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Why are car insurance rates so high in Florida?

If you are new to the state of Florida and are now looking at car insurance rates, you probably are saying "Wow those rates are high!" Well, it's not just you snowbirds who noticed the drastic change in the numbers, the Floridians are noticing it too. In fact, the Insurance Business Magazine reported that the average annual auto insurance premium is $2,560 – which is 52% higher than the national average rate. So now the question is, why? Well, let's have our accident attorneys break it down for you.

insurance rates

Why Florida auto insurance rates may be higher...

While people may question if it is the insurance companies to blame for the sky-rocketed rates, that is not even close to the truth. So many factors come into play when it comes to determining what auto insurance premiums will be. Here are just a few to start:


The Florida Weather:

While Florida is referred to as the sunshine state, we do experience a lot of extreme weather down here. Whether it be hurricanes, thunderstorms, or sometimes even horrible floods. Take last year's horrible flood in the South Florida area as an example, this was a record-breaking downpour that left numerous individuals with no way of getting home. Or last year's Hurricane Ian which destroyed so many individuals' homes and left them without power or shelter for days. The weather here, although mostly beautiful, is somewhat unpredictable. This means there is a higher risk of vehicles getting damaged or crashes occurring due to these insane weather conditions.


The Un-insured:

Something our accident attorneys always speak about is uninsured motorists, it is one of the main reasons they always recommend individuals get UM coverage when purchasing their car insurance. In fact, according to a study conducted by the Insurance Information Institute (III) in 2022 every 1 in 7 drivers do not have insurance, which means about 14% of drivers. This makes the claims process when it comes to a personal injury case extremely difficult which is why we suggest having an expert accident attorney on your side.


A Few Other Things to consider...

As stated previously, numerous factors contribute to your auto insurance premium rates. Upon doing some further research these factors could also contribute to your rates being high:

  • Having bad credit

  • Being male

  • Living in an urban area or somewhere with high crime rates

  • The type of car you have

If these reasons are not enough as to why your insurance premiums maybe high then you can also check out our previous post about when Florida was the #2 state for high premiums. This year we have already climbed the ladder to #1 surpassing all other states.


Do you have to have auto insurance coverage?

The answer is yes but with a twist. Florida, like most states, mandates a certain level of auto insurance coverage to legally operate a vehicle on its roads. However, unlike many other states, Florida's insurance requirements have a unique feature known as "no-fault" insurance.


Under the no-fault system, drivers are required to carry Personal Injury Protection (PIP) coverage as part of their auto insurance policy. This coverage helps pay for medical expenses, lost wages, and other related costs regardless of who was at fault in an accident.


Additionally, Florida law mandates Property Damage Liability (PDL) coverage, which helps cover damages you may cause to someone else's property in an accident. The minimum required PDL coverage in Florida is also $10,000.


These mandatory coverages are designed to provide some level of financial protection for both drivers and passengers involved in accidents. However, it's essential to note that PIP and PDL coverage only cover certain aspects of an accident, and additional coverage options such as Bodily Injury Liability, Uninsured/Underinsured Motorist, and Collision coverage are not mandated but highly recommended for comprehensive protection.


Why should the auto insurance premiums rising in Florida concern drivers?

Beyond the expense of auto insurance now there are plenty of other reasons the numbers are alarming. While the immediate hit to the wallet is undeniably concerning for drivers, the ripple effects of this uptick in costs extend far beyond mere financial strain.


These rates not only show the risks associated with natural disasters and the overall population but also the amount of protection that individuals can have. As rates soar ever higher, the prospect of securing comprehensive auto insurance becomes increasingly prohibitive for large swathes of the population. Possibly leading to less coverage and more accidents where negligence wins.


That is why it is extremely important to have a great accident attorney on your side who can go through your options with you and ensure you get the compensation you deserve.

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