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Analysts say some Florida consumers are seeing lower auto insurance premiums.
However, researchers at CarInsurance.com say the average annual premium for drivers in Florida remains high, hovering at nearly $4,000 a year.
The national average annual cost of full coverage insurance is approximately $2,578.
So why are prices so high in Florida?
Mark Friedlander of the Florida Insurance Information Institute said the rising rates are due to bad weather and uninsured motorists.
“Florida motorists pay the highest average insurance premiums in the United States due to a variety of factors, including the impact of severe weather on our roads, congestion patterns on interstate highways caused by residents and millions of tourists annually, road congestion in major metropolitan areas, the state’s no-fault insurance laws, and the fact that Florida has one of the highest uninsured driving rates in the nation at 20.4 percent,” Friedlander said.
However, not all states are created equal, and rates may vary depending on state laws, driving profile, and vehicle profile.
Car Insurance.com found the most expensive states include Louisiana, Michigan, and Nevada. These markets have the highest average annual full coverage premiums.
Some of the cheapest states include Vermont, New Hampshire, and Hawaii, and drivers in these states have some of the lowest average auto insurance premiums.
Rates vary based on state law and risk. Minimum coverage requirements, accident rates, theft frequency, and weather-related claims all affect premiums.
Your zip code and area of residence can also determine the cost of your auto insurance.
Insurance agents say they can predict what insurance premiums will be by assigning risk levels to ZIP codes based on the number of uninsured motorists and the frequency of theft, collisions and vandalism, and assessing the likelihood of such incidents occurring in a particular ZIP code.
