Florida is consistently ranked consistently among the most expensive states for auto insurance, with an average annual cost higher than the national average. Higher contributors include frequent hurricanes, higher than average accident rates and Florida’s disability insurance system. Florida’s car insurance rates continue to rise since 2025, with some estimates increasing by up to 10%.
Insurance is expensive in Florida. It also does not only affect the high prices of home insurance in hurricane-prone states. Florida has long been one of the most expensive states when it comes to car insurance costs.
According to Bankrate’s January 2025 data, Florida has the third highest annual cost of the lowest range in the US, and the most expensive overall in terms of average cost of a full compensation policy.
A recent survey of online insurance market insurance also reported that car insurance prices are likely to rise by another 5% in 2025 after an as many as 42% increase since 2025. .
Regardless of the ranking differences, Florida ranks high on all insurance markets and on the top 10 lists of personal finance companies in most cases when it comes to the cost of car insurance by states. But why are the prices so high?
Here’s what you need to know about the average cost of car insurance in Florida: Why it’s so expensive and insurance forecast for 2025 rates.
Is Florida the most expensive state for car insurance?
According to Bankrate’s January 2025 data, Florida is the state with the highest annual average of $4,171, 58% higher than the national average of $2,638, with a national average of $2,638.
On the Bankrate list, Louisiana, New York and Nevada will be second, third and fourth, respectively.
Florida is the third most expensive after New York and Nevada in terms of average annual cost of lowest-range car insurance, at $1,135 per year, according to Bankrate.
A recent study from Insulify predicts that the average annual cost of car insurance in Florida was $3,166 in 2024, while the average cost of car insurance in Florida was $3,166, and would rise to $3,484 in 2025. It’s there. , it will increase by 9% from 2023 to 2024.
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Why are car insurance premiums so high in Florida?
According to Insurify, the price hike is thanks to the losses experienced by Florida customers and auto insurance companies. And it doesn’t help that Florida is in a state without obstacles. This means an increase in insurance companies’ claim costs.
“Record-breaking financial losses in 2022 have made Florida’s struggling insurance market a tailspin. The Florida insurance crisis has primarily affected household insurance, but losses have been the same. Auto insurance companies have pushed them to reduce state exposure,” the Insurify report said.
“The state also has a disability-free insurance system, meaning that insurers will pay personal injury protection (PIP) claims regardless of whether the accident is disabled.”
According to Insulify Data Insights Manager Chase Gardner, one of the biggest reasons Florida is seeing higher car insurance rates than most other states is hurricanes.
“For Florida, drivers pay significantly more than the national average, for a few reasons. One of the biggest reasons is the state’s climate risk, especially from hurricanes,” Gardner told the USA Today Florida Network I did. Interview.
“This is the type of news that often gets range and makes the most headlines in the home insurance market. However, these huge, damaging storms cause heavy winds and floods, which also affect vehicles. 2024 That alone, Hurricane Helen and Milton have caused more than $1 billion in damages.”
Gardner also highlighted that Florida frequently sees more serious car accidents than most other states.
“Additionally, Florida has several other driving factors, including a higher accident and fatal accident rate per mile compared to the average US.” Gardner said. “This means that accidents are more common and serious in this state, driving car insurance premiums.”
What is the average monthly cost of car insurance in Florida?
Drivers pay between $95 and $348 per month, based on the average annual cost of bankrate car insurance in Florida. Based on Insurify’s car insurance costs in Florida, Sunshine State drivers pay an average of around $264 each month.
Will car insurance premiums fall in 2025?
Unfortunately, car insurance premiums will only continue to rise, according to an Insurify report.
“The rise in car insurance premiums in 2025 will not be more dramatic than in the last two years. Insulify’s data science team forecasts a 5% nationwide increase this year,” the report stated. Masu.
“However, drivers in Florida and New York could increase by 10%. In Georgia, Nevada and Delaware, project premiums will rise by 7% to 8%.”
According to Insulify’s 2025 forecast, the average cost of car insurance in the state could rise to up to $3,484 this year.
What is the cheapest car insurance in Florida?
Which car insurance provider is the cheapest and best for you is the other factors that determine your driving record, how old you are, and how likely you are to file a claim. It depends on.
It is important to remember that you sell insurance policies in the hopes that your insurance company won’t have to pay you. The likelihood is that you file a claim. Insurance is more expensive.
Gardner says that when most people shop for insurance and compare prices, they may not know that car insurance companies will assess risks differently.
“I think the best thing drivers can do now, whether they use any kind of insurance market or not, is comparing quotes from multiple different companies,” Gardner said.
“People may not be aware of this, but they calculate the risk differently as rates. So, some companies may give a better rate just because they are you, and the drivers do that You should try to make the most of it as much as possible.”
According to Bankrate’s January 2025 data, GEICO and State Farm offer some of the cheapest policies available in Florida.
“When looking at the cheapest car insurance in Florida for minimal coverage, GEICO and State Farm stand out. Both companies have average rates below the state average,” Bankrate says.
“Allstate and Progressive also offer robust policy options at reasonable prices.”
According to Bankrate, as of February 2025, the cheapest options for fully covered auto insurance in Florida are:
State Farm, monthly average premium R State of $258, monthly average premium geiko of $333, monthly average premium progressing of $348, monthly average premium $460
This story has been updated to change the video.
