Florida car insurance is so expensive mainly because of Florida's dense population and large numbers of high-risk drivers. While Florida ranks 22nd in size among the U.S. states, it is third in population behind only California and New York. This creates busy roadways. To make things worse, many drivers on Florida roads are high-risk. The state is home to a large population of elderly drivers. It is also host to 128 million tourists annually, trying to find their way around the state, plus young drivers attending Florida’s many colleges and universities. These factors lead to the more than 400,000 car accidents recorded in Florida each year, according to the Florida Highway Safety and Motor Vehicles Department, for an average of 1,100 crashes per day.
Other factors affecting the cost of car insurance in Florida include uninsured motorists and expensive medical coverage. Florida has more uninsured motorists than any other state. Approximately 27% of its drivers are on the road without any kind of policy. The claims insurers must pay out when an uninsured driver causes an accident raise the premiums for everyone who has insurance. Florida also is one of only 15 states that require drivers to carry Personal Injury Protection, or PIP, insurance. PIP pays for injuries you sustain in an accident regardless of who was at-fault.
In addition, while Florida is known among tourists for its beautiful weather, it’s known among insurance companies for its hurricanes. Hurricanes destroy cars as well as homes, and insurers can pay out billions in damages for just one storm. Florida auto insurance companies make up for these costly losses with higher rates.
Florida has a perfect storm of reasons for being one of the most expensive states for insurance. However, not all insurers here are equally expensive. If you are a Floridian, try getting quotes from some of the companies known for having the cheapest Florida auto insurance rates, including Progressive, GEICO, Liberty Mutual and State Farm.
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