In 2024, a Florida driver’s average annual cost of full coverage automobile insurance was $3,166.
The average insurance premium is 35% higher than the national average, and these rates are expected to increase by another 10% in the state compared to last year. According to the insurance software company Insurify, this year’s average annual premium will cost consumers approximately $3,484. Insurify has also provided several reasons explaining why Florida drivers will be paying more this year.
Florida operates under a no-fault insurance system, meaning that insurers pay personal injury protection (PIP) claims regardless of who is at fault for an accident.
Between 2011 and 2021, auto glass fraud in Florida surged by nearly 4,000%, prompting state lawmakers to enact legislation to address the issue. Insurify reports that insurance fraud is a major reason why Floridians will face higher car insurance rates this year.
In contrast, analysts in other parts of the country project that some states will experience slower rate increases, around 5% in 2025.
If inflation decreases, this could lead to lower premiums. However, the increasing incorporation of advanced electronics in new car models is driving up vehicle prices, which in turn raises car insurance costs. Additionally, repairs for electric components can be expensive if a car is damaged in an accident.
To secure lower premiums, the Insurance Information Institute advises drivers to shop around and obtain several quotes from different car insurance companies before choosing a policy.
“Do some research to understand what type of insurance is right for you; it will help prevent drivers from buying too much or too little coverage,” stated the Institute.
Maintaining a safe driving record and a good credit history can also significantly reduce auto premiums. Furthermore, insurance companies may offer discounts for drivers who install safety features in their vehicles.
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