A recent analysis ranks Florida as the nation’s most expensive state for auto insurance.
The national average rate for comprehensive motor vehicle insurance is $1,682 per year in 2022. With an average premium of $2,560 per year, or $213 per month, a recent analysis by insure.com ranks Florida as the most expensive state in the country for auto insurance. That’s a 23 percent increase in rates from 2021, making the Sunshine State about 52 percent more expensive than the national average. Ohio’s average annual insurance premiums of $1,023, ranking Buckeye state among the cheapest auto insurance rates.
Several factors – such as Factors such as driving habits, gender, age, location, creditworthiness, and vehicle type also affect auto insurance rates. However, drivers in debt-free states like 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 will turn to their car insurance company for claims, regardless of who is at fault. To cover this, all drivers in Florida are required to have Personal Injury Protection (PIP) insurance on their auto insurance. Personal injury insurance pays 80 percent of medical bills that may arise as a result of the accident and 60 percent of any lost wages, with a cap of $10,000, depending on injury classification.
In 2021, a majority of Florida state legislators strove to address this issue with the passage of (SB 54), co-sponsored by state senators Danny Burgess (R-Zephyrhills) and Darryl Rouson (D-St. Petersburg) that would have done so State Insurance Act abolished without fault.
However, Gov. DeSantis vetoed (pdf) the bill, saying the measure “does not adequately address the current issues facing Florida drivers” and could have unintended consequences that would be bad for consumers and the auto insurance market.
According to a report (pdf) commissioned by the Office of Insurance Regulation, SB 54’s repeal of the “no-fault” law would have increased auto insurance rates by 13 percent, or about $202 per vehicle annually. And liability premiums would increase nearly 20 percent for motorists who purchased medical payment insurance with a $10,000 limit.
Another factor driving up the cost of auto insurance in every state is the number of false insurance claims filed each year, costing insurance companies billions. Florida is one of the countries with the highest rates of auto insurance fraud, accounting for an estimated 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 are Miami, Orlando, Tampa, Hialeah, and West Palm Beach.