Study finds Florida has third highest car insurance costs in U.S., cites ‘severe weather’
TALLAHASSEE, Fla. – A recent report by Insurify found that Florida has the third highest car insurance costs in the nation, only trailing Nevada and New York.
According to the report, Floridians pay an average of $2,917 a year for full coverage on their car insurance. New York, the most expensive state, pays 3,374.
Florida’s average is 44% higher than the national average of 2,019 per year.
Insurify pointed to “severe weather” conditions as an indicator of why the state has such high costs.
Additionally, it argued that “rampant insurance fraud” also drove up Florida’s rates in the previous years.
The report pointed out how Gov. Ron DeSantis signed legislation in 2023 designed to reduce frivolous lawsuits and fraud under Florida’s no-fault system.
Florida tied the Empire State at 4.3% for the second highest average percentage of income individuals were putting towards car insurance costs. Louisiana came in first at 4.7%
Besides New York, other places with highly congested populations like Delaware, Maryland, Michigan and Washington, D.C. were on the top ten.
New Hampshire was found to have not only the lowest average annual car insurance cost at just over $1,000 per year, but they were also the state with the lowest percentage of average income going towards the costs, at just 1.2%.
According to the study, the nation saw a skyrocketing 23% increase in car insurance costs during 2023. Insurify predicts that as the market begin to stabilize, Americans will only see a 7% increase in 2024.
The company found that as over 60% of Americans reported insurance rate increases in the previous year, lowering coverage limits and increasing deductibles were the most common ways drivers accommodated.
