Required Car Insurance In Florida - Since 2015, Florida drivers have seen their auto insurance bills rise above average. The average rate increase was about 3.5% per year, although some companies increased premiums by as much as 22% in a year.
Auto insurance premiums in Florida have risen an average of 23% overall since 2015 – faster than the national increase of 17% over the same period. Almost every major company in the Sunshine State has raised rates significantly over the past six years. USAA, Liberty Mutual and American Family had the biggest increases, between 43% and 44% over six years.
Required Car Insurance In Florida
While most auto insurance companies raise their rates every year, the amount varies. That's why we recommend that you always collect three or more quotes when you're shopping for coverage. For example, while Geico has increased rates by 35% in Florida since 2015, the company is still one of the most affordable insurers in Florida.
Accepted Auto Insurance For Lakeland, Fl
Among all 50 states, Florida had the fifth-highest increase in auto insurance rates since 2015. Overall, states in the South and the Mountain region saw the highest rate increases, with nine of the 10 states with the largest increases coming from these two areas. In Georgia and Colorado, the combined growth was 29% - the largest in the country.
A quick explanation for why auto insurance costs have increased in Florida is that the frequency and cost of auto insurance claims have increased. Most of the money you spend on car insurance goes towards paying other people's claims, so as more drivers make car insurance claims, your rates are likely to go up as a result.
Because of its location on the Gulf Coast, Florida is more susceptible to natural disasters than most other states. According to NOAA, 23 percent of all billion-dollar disasters in the U.S. since 1980 (adjusted for inflation) have occurred in Florida.
What's more, these costly disasters have increased over time, with 21 such disasters in Florida since 2016, compared to six between 2010 and 2015.
Why Is Florida Car Insurance So Expensive?
An increase in natural disasters such as hurricanes, tropical cyclones, and floods increases insurance costs because auto insurance, particularly comprehensive coverage, pays out when these events damage your car. As long as you have comprehensive coverage, you are likely to be covered if your car is damaged by wind, hail or flood. However, these costs ultimately fall on your insurer and other drivers.
Florida has one of the highest rates of uninsured drivers in the US at 20% in 2019. This is significantly higher than the US average (13%), and ranks sixth overall.
Florida's high rate of uninsured motorists results in higher premiums for drivers who have coverage. That's because 80% of covered drivers will end up footing the bill for accidents that the uninsured 20% are responsible for, either through uninsured motorist insurance or collision coverage if they have it, or out of pocket.
While some of the reasons for the increased rates are more common in Florida, there are other trends that hold no matter where you live in the country.
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In the spring of 2020, driving decreased as people stayed home due to the coronavirus pandemic. As a result, accidents have gone down and so have insurance rates - some insurers have even offered compensation as a result of collecting more premiums than they need to.
However, when people returned to work in the office and traveled around the country in 2021, road use resumed. In April 2021, according to the Department for Transport, there was a 55% year-on-year increase in driving across the country, leading to more accidents and claims.
The average price of a new car has risen significantly in recent years, with the average price in 2021 hovering around $46,000, according to Kelley Blue Book. This is a 39% increase from 2015.
In addition, the cost of repairing cars has increased across the country. found that car repair and maintenance costs more than doubled in 2020.
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Cars that cost more at the dealership and cost more to repair after an accident mean the dollar amount of claims also increases. Unfortunately, this is true even if you don't have a fancy new car. If you are at fault in a Lexus accident, your insurer is still responsible for the high cost of repairs.
If your car insurance is becoming less affordable for you, there are some key steps you can take to address the issue.
First, assess whether there are cheaper options for your coverage. According to Nielsen survey data, only 25% of Floridians with auto policies have purchased new insurance in the past three years.
We recommend that drivers look for a new policy every year or so. For example, drivers in Miami can see annual rates vary by several thousand dollars. There's no way to know if your current policy is too expensive until you shop around from time to time.
Florida Auto Insurance
Adjusting your insurance limits is another way to save money on your car insurance. For example, a car that's more than 10 years old or worth less than $3,000 probably doesn't need comprehensive or collision insurance - the cost of your insurance will be higher than the depreciation of your car. Declining comprehensive and collision coverage dramatically lowers your rates.
You should also look at liability coverage limits. Make sure they make sense in the context of your assets and the likelihood that you will be involved in litigation. If you are confident in your ability to drive safely and want to prioritize your savings, you can also adjust your liability limits to meet Florida's minimum requirements.
Discounts are another easy way to save money on your car insurance. There are defensive driving courses in Florida that can save you 5% to 10% on your premium. Another example is a good student discount: drivers with children with a GPA of at least 3.0 can qualify for a 10% discount.
We determined typical historical rate increases for Florida drivers by analyzing rate changes reported by Florida auto insurers. State averages are based on 2020 insurance market share.
Does Florida Auto Insurance Cover Rental Car Accidents?
Apply for insurance by phone: (855) 596-3655 | Agents are available 24 hours a day, 7 days a week! The cheapest auto insurance companies in Florida are Geico, State Farm and Travelers. Florida drivers can save hundreds or more dollars a year on auto insurance simply by shopping around and comparing quotes.
Florida auto insurance isn't cheap. In fact, Florida was the 36th most expensive state for car insurance in our national survey of cheap car insurance. One big reason is that Florida has the highest percentage of uninsured drivers in the country at a whopping 27%. Uninsured motorists cost billions of dollars a year, and insurance companies bear most of that cost before passing the cost on to consumers in the form of higher rates.
Comparing auto insurance options is especially important in Florida because rates can be very high. Also, some companies charge much more than others for the same coverage. In Florida, the average difference between the highest and lowest price for comprehensive coverage is more than $1,500. This shows how much Floridians can potentially save by shopping around.
To help, analyzed quotes from all major insurance companies using multiple driver profiles and zip codes in the state to find the best cheap Florida car insurance companies.
Five Rules Of The Insurance Game
Geico has the cheapest auto insurance for most good drivers in Florida. Insurers consider drivers who have never been in an accident or received a ticket to be good drivers and pay less for insurance than drivers with bad records. In addition to low rates, good drivers can often qualify for additional discounts from the insurance company.
Full coverage refers to policies that exceed the minimum state requirements. Because comprehensive coverage protects you in more situations, it costs more than minimum coverage.
After a speeding ticket, most drivers' insurance rates will go up within 3-5 years. It's important to remember that each insurance company calculates rates differently, so you should always get multiple quotes to make sure you're getting the best deal.
An at-fault accident will usually have a negative impact on your insurance for 3-5 years as insurers will consider you a high risk group. Because of your higher rates, it's even more important to comparison shop.
King Insurance Personal Insurance
A poor credit score often marks drivers as a higher risk group, so insurers typically charge them more for coverage. However, because insurers use different formulas to calculate premiums, bad credit may affect your rates more with one company than another. Since each insurance company treats the loan differently, it is worth comparing the quotes.
Because young drivers have less driving experience, insurers tend to charge them higher rates than more mature drivers. On average, for most drivers, rates decrease with age, and after age 25, they decrease significantly. Cheapest auto insurance in Florida for older drivers
Although adult drivers pay less for car insurance than teenagers, older drivers are starting to see their rates go up
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