A recent analysis ranks Florida as the most expensive state in the country for car insurance.
The national average rate for full auto insurance is $1,682 per year in 2022. With an average premium of $2,560 per year or $213 per month, Florida ranks as the most expensive state in the nation for auto insurance, according to a recent analysis by insure.com. . This is 23 percent more than in 2021, making the Sunny State about 52 percent more expensive than the national average. The average insurance premium in Ohio is $1,023 per year, making the Buckeye state the cheapest for car insurance.
Several factors such as driving experience, gender, age, location, credit score, and vehicle type will also affect auto insurance rates. However, drivers in no-fault states such as Florida and Michigan traditionally pay more for auto insurance than drivers in other states.
Florida’s no-fault law means that in the event of a car accident, both parties turn to their auto insurance policies to make claims, no matter who is at fault. To cover this, all Florida drivers must have personal injury insurance (PIP) included with their car insurance policy. Injury protection insurance covers 80 percent of medical bills that may result from an accident and 60 percent of any lost wages, up to a maximum of $10,000, depending on the injury classification.
In 2021, a majority of Florida state legislators attempted to address this issue by passing (SB 54) co-sponsored by State Senator Danny Burgess (R-Zephyrhills) and Darryl Rawson (D-St. Petersburg), which would have repealed the state insurance law without fault.
However, Governor DeSantis vetoed (pdf) the bill, saying the measure “does not adequately address the current problems faced by Florida drivers” and could have unintended consequences that could hurt consumers and the auto insurance market.
According to a report (pdf) commissioned by the Insurance Regulatory Authority, repealing the “no fault” law through SB 54 would raise car insurance rates by 13 percent, or about $202 per car per year. And the liability premium will rise by almost 20% for motorists who purchase health insurance with a $10,000 limit.
Another factor that drives up the cost of auto insurance in every state is the number of false insurance claims filed each year, costing insurance companies billions of dollars. Florida has one of the highest auto insurance fraud incidents in the nation, accounting for approximately 15 to 35 percent of the average driver’s auto insurance premium.
The top 5 fraudulent cities in Florida with the most suspicious vehicle collisions include Miami, Orlando, Tampa, Hialeah and West Palm Beach.