Frequently Asked Questions - What Is The Average Cost Of Car Insurance In Florida?

Automobile insurance is a major budget expense to anyone owning a vehicle anywhere in the United States.  Policy costs obviously differ from state to state due to each individual state’s requirements and other factors.

Ensuring one’s car, truck, or SUV in the State of Florida does not come cheap.  In fact, according to one study, Florida is on the list of the ten states with the highest annual premiums.  For the year 2020, the study ranks Florida as number six on that list, coming down from a prior ranking at number three.  Perhaps it is due to these relatively high premium costs that Florida also has a higher than average uninsured motorist population.  At any rate, when one considers that alarming fact and then factors in the state’s damaging storms, older drivers, mandatory no-fault coverage, etc., it is almost to be expected that Florida’s 2020 average annual premium, $2,178.00, is substantially higher than the average for the United States as a whole.

That being said, there are a number of other elements that are considered in auto insurance coverage pricing. Insurance companies consider an applicant’s age and driving history (prior accidents, claims, and so forth).  They even check your credit report.  It matters to them if you are married or not, and even the fact that you are a man or a woman will likely affect your rates.  Let’s discuss those considerations, along with a few others, to see just how lifestyle and life events and impact your automobile insurance costs over your lifetime.

To begin, it is no surprise to anyone that younger drivers pay higher premiums.  Everyone basically expects Sissy or Junior to drive a bit more recklessly than Mom or Dad, and very often that turns out to be the case due to a sudden sense of vehicular freedom and a less than a mature grasp of the realities of traffic responsibility.  In Florida, the younger drivers, male or female, pay an average premium of about $5,983.00.  But as the years go by and the kids get out of college or trade school, the premiums tend to go down.  Florida’s current average annual premiums for drivers in their thirties through the sixties are less than two thousand dollars.   Interestingly enough, age bias kicks in at about age 70, when many older drivers start to experience significant medical problems or vision issues, and the premiums begin to go back up to over two thousand dollars.

Even though younger male drivers pay a higher average premium than their older male counterparts, it is women drivers who usually get charged slightly more for coverage than men do throughout their driving career.  Just saying the old phrase “woman driver” (usually while rolling one’s eyes) brings to mind the stereotype of the flustered and incompetent woman behind the wheel panicking as her car rear-ends the Bentley ahead of her.  Sexual equality or not, the fact is that women drivers in Florida usually pay about thirty-four dollars more than men annually.

Likewise, you may think that it should not matter if a driver is married or not, but that little fact can certainly impact the calculation of the premium.  In Florida, a married driver currently saves more than seventy dollars per year on the premium.  That is higher than the national average, which is good news, and perhaps somewhat of an incentive to tie the knot.

Speaking of lifestyles, did you realize that often an insurance company will adjust your premium cost based on whether you own your own home or rent from someone else?  The rate difference isn’t much – about five dollars – but seemingly the insurance company believes that a homeowner is, much like a married man or woman versus a single, more grounded and thus more dependable, at least financially.

And very often insurance companies will also take your level of education into consideration when setting premiums.  Education is not one of the major markers, but, if you have earned a high school diploma but gone no further with formal education, you will most likely be charged a little over two hundred dollars while a driver who has completed a Bachelor’s Degree will pay a few dollars less.

Another very important factor that contributes to premium cost is, of course, the types of coverages that you choose to add to your policy.  For example, the current Florida average annual premium for Bodily Injury/Property Damage coverage at $100K/$300K/$100K (comprehensive/collision) is slightly less than two thousand dollars.  Lower the coverage, and the premium goes down accordingly.  It is crucial that you determine the levels of coverage that you currently require, both mandatory and optional, and shop around to find the best premium to purchase that level of coverage.

It may seem odd to you that automobile insurance companies consider a driver’s credit history when setting premium costs.  What the companies use the credit report evaluation for is to gauge a client’s probability of promptly paying the premiums going forward.  The theory is that drivers with better credit histories will pay their premiums fully and on time.  Also, studies reflect that this type of driver tends to file fewer claims which is, of course, better for the insurance company’s bottom line.  In Florida, a very low credit score currently earns an annual premium of over three thousand dollars, while an exemplary score is assigned a premium of about half as much.

Lastly, as we all know, being on the road can be risky for even the very best driver.  Accidents happen.  And, if the accident turns out to be your fault, the premiums on your policy are almost certain to go up at the discretion of your insurance company.  One way to avoid this is to drive dependably and defensively and to obviously avoid driving under the influence.  But, should you be convicted of irresponsible driving, (speeding, reckless driving, and so forth), your Florida premium will increase by an average of two to just under three thousand dollars, depending on your policy.

So, as you can see, calculating the average annual premium on a Florida automobile insurance policy depends on a number of factors.  Florida’s insurance costs are higher than a number of other states but thankfully not as high as others, and the best way to tailor a policy that fits your needs and also your budget is to gather your information and compare rates.