Why is Car Insurance So Expensive in Florida?

Why is Car Insurance So Expensive in Florida?

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It may seem like residents of any given state are being unfairly targeted with higher annual premiums. However, the economics of insurance is a complex matter and several factors influence the auto insurance rates of any given state, Florida included.

Below we’ll be taking a look at why car insurance is so expensive in Florida.

Why Car Insurance in Florida is Expensive

In general, all 50 states adhere to similar rules and criteria that determine the average auto insurance rates. However, it is important to note that there are many exceptions or special regulations that may apply on a case by case basis. Florida happens to be one of those states.

For example, only 15 of the 50 states of America have a law that makes the acquisition of PIP insurance (which stands for Personal Injury Protection) mandatory. Normally, car owners who are insured only have to register for liability insurance, while extra coverage plans that include damage from the weather or other drivers is normally optional.

But for better or for worse, Florida is one of the 15 states where PIP insurance is mandated by state law. This makes it illegal to drive without PIP insurance, which of course means that mandatory insurance becomes more expensive than average.

But PIP can’t be the whole story because Florida still has higher annual premium rates than most of the other 15 states on the list. Not to mention the fact that PIP isn’t so expensive in the first place relative to other additional coverage add-ons. It’s usually anywhere from an extra $5 to $50 per month.

So we must ask ourselves again: why is car insurance so expensive in Florida? The rest of the reasons are more typical, though this probably doesn’t make it any better for residents of the state.

Car Accidents

When you think about things that raise insurance prices, for an individual or groups of people, the first thing that usually comes to mind is car accidents. And guess what – Florida has more automobile accidents than many other regions of the United States.

Florida has consistently topped lists of states that have the most accidents and dangerous driving. In a given year, Florida can have hundreds of thousands of automobile accidents and injuries, and thousands of auto related deaths. In 2017 there were nearly 400,000 automobile accidents or crashes.

While it has been observed that the number of automobile accidents in Florida has been gradually declining, their rates are still higher than average. As a result, this still contributes to why car insurance is so expensive in Florida.

Population Density and DUIs

Another primary reason for Florida’s high insurance rates is population density. This makes sense has more car accidents tend to happen in high traffic cities. The more closely together cars are to each other, the more likely a crash is to occur.

This is a sad and unfortunate reality that residents of Florida have to deal with as Florida is the 3rd most densely populated state in America. This is especially unlucky to residents of Miami which is one of the most densely populated cities in the country.

As you probably know by now, high risk means high insurance premiums. As long as Florida and many of its major cities remains a highly populated region then it will remain a high risk area for car accidents. This is the price that people pay for living in crowded and potentially dangerous cities, literally and figuratively.

While driving under the influence doesn’t always result in a car crash, it is still a crime. The more often a city or state has drunk drivers getting pulled over and ticketed, the more the insurance premium rates will climb. In recent years, Florida has been one of the top ranked states for drunk driving incidents, with or without a subsequent car accident.

What Can Be Done About My High Insurance Rates?

So in summary, mandatory PIP insurance, high accident rates, several DUIs and a dense population are all factors that are heavily weighed when it comes to policy rates in Florida.

It can be difficult to manage the stress and extra financial responsibilities of dealing with high car insurance rates. Fortunately, there are some things that can help manage these duties better. Driving more responsibly and carefully is the first thing you can – and should – do, so that you do not contribute to Florida’s already high risk situation. You can also consult with other insurance firms and acquire quotes to see if you can reduce your monthly bills, even if only by a little.