Allworth Recommendation: How sensible automobiles have an effect on automobile insurance coverage
Amy Wagner with Allworth Monetary discusses how your sensible automobile will be affecting your automobile insurance coverage.
Allworth Monetary
- Florida persistently ranks among the many most costly states for automobile insurance coverage, with common annual prices greater than the nationwide common.
- Elements contributing to excessive charges embody frequent hurricanes, a higher-than-average accident price, and Florida’s no-fault insurance coverage system.
- Consultants predict automobile insurance coverage charges in Florida will proceed to rise in 2025, with some estimates projecting as much as a ten% enhance.
Insurance coverage is dear in Florida. And it doesn’t solely have an effect on the hurricane-prone state’s high prices for home insurance policies. Florida has long-been one of the vital costly states in terms of the price of automobile insurance coverage insurance policies, too.
In line with BankRate’s January 2025 data, Florida has the third-most costly annual prices for minimal protection within the U.S. and the most-expensive general in terms of the typical price for full protection insurance policies.
And a current research from on-line insurance coverage market Insurify reported this month that automobile insurance coverage costs are more likely to enhance one other 5% in 2025, after rising by a whopping 42% since 2022, rating because the fifth-most costly state within the U.S. for automobile insurance coverage.
No matter variations in rankings, Florida nearly at all times ranks excessive in each insurance coverage market place and private finance firm’s high 10 record in terms of the price of automobile insurance coverage insurance policies by state. However why are the costs so excessive?
Right here’s what to know concerning the common price of automobile insurance coverage in Florida, why it is so costly and Insurify’s prediction for charges in 2025.
Is Florida the most costly state for automobile insurance coverage?
According to Bankrate’s January 2025 data, Florida is the state with the most costly common annual price for full protection automobile insurance coverage, at a mean of $4,171 annually, which is 58% greater than the nationwide common of $2,638.
On Bankrate’s record, Louisiana, New York and Nevada comply with behind in second, third and fourth locations, respectively.
In terms of the typical annual price for minimal protection automobile insurance coverage, Florida locations as third-most costly, behind New York and Nevada, at $1,135 annually, based on Bankrate.
Insurify’s current research locations the typical annual price for automobile insurance coverage in Florida slightly decrease than Bankrate – however nonetheless very costly – at $3,166 in 2024. In line with Insurify’s projections, that determine is projected to leap as much as $3,484 in 2025. That’s 10% greater, on high of the 9% enhance from 2023 to 2024.
Why are Florida automobile insurance coverage charges so excessive?
In line with Insurify, this hike in worth is due to losses automobile insurance coverage corporations skilled with Florida clients. And it doesn’t assist that Florida is a no-fault state, which suggests an increase in declare prices for insurers.
“Report-breaking monetary losses in 2022 despatched Florida’s struggling insurance coverage market right into a tailspin. The Florida insurance coverage disaster primarily affected dwelling insurance coverage, however losses pushed some automobile insurance coverage corporations to decrease their publicity within the state,” Insurify’s report says.
“The state additionally has a no-fault insurance coverage system, that means insurers pay private damage safety (PIP) claims no matter who’s at fault for an accident.”
In line with Insurify knowledge insights supervisor Chase Gardner, one of many greatest causes Florida sees greater charges for automobile insurance coverage than most different states is hurricanes, which is among the the reason why dwelling insurance coverage prices within the state are additionally among the many highest within the U.S.
“For Florida, drivers are paying fairly a bit greater than the nationwide common and the explanations for which can be a couple of: One of many greatest ones is the local weather danger within the state, significantly from hurricanes,” Gardner instructed the USA TODAY Florida Community in an interview.
“That is the kind of information that usually will get protection and makes essentially the most headlines on the house insurance coverage market. However these enormous, damaging storms inflicting extreme winds and flooding do have an effect on autos as effectively. In 2024 alone, Hurricane Helene and Milton induced greater than a billion {dollars} in damages mixed.”
Gardner additionally highlighted that Florida sees critical automobile accidents extra regularly than most different states, which is one other driving issue behind the excessive price of automobile insurance coverage insurance policies within the state.
“On high of that, there are a number of different driving components, like Florida simply having the next accident and deadly accident price per-mile-driven, in comparison with the typical U.S. state,” Gardner stated. “So meaning accidents are extra frequent and extra critical on this state, additionally driving up automobile insurance coverage premiums.”
What’s the common price of automobile insurance coverage per 30 days in Florida?
Based mostly on Bankrate’s common annual price of automobile insurance coverage in Florida, drivers pay wherever between $95 and $348 every month. Based mostly on Insurify’s price of automobile insurance coverage in Florida, Sunshine State drivers pay a mean of round $264 every month.
Will automobile insurance coverage charges go down in 2025?
Automotive insurance coverage premiums will, sadly, solely proceed to rise, based on Insurify’s report.
“Auto insurance coverage price will increase in 2025 will seemingly be much less dramatic than the 2 prior years. Insurify’s knowledge science staff initiatives the price of full protection will rise by 5% nationwide this yr,” the report says.
“Florida and New York drivers, nonetheless, might see a ten% enhance. Insurify initiatives premiums will rise between 7% and eight% in Georgia, Nevada, and Delaware.”
Insurify’s prediction for 2025 says that the typical price for automobile insurance coverage within the state might climb as much as $3,484 this yr.
What automobile insurance coverage is the most affordable in Florida?
How to save cash on automobile insurance coverage
This app will help prevent cash on automobile insurance coverage.
ProblemSolved, USA TODAY
Which automobile insurance coverage supplier is least expensive and finest for you is determined by your driving report, how previous you might be and different components that decide how seemingly it is going to be so that you can file a declare.
It’s essential to keep in mind that insurance coverage corporations promote you a coverage hoping that they won’t need to pay you. The likelier it’s that you’ll file a declare, the dearer the insurance coverage might be.
Gardner says that most individuals searching for insurance coverage and evaluating charges could not know that automobile insurance coverage corporations assess danger otherwise, which suggests one firm may provide you with a decrease price than the opposite only for being you.
“Whether or not or not they use any form of insurance coverage market, I believe the primary factor that drivers can do proper now’s simply evaluate quotes from a number of completely different corporations,” Gardner stated.
“Individuals could not understand this, however they do price and calculate danger otherwise. So one firm may provide you with a greater price only for being you and drivers ought to attempt to benefit from that as a lot as attainable.”
In line with Bankrate’s January 2025 data, Geico and State Farm supply a number of the least expensive insurance policies out there in Florida.
“When trying on the least expensive automobile insurance coverage in Florida for minimal protection, Geico and State Farm stand out. Each corporations characteristic common charges which can be beneath the state common,” Bankrate says.
“Allstate and Progressive additionally supply sturdy coverage choices at an affordable worth.”
Listed below are the most affordable choices for full protection automobile insurance coverage in Florida as of February 2025, based on Bankrate:
- State Farm, $258 common month-to-month premium
- Allstate, $333 common month-to-month premium
- Geico, $348 common month-to-month premium
- Progressive, $460 common month-to-month premium
