,000 of property damage liability (PDL). This is not much coverage. In fact, Florida has the lowest insurance requirements in the U.S. (except for New Hampshire, which requires no insurance).... read full answer

Minimum Coverage Required by Florida Car Insurance Laws

• Personal Injury Protection: $10,000 of coverage is required.
• Property Damage Liability: $10,000 of coverage is required.

Florida Car Insurance Laws for Seasonal Residents

In addition to all cars registered in Florida, Florida’s car insurance laws apply to any car that is driven in the state for more than 90 days in a 12-month period. This means Florida’s large seasonal population must meet Florida’s insurance requirements as well.

Seasonal residents often need to add PIP to their out-of-state policies, since this type of insurance is only required in 12 no-fault states. Residents of the few states with lower mandatory PDL limits also may need additional property damage liability coverage to drive legally in Florida.

How Florida Car Insurance Laws Work

Florida requires its drivers to carry PIP insurance

PIP pays the policyholder’s basic medical expenses, no matter who causes an accident. However, Florida doesn’t require bodily injury liability—the insurance that pays for the other party’s injuries.

Florida’s no-fault law is limited

“Fault” becomes an issue in Florida when injuries are permanent or serious (costing over $10,000 in medical bills and/or lost income). In these cases, victims can sue the at-fault driver. To ensure victims can be paid, the at-fault driver in an accident has to provide proof of “financial responsibility.” The most common proof is bodily injury liability insurance. Drivers also have the option of posting a bond of up to $20,000.

Florida’s PDL requirements are relatively low

Property damage liability insurance pays for damages a driver causes to other people's property in a crash. The damage can be to cars or other property such as fences or buildings. Florida’s PDL requirements are also relatively low. Most states require higher minimum limits, although there are some that require $10,000 like Florida and four that require only $5,000—California, Massachusetts, New Jersey, and Pennsylvania.

Common reasons for high car insurance costs include your driving record, age, coverage options, where you live, the car you drive, your credit history or not taking advantage of discounts. The average car insurance premium has also become more expensive as it increased by more than 50% in the past 10 years.... read full answer

8 Reasons Why Your Car Insurance Is So Expensive

1. You Have a Poor Driving Record

Your driving record is probably the most important factor in determining your car insurance rates. If your record is poor, with accidents and driving violations, and you have a history of claims, your rates will be high. You will also pay more than average if you’re bad with credit, young (especially young and male), or unmarried.

2. Your Vehicle Is Expensive to Insure

Insurance companies like safe, boring cars that nobody wants to steal for joy-riding or parts. If you choose to drive something large, fast, luxurious, statistically unsafe on the road, or popular with thieves, you will pay more.

3. You Live in a High-Risk Location

Where you live has a large impact on your premiums. Some areas of the country have much higher insurance costs than others. A number of factors go into this, such as the history of accidents in the area, population density, the number of uninsured drivers, crime statistics, bad weather patterns, etc. Also, if you live far from work and have a long daily commute, the high annual mileage could raise your rate.

4. You Have High Coverage Amounts

If your coverage limits are high and your deductibles are low, you will be happy if you need to make a claim, but not as happy when you’re paying your premiums. If the insurance company risks having to pay out more in the future, you will have to pay more now.

5. You Are Not Taking Advantage of Discounts

Insurers offer a very wide variety of discounts. Valued customer discounts offer savings for things like loyalty, multiple cars and policies, and paying online. Driver discounts may apply if you are a good driver, good student, belong to a certain profession or organization, are married, or more. Your car may also qualify for a discount if it has equipment that makes it safer to drive or harder to steal. Discounts are available to nearly everyone, and you may qualify for some that you aren’t getting credit for yet.

6. You Are Too Young or Too Old

Teens are statistically more likely to cause car accidents than the average driver, so insurance companies charge them the highest premiums. Drivers who get their license at 16 years old usually see their premiums decrease with every year of experience, however, and age 25 is generally considered a turning point when premiums become considerably lower.

Experienced drivers in their 40s and 50s are often the cheapest to insure. But rates begin to rise again after age 65.

7. You Have a Low Insurance Score

Every major insurance company uses a credit-based insurance score to calculate premiums where allowed by law. Like credit scores, insurance scores are based on credit report information, only they are used to predict a driver’s likelihood of filing a claim. The rationale is that individuals who are careful with their money tend to be careful drivers, too.

However, insurance scores are controversial, so they are banned in Massachusetts, Hawaii, and California. Most other states also have restrictions on their use, which can be found on the state insurance regulator’s website.

8. Costs Increasing Overall

Record-setting natural disasters, more phone-related car accidents, high rates of insurance fraud, and expensive-to-repair car technology have all increased costs for insurance companies. As a result, insurers have been raising their prices to cover their expenses.

From 2010 to 2019, the average cost of car insurance increased by more than 50%. Prices have gone up every year. This steady rise in insurance costs has outstripped other consumer costs. Even skyrocketing hospital costs lag slightly behind car insurance.

Overall Cost Increases from 2010 to 2019

• Car Insurance: 52.2%
• Hospital Services: 49.1%
• Cost of Living: 17.2%
• Physician’s Fees: 15.7%

You can’t reverse this industry-wide inflation. But if you want to lower your own insurance costs, address as many of your personal factors as you can. Then get quotes from multiple insurance companies and compare.

Check out WalletHub's full guide on the factors that affect car insurance rates for more information.

Car insurance is likely to cost more than $5,500 annually for a new driver who is 17 years old to get a stand-alone policy. On the other hand, auto insurance will cost about $2,750 extra per year when adding a 17-year-old new driver to a parent’s policy. But insurance costs for new drivers vary widely.... read full answer

Age is a major factor in how much insurance costs for a new driver. Not everyone gets their first license at 16 or 17 years old. A new driver could be 25 or 40 or even 60 years old. Insurance companies set different prices for insuring a newly licensed teenager and someone getting their driver’s license later in life. They also factor in gender, state of residence and coverage amounts. Insuring any new driver, however, is more expensive than covering an experienced driver with good driving and insurance records.

Statistics show that new drivers tend to be high-risk drivers who are more likely to get into accidents and file claims. That’s why insurance companies charge more to insure them. You can’t fight statistics, but sometimes, you can make them work for you in order to get the best possible price. A look at car insurance statistics yields the following findings.

• Adding a teen to a parent’s policy is cheaper. If you are a teen driver living at home or in a dorm, ask your parents to add you to their policy. It will be about half as costly as having your own policy.

• Luxury cars are expensive to repair, and sports cars are likely to be driven too fast. Driving a cheaper, practical car with good safety and anti-theft features will lower your rates.

• Students with good grades are better drivers. Insurance companies give discounts to students with a B average or better.

• Driving courses improve drivers’ skills. Many insurance companies offer discounts for attending driver’s ed or online defensive driving schools.

• Teachers, physicians, police officers, and other well-educated professionals file fewer claims. Some insurance companies offer discounts based on occupation.

If you are a new driver of any age, it’s worthwhile to comparison shop rates and discounts carefully. The cheapest way to do this is by getting free online quotes from multiple auto insurance companies.