If you live in Florida, finding auto insurance that covers what you need at a price you can afford can be a challenge. Learning about Florida auto insurance rates, statewide car insurance laws, and how to get the best price on car insurance in the state can help you get the most value for your dollar. Let’s look at what you need to know about insurance rates in Sunshine State, including the minimum liability requirements, rate averages by city, and how to get cheap car insurance that fits your budgetary needs.
What To Know About Florida Auto Insurance Rates
Florida auto insurance rates tend to be high relative to the national average. While the national average for auto insurance is $1,674 per year, the average rate for drivers in Florida is $2,364 per year. Although this number is significant, it’s important to understand what factors contribute to these averages. For example, the average rate for auto insurance can vary widely based on a number of individual factors for drivers. Insurance rates are generally higher for those who live in major or coastal cities, which tend to have dense populations and high costs of living.
Additionally, factors like age, credit score, vehicle value, and level of coverage affect the expense of car insurance. Even if you’re a Florida resident, you still have options to reduce the cost of your insurance rate. For example, you may choose a minimum liability coverage policy to pay less for your insurance. The average annual premium for a minimum liability policy in Florida is $1,101. By comparison, the average annual premium for a full coverage policy is more than double the minimum at $2,364.
Average Florida Auto Insurance Rates By City
Your city of residence can affect how much you pay for car insurance. In particular, cities with high costs of living and dense populations tend to come with higher car insurance costs. This is because drivers are more likely to be involved in an accident if they live in an area with a high concentration of traffic. Additionally, cities with higher crime rates may also contribute to higher car insurance premiums. Since cars may be more likely to incur damages caused by theft and vandalism in cities with high crime rates, insurance premiums are often higher for these regions.
Here is a list of average Florida auto insurance rates in the state’s five most populated cities:
- Jacksonville: $2,745
- Orlando: $2,958
- St. Petersburg: $3,204
- Tampa: $3,653
- Miami: $3,938
Car Insurance Laws in Florida
When researching Florida auto insurance rates, it’s important to understand state laws regarding car insurance requirements. All states regulate their own car insurance requirements for drivers. This means that the minimum liability insurance coverage requirements for drivers can vary depending on their state of residence. Florida is a no-fault state, meaning that all drivers involved in an accident need to file their own claim for bodily injury and medical expenses regardless of who’s at fault for the accident. This reduces the volume of lawsuits that small claims courts need to handle, which helps to accelerate the reimbursement process.
Further, Florida differs from many other states in its minimum liability coverage requirements. The minimum coverage requirements for Florida are:
- A minimum of $10,000 in personal injury protection
- A minimum of $10,000 in property damage liability
Personal injury protection coverage handles 80% of expenses related to reasonable and required medical care up to $10,000 after an injury, regardless of who caused the accident. Property damage liability covers the damage done to another person’s property by your vehicle.
While all drivers must have this level of coverage at a minimum if they reside in Florida, many drivers opt for a more extensive policy to better protect their financial investment in their vehicles. Choosing a comprehensive and collision policy, also known as a full coverage policy, grants additional protection.
Here’s the difference between comprehensive and collision policies:
- Comprehensive: Comprehensive coverage handles damages caused by events beyond collisions. For example, this type of coverage can protect your vehicle if it’s damaged in a natural disaster.
- Collision: Collision coverage protects your car in the event of a collision-based accident, like running into another car or other object.
How To Get Cheaper Car Insurance in Florida
If you’re looking to get cheaper Florida auto insurance rates, there are some steps you can take. Here’s what you can do to reduce your car insurance costs:
- Shop around: Research your options thoroughly when shopping for the best rate. Get quotes from several providers and determine which one offers you the best value for your money, gives you the level of coverage you need, and fits within your personal budget.
- Practice safe driving: Having a clean driving record can result in reduced insurance costs. Many providers offer rewards for drivers who go accident-free over a period of time.
- Improve your credit score: Insurance companies determine how much to charge you for your policy based on the level of risk you pose. If you show a good credit score, you may get a better price on your policy.
- Combine policies: It’s cheaper to bundle your policies with others. For example, if you’re the parent of a new driver, it can be less expensive to cover them if you combine your policy with theirs.
- Take a safe driving class: Many insurance providers will reduce their rates for clients who invest in safe driving habits, such as by taking a defensive driving course.
Average Car Insurance Rates in Florida By Company
To help you get an idea of how much it costs to insure your car on average in Florida, here’s what the average full coverage premium costs per year in Florida for four insurance companies:
- Allstate: $2,441
- GEICO: $2,085
- Progressive: $2,573
- State Farm: $1,739
It can take time to find the best car insurance policy for your budget and coverage needs. Understanding Florida auto insurance rates and coverage laws can help you determine what level of coverage you need and budget for these expenses. Although car insurance can be pricey, doing your research and taking advantage of opportunities to reduce your expenses can help you get the best deal for your policy.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.