Information | Auto Insurance Rates In Florida Is One Of The The Highest In The US

By | July 22, 2019

Why is Florida Auto Insurance among the highest among other US states?

The average value for auto insurance that car owners and drivers have to pay in Florida is $1,650, higher than the national average of $1,325. But the value of auto insurance in Florida is still below the value of auto insurance in the state of Michigan and Louisiana, even though the value is not far adrift.

Auto Insurance Rates
Auto Insurance Rates

The value of Florida Auto Insurance is higher than other US states because insurance companies in Florida have relatively high costs compared to other states. This high cost arises from the many losses and claims that must be dealt with, as simple as that.

It is something that might be difficult to accept logic considering that Florida does not get winter weather, there are no mountains with dangerous conditions, the weather is always warm and sunny throughout the year. Why are there many claims and losses that must be paid by the insurance company to increase insurance costs?

Information | Auto Insurance Rates In Florida Is One Of The The Highest In The US

It turns out that one of the main reasons was the State of Florida is one of the states in the US that requires driver to have Personal Injury Protection insurance or PIP. The latest data stated that around 20% of Florida Auto Insurance are included in the PIP coverage. Sun Sentinel in Florida says that around $3.5 billion were paid by drivers and in Florida every year and some of them even paid up to $2,000 per year only for PIP coverage.

There are other causes, namely the State of Florida applied some type of minimum limit for insurance policies offered which at first glances seems to lighten the driver, but actually it is only a condition that causes the driver with a “minimum” insurance policy to pay a nominal lower than the driver on generally those with more limited abilities must pay higher prices. Compared to car drivers in other US states, car drivers in Florida have a tendency to prefer compensation through lawsuits that are taken into considerations for insurance company to increase insurance costs.

The characteristics of the population in the State of Florida are related to auto insurance, most of which are filed in urban areas compared to rural areas. With a population of 21 million people and more population in large cities and medium cities, the rate of accidents were relatively higher in large and medium cities. With this unequal population density, Florida is the third most populous state in the United States, after California and Texas.

Why Does Florida Require Personal Injury Protection?

As we all know, the cause of the high cost of Florida Auto Insurance is because the state government requires Personal Injury Protection (PIP) and only a few states in the US require this. Before PIP is required in Florida, drivers can claim up to $10,000 and the impact of clinics and hospitals that are faced with conditions must be able to provide maximum and satisfactory care with the insurance coverage that is a difficult situation to them.

Actually the Florida state government has been trying to improve the system by implementing the PIP 9.0 Reform, which aims to reduce the cost of the PIP premium by issuing a ban on drivers using PIP for the cost of massage or acupuncture and limiting the maximum emergency fee to only $2,500 above, the results obtained are quite significant, insurance companies in Florida are able to save up to $2 billion per year.

But until now Florida drivers are still among the highest paying auto insurance premiums in the US.

Therefore, if you live and need to buy auto insurance in the state of Florida, the best thing you should do is to compare as many offers as possible from several insurance companies before you decide to buy the best among them.

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