In 2024, the average annual cost of fully covered car insurance for Florida drivers was $3,166.
The average premium is 35% higher than the national average, and these fees are expected to increase by an additional 10% in the state compared to last year. According to insurance software company Insulify, the average annual premium this year costs consumers around $3,484. Insulify also offers several reasons to explain why Florida drivers pay more this year.
Florida operates under a disability-free insurance system. In other words, insurance companies pay personal injury protection (PIP) claims regardless of person with a disability in the accident.
Between 2011 and 2021, Florida’s auto glass fraud surged nearly 4,000%, urging state legislators to enact laws to address the issue. Insurance reports say insurance fraud is the main reason Floridians are increasing car insurance rates this year.
In contrast, analysts from other parts of the country predict that the speed increase by about 5% will be slower in 2025.
If inflation decreases, this could lead to a lower premium. However, the incorporation of sophisticated electronics into newer car models is to raise the price of the vehicle, which increases the cost of car insurance. Additionally, if your vehicle is damaged in an accident, repairing electrical components can be expensive.
The Insurance Institute advises drivers to shop from various car insurance companies and get some estimates before choosing an insurance policy to ensure a lower premium.
“Do some research to understand the type of insurance that is right for you. This will help prevent drivers from having too much or too little coverage,” the institute said. Masu.
Maintaining a safe driving record and a good credit history can also significantly reduce your car premium. Additionally, insurance companies may offer discounts to drivers who install safety features on their vehicles.
