Why Is Car Insurance So Expensive in Florida?

Florida car insurance rates are the most expensive in the nation as of June 2025. Perhaps you've been asking, "Why is auto insurance so expensive in Florida?" Car insurance premiums in the Sunshine State are costly for several reasons, including the high volume of uninsured drivers and high-risk drivers, whether full-time residents or just visitors, as well as the state's increased risk of various natural disasters.

The good news is that a local Florida independent insurance agent can help you find the cheapest car insurance available. They'll help you get the auto insurance coverage you need at a reasonable rate. But first, here's a guide to why Florida car insurance is so expensive. 

Why Are Car Insurance Rates So High in Florida?

The current national average cost of car insurance is $2,680 per year for a full coverage policy. Is car insurance more expensive in Florida? The answer is yes, and by quite a bit. Florida drivers pay much more than this, at a staggering average of $4,151 per year for their auto insurance premiums. Florida's auto insurance premiums are the second-highest in the nation currently.

Understandably, you might be wondering, "Why is auto insurance so expensive in Florida?" A few key factors impact car insurance rates for drivers in Florida. These include the following:

• A large volume of uninsured drivers
• A large volume of high-risk drivers
• Lots of traffic and busy roads
• A high risk of accidents
• An increased risk of natural disasters

Florida experiences severe weather, such as hurricanes and floods, more frequently than many other states. This results in auto insurance companies having to pay out claims for damaged vehicles that were directly hit by severe weather or due to accidents that occurred during storms, causing high car insurance premiums for Floridians.

Unfortunately, the state also has a high rate of accidents compared to many others, at an average of more than 400,000 per year. This can largely be attributed to high-risk drivers, such as the elderly, tourists, and students. 

Florida is home to many retirees and students and is a huge draw for tourists annually. Elderly drivers and young drivers are known to contribute to a high rate of accidents. Unfortunately, a high percentage of accidents are also caused by tourists visiting from other states and countries who are unfamiliar with Florida roads and driving laws. 

The large percentage of uninsured drivers in the state means car insurance companies also have to pay out a high volume of uninsured motorist claims. These factors combined have caused Florida's auto insurance rates to skyrocket over the years. 

Is Florida the Most Expensive State for Car Insurance?

As of June 2025 Florida is the most expensive state for full coverage auto insurance.  One other state has nearly as high car insurance premiums:

• New York has an average annual car insurance rate of $4,021.

The high cost of car insurance in New York is largely due to many of the same factors that cause coverage to be so expensive in Florida. A large volume of uninsured motorists, severe weather risks, and high-risk drivers all impact New York as well as Florida.

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How to Reduce Car Insurance Rates in Florida

Wondering how to save on car insurance in Florida? You're certainly not alone. Fortunately, you have several options to save money on Florida car insurance, including:

1. Bundling your coverage: Many car insurance companies allow drivers to bundle more than one policy, such as homeowners insurance and auto insurance, to save money on the premiums of each.
2. Maintaining a clean driving record: The more claims you file, the more expensive your car insurance will be. Reduce your risk of accidents and more expensive car insurance rates by practicing safe driving behaviors on the road and keeping your record clean.
3. Finding car insurance discounts: Ask your insurance carrier or independent insurance agent about any car insurance discounts you're eligible for. You might be able to save money on your premiums just by belonging to an organization or owning a home.
4. Improving your credit score: In many cases, having an excellent credit score can lead to lower car insurance rates. To reduce your car insurance costs, try improving your credit score and then follow up with your carrier to see if you've earned a lower rate.
5. Getting a usage-based policy: Some insurance companies offer usage-based car insurance policies for customers who don't drive frequently. If you only rarely use a car, look into usage-based car insurance to save money.
6. Increasing your deductible: If you select a car insurance policy with a high deductible, you'll have a lower monthly or annual premium rate. However, keep in mind that you're responsible for paying your deductible amount out-of-pocket each time you file a claim.

An independent insurance agent can help you save as much money as possible on your Florida car insurance.

Is Florida a No-Fault Car Insurance State?

Yes, Florida is considered a "no-fault" car insurance state. In no-fault states, drivers are equipped with personal injury protection insurance (PIP), which is responsible for paying for their medical bills and other expenses after an accident, regardless of fault. PIP coverage can apply to the driver and their passengers or anyone listed on the policy up to the policy's coverage limits.

Who Has the Cheapest Car Insurance in Florida?

Not all car insurance companies in Florida have sky-high premium rates. If you know where to look, you can find coverage for much cheaper than competitors offer. These insurers offer some of the most affordable auto insurance coverage in the state.


           

Florida Car Insurance Company	Overall Carrier Star Rating
Nationwide	5 Stars
Travelers	5 Stars
Progressive	5 Stars
USAA	4.5 Stars
Mercury	4.5 Stars
National General	3.5 Stars
Florida Farm Bureau	3.5 Stars
United Automobile	3.5 Stars

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An Independent Insurance Agent Can Help You Get Cheap Car Insurance in Florida

Car insurance rates in Florida are expensive, but finding affordable coverage isn't hopeless when you enlist the help of a local independent insurance agent. These agents have access to multiple car insurance companies in Florida, so they're free to shop and compare policies and rates for you. Your agent will help you find an affordable policy that provides the coverage you need.