Florida ranked 2nd-highest for auto insurance costs, study says

Florida drivers are spending a bigger portion of their wage on automobile insurance coverage than simply about everybody else within the U.S.

That is in line with a brand new report from Bankrate.com that claims drivers within the Sunshine State spend a whopping 4.42% of their annual revenue on auto insurance coverage.

The one state that devotes a better portion of its cash to insure its automobiles is Louisiana at 5.26%.

The report cited the propensity of hurricanes and flooding in these states, which can drive up prices.

The “True Price of Auto Insurance coverage” research stated on common, drivers nationally are spending $1,771 per yr on full protection automobile insurance coverage, which is 2.57% of their annual revenue.

Nonetheless, Florida drivers surpass that quantity, spending a median of $2,762 a yr for full protection.

Relative to their wage, drivers in Florida’s largest metro areas are paying a few of the largest prices for automobile insurance coverage within the nation.

Amongst U.S. metro areas, drivers in Tampa and Miami drivers spend the very best proportion of their revenue on their automobile insurance coverage, costing them 4.49% and 5.58% of their annual revenue, the research discovered.

Orlando ranked low as nicely at 3.74%, simply forward of Detroit drivers at 4.38%.

Hawaii and Maine ranked because the states with the most cost effective insurance coverage relative to a resident’s revenue.

Bankrate’s information confirmed that drivers within the Aloha State are paying a median of $1,206 a yr, which is just one.41% of their revenue, whereas Maine drivers are paying $876 yearly or 1.44% of their revenue.

The research used quoted charges for 40-year-old drivers with a clear driving document, good credit score in all ZIP codes and carriers in all 50 states and Washington, D.C.

Information was compiled with the next full protection limits:

• $100,000 bodily damage legal responsibility per particular person
• $300,000 bodily damage legal responsibility per accident
• $50,000 property harm legal responsibility per accident
• $100,000 uninsured motorist bodily damage per particular person
• $300,000 uninsured motorist bodily damage per accident
• $500 collision deductible
• $500 complete deductible

The charges have been tabulated based mostly on the profile of a driver who owns a 2020 Toyota Camry, commutes 5 days per week and drives 12,000 miles yearly.

Robert Norberg, the president of Arden Insurance coverage Associates, stated what units Florida other than different states is the rising variety of accident claims and litigation.

“Carriers are nonetheless seeing much more lawsuits,” Norberg. “Now we have tons and tons of extra individuals coming into the state — clearly — so there’s going to be extra accidents, extra individuals shopping for insurance coverage.”

Katelyn Haire lives in The Acreage and stated her automobile insurance coverage premium hasn’t elevated, however with a teenage driver on the coverage, she would not be stunned.

“I do not know the place we might minimize corners actually,” Haire stated.

Norberg advises drivers to ask their provider about householders reductions and bundling reductions.

In case you’re open to it, a number of insurance coverage corporations provide reductions in the event you enable them to trace your driving habits, so in the event you do business from home now and drive much less, it may imply massive financial savings.

As of proper now, the state’s minimal automobile insurance coverage requirements are $10,000 for property harm for different drivers and $10,000 for private damage safety for your self.

Insurance coverage brokers advise towards getting the minimal necessities and say which will value you extra in the long term in the event you get right into a wreck.

Consultants additionally suggest buying round for higher charges and to think about using an agent.

Scripps Solely Content material 2022