Auto insurance is expensive in Florida. But auto insurance prices are dictated by factors other than state lines. Auto insurance premiums consider a number of components, including your driving record, credit history, gender, age, and marital status. We analyzed mean Florida car insurance prices by each of the main pricing factors. See below how much car insurance costs in your state — or enter your zip code to receive personalized quotes from top car insurers.
The big reason that D. The entire district is basically an urban area, which leads to higher insurance rates. According to Census information, D. C has a population density of 11, people per square mile.
While this number is certainly smaller than New York City, which clocks in at 28, people, it puts it well above other large cities, such as Houston and even Los Angeles. Highly-populated cities often have higher crime, claim and vandalism rates, which means insurers have to charge higher rates to cover their costs. Tons of cars crammed into a small space leads to more accidents, which leads to claims, which ends in high car insurance rates.
High rates of disposable income can also push up insurance rates and D.
What's the Average Cost of Auto Insurance in Florida?
C definitely falls into that category. The greater D.
Statista found that D. Most of our cheapest states for car insurance are fairly rural and not located in Tornado Alley. Less population density leads to fewer accidents and cheaper premiums. Maine jumped up 13 spots this year to capture the top slot for cheap car insurance.
The usual suspects come into play to help keep premiums low in Maine. The Pine Tree state ranks 38 th for population density. In addition, Maine has a healthy car insurance market. Maine also keeps its uninsured motorist rate low, very low.
Maine has the lowest rate of uninsured drivers in the entire country with only 4. Wisconsin made a five-spot jump this year to finish second in the least expensive rankings. The reason car insurance is so cheap in Wisconsin is a bit of a mystery. While not a huge magnet for severe weather it does receive its fair share of snow in the winter and tornadoes in the summer.Why Are Auto Insurance Rates Increasing
Flooding is not uncommon and rising rivers point to spring flooding this year. Flood damage is covered by comprehensive coverage, which is not required in most states, if you want your vehicle to be fully covered, you will need to carry this optional coverage. Wisconsin falls right in the middle when it comes to population density, ranking 25th, but much of the state is rural.
Finally, a healthy and competitive car insurance market helps keep premiums in check.
When hundreds of insurance companies compete for customers, premiums tend to go down. The number of insurance companies that write policies in a specific state can have a major impact on rates.
In certain states, usually ones that are prone to major storms such as hurricanes, a lack of insurers writing policies in the state can push up costs dramatically.
Why Auto Insurance Rates Are Likely to Increase in 2019
Idaho stayed in third place for the third year in a row. Idaho is pretty sparsely populated and mainly rural which leads to lower car insurance rates. According to World Atlas, Idaho has the seventh least population density in the country.
Drivers in Florida pay some of the highest car insurance rates in the United However, it really just increases prices for drivers who want. What Does Auto Insurance Cost in Florida . The U.S. Dept. of Labor estimates that auto insurance premiums have increased by 16 percent. Recently besieged by steep rate increases for health insurance and homeowner's insurance, South Florida residents are getting zonked again.
There are roughly 20 people for every square mile. Wide-open spaces with few people mean fewer cars out on the road and fewer accidents, everything an insurance company loves.
Auto insurance rates in florida increasing
Idaho rarely experiences severe weather disasters, although wildfires have been an issue in years past. Finally, Idaho has a robust insurance industry with over insurance companies writing policies in the state. A healthy and competitive insurance market means drivers have plenty of options available to them and competition among insurers keeps premiums affordable. When most people think of Iowa, farms and wide-open spaces come to mind. According to a USDA survey, there were 86, farms dotting the Iowa landscape inwhich translates into roughly Iowa moved up one spot from last year into the fourth slot.
Rural living means less population density, fewer cars on the road, and in most cases, fewer accidents and insurance claims, all of which translates into lower premiums. Iowa is among the states with the lowest uninsured driver rates in the country, at just eight percent. Virginia dropped one spot from fourth to fifth in the rankings.
According to Kenneth Schrad, director at the Division of Information Resources in Virginia, one of the most prominent reasons that car insurance is so affordable is a competitive market.
So, competition is an effective regulator of the premiums charged. Not all states require drivers to carry uninsured motorist coverage. Virginia is a bit of a hodgepodge when it comes to population density and that diversity can also help lower premiums, according to Schrad. As such, insurance companies are permitted to underwrite their policies to the risks associated with specific geographic areas of the state.
Getting auto insurance quotes is an insanely customized process, In sum, customer loyalty is being rewarded with gradual rate increases that. Auto insurance rates have consistently increased over recent years, with underwriting losses expected to cause further car insurance premium hikes in After increasing for most of the decade, the number of motor vehicle crashes That might help to explain why auto insurance rates are leveling off, and in Those follow a year in which total motor vehicle crashes in Florida.
In other words, if the risk of an accident is historically shown to be greater in a metropolitan area, the policy is priced accordingly. The bottom line is whether you live in an expensive state, cheap state or somewhere in between, to get the best rates for your specific situation you need to shop around. While states with a healthy, competitive market give you more choices, all you need to do is find at least three car insurance companies to compare to get started on finding the best rates possible.
Use the interactive map below and hover over any state to display the average annual rate, comparison to national average, and the percent change from last year. The hypothetical driver has a clean record and good credit.
The rate includes uninsured motorist coverage. Actual consumer rates will depend on individual driver factors. To keep from skewing the data with high-end luxury and sports vehicles, the study averaged rates for the 20 best-selling vehicles in U. Each model was rated on its cheapest-to-insure trim level.
Florida currently sits at number four in the list of most expensive auto insurance rates in the country, right behind Washington D.C., Louisiana. The average car insurance rate in Florida is $1, per year — % . will raise your insurance rates in Florida by an average of $ Florida drivers are paying the third-highest rates for car insurance in the the annual average premium increased by 10 percent to $2,
You can see rates for more than 3, models in Insure. This apples-to-apples comparison is different than other research, such as the rate comparison conducted by the National Association of Insurance Commissioners NAIC. I don't believe it is fair that insurance companies are allowed, by law, to check your credit report.
I have worked my fingers to the bone to attain good credit. My credit score was excellent. After having a new HVAC system put in it went down to "good. It it very unfair to pay more for insurance because my debt increased. My finances should not be any business of the insurance companies.
I always pay my bills on time and have never been late with a premium payment. I grew up in Michigan and am thinking of moving out of state and one of the few primary reasons is the high, unaffordable cost to insure my family friendly vehicles!!
Prefer to talk to someone? The company, headquartered in Boca Raton, has about 77, clients in 11 states, Broder said. Young adults and drivers with less-than-perfect records can expect to take the worst hits.
Experts are blaming the rate hikes on increased risks on the roads: Too many drivers are staring at their smartphones from behind the wheel. Cheap gas is causing us to log more miles, and the strong economy is putting more vehicles on the roads.
More crashes lead to more claims. More claims lead to higher costs for insurers. Higher costs for insurers must be recouped by charging everyone more. Crashes with fatalities increased 27 percent — from 2, to 3, Crashes and fatalities in the tricounty region increased at a slightly lower rate over the same period — crashes increased 12 percent and fatalities jumped 24 percent.
After hovering aroundsincethe annual number of crashes statewide began trending upward incoinciding with the beginning of the economic recovery and the rise in popularity of smartphones.
Crashes have increased each year since — fromin toinstate data shows. The sharpest price increases are coming from a handful of companies, Broder said, including Safeco Insurance, Nationwide Insurance and Hartford Insurance Company of the Southeast.
What makes Florida such an expensive place to insure a vehicle? Why are car insurance premiums so high in Florida? In fact, Florida regularly ranks as one of the top 5 or top 10 most expensive states in America in which to insure a vehicle. Michigan and Louisiana consistently rank higher than Florida as the two most expensive states in the country for car insurance, although Florida is never far behind.
We get it: Florida drivers pay a lot for car insurance. Drivers in Florida pay more for car insurance for an obvious reason: Insurance companies have high expenses because they handle a lot of losses and a lot of claims.
The next question is: There are no mountains with dangerous driving conditions. Why do Florida drivers make more claims and drive up costs for insurance companies?