A new report by MarketWatch Research analyzed which states consumers were paying the highest amount for car insurance.
Florida drivers experienced significant premium relief in 2025 with a $303 decrease, but the state remains among America’s most expensive insurance markets due to persistent climate risks that continue driving underlying costs.“Florida’s unpredictable insurance landscape allows for rapid market corrections, yet persistent climate risks continue to keep the Sunshine State among the most expensive places for insurance in America,” stated MarketWatch.
Key Findings for Florida:
Temporary Relief in 2025: Drivers experienced a 9% decrease in premiums, resulting in an average savings of $303. Despite this drop, Florida remained one of the costliest states for auto insurance, with an average premium of $3,229, ranking it as the second most expensive state. On average, consumers in Florida pay $796 more than the national average.
What’s the Outlook for 2026?
Experts project a nationwide increase of 7.5% in premiums for 2026. For Florida, this could translate to an additional $242 in annual costs.
Why This Matters: If these projections are accurate, Florida drivers could end up spending nearly twice the national average on auto insurance by 2026, making it increasingly difficult for working families to afford essential coverage despite the recent temporary relief.
In many states, car insurance costs have risen since last year. “We’re still catching up from a post-pandemic perfect storm,” said John Espenschied, founder and agency principal of Insurance Brokers Group, in an interview with MarketWatch Guides. He attributes the rising rates to higher repair costs, labor shortages, and increasingly expensive vehicles. “Insurers are recalibrating after experiencing underwriting losses that made the period from 2022 to 2023 look like a demolition derby for their bottom line.” As repair costs escalate, insurance providers may raise premiums to accommodate payouts.
