A recent analysis ranks Florida as the most expensive state in the country for auto insurance.
The national average rate for full-coverage auto insurance is $1,682 per year in 2022. With an average premium of $2,560 per year, or $213 per month, a recent analysis by insure.com ranked Florida as the most expensive state in the country for auto insurance. . That’s a rate increase of 23 percent from 2021, making the Sunshine State about 52 percent more expensive than the national average. Ohio’s median insurance premiums of $1,023 per year ranks Buckeye state with the cheapest auto insurance rates.
Various factors, such as driving habits, gender, age, location, credit score, and the type of vehicle, will also affect auto insurance rates. However, drivers in no-fault states, such as Florida and Michigan, traditionally pay more for auto insurance than drivers in other states.
Florida’s “no-fault” law means that, in the event of an auto accident, both parties turn to their auto insurance policies to file claims, regardless of who was at fault. To cover this, all drivers in Florida must have Personal Injury Protection (PIP) insurance included in their auto insurance policy. Personal injury insurance covers 80 percent of medical bills that may arise as a result of the accident, and 60 percent of all lost wages, up to a maximum of $10,000, depending on the classification of injuries.
In 2021, a majority of Florida state legislators made an effort to address that issue with the passage of (SB 54), co-sponsored by state senator Danny Burgess (R-Zephyrhills) and Darryl Rouson (D-St. Petersburg) that would have repealed the state’s “no-fault” insurance law.
Gov. DeSantis vetoed (pdf) the bill, but said the measure “does not adequately address the current issues facing drivers in Florida” and could have unintended consequences that would be bad for consumers and the auto insurance market.
According to a report (pdf) commissioned by the Office of Insurance Regulation, the repeal of the “no-fault” law through SB 54 would have increased auto insurance rates by 13 percent, or about $202 per vehicle per year. And the liability premium would increase nearly 20 percent for motorists who purchased medical payment coverage with a limit of $10,000.
Another factor driving up auto insurance costs in every state is the number of false insurance claims filed each year, costing insurance companies billions. Florida is among the highest in the country for auto insurance fraud, accounting for an estimated 15-35 percent of the average driver’s auto insurance premium.
The top 5 fraudulent cities in Florida with the most suspicious hit-and-runs are Miami, Orlando, Tampa, Hialeah, and West Palm Beach.