Florida Car Insurance: Are You Paying Too Much?

Florida’s Car Insurance Crisis: What You Need to Know Right Now

Florida car insurance rates are among the highest in the nation, with drivers paying an average of $3,874 per year for full coverage or about $323 per month. That’s 45% more than the national average. Here’s what’s driving these costs:

• Average Annual Cost: $3,874 for full coverage, $1,056 for minimum coverage
• State Ranking: 2nd most expensive state for car insurance
• Recent Trend: Rates increased 31.7% in 2023, but showing signs of decline in 2025
• Key Cost Drivers: High litigation rates, uninsured drivers (15.9%), severe weather, insurance fraud
• Good News: Major insurers announced rate decreases of 6-10.5% for 2025

If you’re a Florida driver feeling the pinch of rising premiums, you’re not alone. The state’s unique insurance landscape—combining a no-fault system, frequent severe weather, and a historically litigious claims environment—has created a perfect storm of high costs. But recent legislative reforms are finally showing promise, with some insurers reducing rates for the first time in years.

Understanding what drives your specific rate is the first step to lowering it. Your premium isn’t just about Florida’s overall market—it’s personalized based on your driving record, location, vehicle type, age, credit score, and coverage choices. A driver in Jacksonville pays an average of $2,569 annually, while someone in Miami faces $3,287. A clean record versus a DUI can mean the difference between $2,485 and $3,617 per year.

I’m D.J. Hearsey, founder and CEO of Select Insurance Group, with over three decades of experience helping Southeastern drivers steer complex insurance markets, including Florida car insurance rates that consistently rank among the nation’s most challenging. Throughout this guide, I’ll show you exactly what’s inflating your premium and the proven strategies my team uses to help clients find better coverage at lower rates.

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Understanding the High Cost of Florida Car Insurance

If you’ve ever looked at your car insurance bill and wondered why it’s so painful, you’re asking the right question. Florida car insurance rates consistently rank among the highest in the nation—we’re typically second only to Louisiana. This isn’t just bad luck; there are real, measurable reasons why Florida drivers pay so much more.

Let’s start with the hard numbers. As I mentioned in our introduction, Florida drivers pay an average of $3,874 per year for full coverage—that’s about $323 per month. For minimum coverage, you’re looking at around $1,056 annually. No matter how you slice it, full coverage in Florida costs roughly 45% more than the national average.

So what’s really driving these sky-high premiums? It’s a combination of factors unique to our state:

• High Claim Frequency: Florida sees 10% more property damage claims and a staggering 40% more injury claims than the national average. When insurers pay out more claims, they must collect more in premiums.

• Excessive Litigation: Historically, Florida’s insurance market has been plagued by a culture of excessive litigation and fraud. Over a ten-year period, 71% of claim payouts went to attorneys and public adjusters rather than to injured parties. These operational costs are passed directly to policyholders.

• Severe Weather: Hurricanes, tropical storms, and flooding mean Florida drivers file significantly more comprehensive claims. Hail claims alone are 21.7% more expensive to repair than the average comprehensive claim.

• Uninsured Drivers: With nearly 16% of Florida drivers being uninsured, responsible drivers end up subsidizing the risk, pushing everyone’s premiums higher.

• No-Fault System: Your own Personal Injury Protection (PIP) coverage pays for your initial medical expenses after an accident, regardless of fault. While designed to speed up claims, the system can contribute to higher overall costs.

Recent Trends and News: A Glimmer of Hope for 2025

Here’s where I can finally share some genuinely good news. After Florida drivers endured a brutal 31.7% average rate increase in 2023, the tide is finally turning. Florida’s top auto insurance companies are projecting an average rate decrease of 6.5% for 2025.

What changed? Legislative reforms are finally making a difference. Governor Ron DeSantis championed House Bill 837 in 2023, which tackled the litigation crisis head-on. The results are now showing up in your premiums. In February 2025, Governor DeSantis announced rate reductions from several major carriers, with some cutting rates by as much as 6% to 10.5%.

These aren’t small adjustments—they represent real savings for Florida families. While Florida car insurance rates are still high, we’re finally moving in the right direction.

Key Factors That Determine Your Florida Car Insurance Rates

Think of your car insurance premium like a personalized recipe—each ingredient affects the final result. While Florida’s overall market challenges contribute to everyone’s high costs, your specific Florida car insurance rates are uniquely yours, based on dozens of factors that insurers carefully weigh.

At Select Insurance Group, we’ve spent over 30 years helping Florida drivers understand what’s really driving their premiums up—and more importantly, how to bring them down. Let’s break down exactly what insurers are looking at.

How Your Driving Record and History Affect Rates

Your driving history is the single biggest factor in determining your rate. A clean driving record with no accidents or violations will earn you the lowest rates, around $2,357 to $2,485 annually for full coverage. However, even a single speeding ticket can raise your rates by 15-27%. An at-fault accident can cause a jump of 46% or more for three to five years. The most serious offense, a DUI conviction, can increase your premium by over 53% and requires you to file an SR-22 or FR-44 form, signaling you as a high-risk driver to all insurers.

The Impact of Your Location within Florida

Your ZIP code can dramatically affect your Florida car insurance rates. Insurers analyze local traffic density, crime rates (especially vehicle theft), and weather patterns. Dense urban areas with more accidents and crime typically have higher premiums than quieter, rural areas. For example, Miami residents pay some of the highest rates in the state (averaging $3,287 annually), while Jacksonville drivers pay significantly less (around $2,569). That’s a difference of over $700 per year based on location alone.

How Personal Details Influence Your Florida Car Insurance Rates

Beyond where you live and how you drive, insurers also consider who you are. These personal characteristics help them predict your likelihood of filing a claim.

• Age and Experience: Young and inexperienced drivers face the highest premiums due to statistically higher crash rates. A teen driver can add thousands to a policy. Rates typically decrease with age and experience, leveling out for drivers in their 30s through 50s.

• Marital Status: Married drivers are often seen as lower risk and may qualify for slightly lower premiums than single individuals.

• Credit-Based Insurance Score: Florida allows insurers to use a credit-based insurance score, which can have a massive impact. Drivers with poor credit may pay over 100% more than the state average, while those with excellent credit can pay 20% less. Insurers have found a strong correlation between financial responsibility and driving risk.

The Role of Your Vehicle

The car you drive is the final major piece of the puzzle. Its make, model, value, and safety features all influence your premium.

Luxury vehicles, sports cars, and high-performance models cost significantly more to insure due to higher replacement values, expensive parts, and increased theft risk. On the other hand, vehicles with excellent safety ratings and features like automatic emergency braking can earn you discounts. Common sedans, popular SUVs, and pickup trucks usually fall in a moderate price range, while compact SUVs and older vehicles with lower replacement values tend to be the most affordable to insure.

Navigating Florida’s Insurance Requirements and Coverage Options

Let’s talk about what Florida actually requires you to carry—and more importantly, what you should carry to protect yourself from financial disaster. The state’s minimum requirements might seem straightforward, but they leave significant gaps in protection.

Florida’s Minimum Required Insurance

Florida is a “no-fault” state, meaning your own insurance pays for certain damages first, regardless of who caused the crash. The state requires just two types of coverage:

• $10,000 in Personal Injury Protection (PIP): Covers 80% of your medical bills and 60% of lost wages up to the $10,000 limit.
• $10,000 in Property Damage Liability (PDL): Covers damage you cause to someone else’s property.

That’s it. Notably, bodily injury liability is not required for most drivers. You must carry proof of this insurance at all times. The penalties for driving uninsured are severe, including license and registration suspension, reinstatement fees up to $500, and personal liability for all damages if you cause an accident. You can find official details on the Florida Highway Safety and Motor Vehicles website.

Recommended Coverage Beyond the Minimum

Florida’s minimum requirements are dangerously low and will not protect you in a serious accident. We consider the following coverages essential for financial security:

• Bodily Injury Liability (BI): This is the most critical optional coverage. It protects you if you injure someone in an at-fault accident, covering their medical bills, lost wages, and legal fees. Without it, your personal assets (home, savings) are at risk. We recommend limits of at least $100,000 per person and $300,000 per accident.

• Uninsured/Underinsured Motorist (UM): With nearly one in six Florida drivers uninsured, UM is a must-have. It covers your medical bills and damages if you’re hit by a driver with no insurance or not enough insurance.

• Collision and Comprehensive: Collision pays to repair your car after an accident, while Comprehensive covers non-collision events like theft, vandalism, and storm damage—vital in hurricane-prone Florida. Lenders require these if you have a car loan or lease.

• Medical Payments (MedPay): This supplements PIP, helping to cover the 20% of medical bills that PIP doesn’t pay.

If you use vehicles for work, you’ll need specialized Florida Business Auto Insurance to ensure proper protection.

Actionable Strategies for Lowering Your Car Insurance Bill

After years of helping Florida drivers steer our state’s challenging insurance market, I can tell you this with absolute certainty: you have more control over your Florida car insurance rates than you might think. With the right strategies, you can often save hundreds of dollars annually.

The Power of Shopping Around

For the exact same coverage, different insurance companies can quote you prices that vary by thousands of dollars. That’s why shopping around is essential. However, calling multiple companies and comparing complex policies is tedious. This is where an independent agency like Select Insurance Group makes all the difference. We shop over 40 carriers for you, using our 30+ years of experience to quickly find the best rates and low cost auto insurance Florida options for your specific profile. Remember to review your policy and compare quotes at least once a year, as rates and your life circumstances change.

Discounts and Deductibles

Insurance companies offer dozens of discounts, but you often have to ask for them. Work with an agent who knows which ones you qualify for.

• Policy Discounts: Bundling your auto and Florida Home Insurance can lead to savings of 15-25%. You can also get discounts for insuring multiple cars, setting up automatic payments, or choosing paperless billing.

• Driver Discounts: A good driver discount rewards you for a clean record. Good student discounts can significantly lower rates for young drivers with a B average or better. Taking a defensive driving course can also help, especially for younger or senior drivers.

• Vehicle Discounts: Cars with modern safety features like anti-lock brakes, airbags, and anti-theft systems can earn you lower premiums.

Another strategy is to adjust your deductible—the amount you pay out-of-pocket on a claim. Raising your deductible from $500 to $1,000 will lower your premium. However, only choose a deductible you can comfortably afford to pay on short notice. The monthly savings aren’t worth the financial stress if you need to file a claim.

Frequently Asked Questions about Florida Car Insurance

Over my three decades in the insurance business, I’ve answered thousands of questions from Florida drivers. Here are the most common ones, with concise answers.

Why is my Florida car insurance so expensive with a clean record?

Even with a perfect driving record, your premium is influenced by statewide factors beyond your control. Insurance is a shared pool, so your rate reflects Florida’s high number of uninsured drivers (15.9%), severe weather risk, and historically high litigation costs. Your personal profile also matters. Factors like your ZIP code, the type of car you drive, and your credit-based insurance score can significantly impact your rate, even with a spotless record.

Is Bodily Injury (BI) liability coverage mandatory in Florida?

No, bodily injury (BI) liability coverage is not required for most personal vehicles in Florida, which is unusual. The state only mandates Personal Injury Protection (PIP) and Property Damage Liability (PDL). However, skipping BI is a massive financial risk. If you cause an accident that injures someone, you are still personally responsible for their medical bills and legal fees, which can amount to hundreds of thousands of dollars. We consider BI coverage absolutely essential and recommend carrying limits of at least $100,000 per person and $300,000 per accident.

How often should I compare car insurance quotes?

We recommend reviewing your policy and comparing quotes at least once a year. Insurance rates are constantly changing, so the best deal last year may not be the best deal today. You should also shop for new quotes whenever you experience a major life event, such as moving to a new ZIP code, buying a new car, getting married, adding a teen driver to your policy, or when an accident or ticket falls off your record (typically after 3-5 years). Working with an independent agent makes this annual check-up quick and easy.

Find Your Best Rate and Get Covered

Navigating Florida car insurance rates doesn’t have to feel overwhelming. Yes, the costs are high. Yes, the regulations are unique. And yes, there are countless factors affecting what you pay each month. But here’s what I want you to remember: you have more control than you think.

Throughout this guide, we’ve unpacked the complex web of factors driving Florida’s insurance costs—from severe weather and uninsured drivers to litigation costs and your personal driving record. We’ve explored how your location, vehicle type, credit score, and coverage choices all play a role in your premium. Most importantly, we’ve shown you actionable strategies to lower your costs without sacrificing the protection you need.

The truth is, finding the right coverage at the right price isn’t about settling for whatever rate comes your way. It’s about understanding your options and having someone in your corner who knows how to steer this market.

That’s where Select Insurance Group comes in. For over 30 years, we’ve been helping drivers across the Southeast—including right here in Florida—find better insurance solutions. We’re not captive to any single carrier, which means we’re free to shop your coverage across more than 40 different insurance companies. We do the comparing, the negotiating, and the legwork so you don’t have to.

Think of us as your personal insurance advocates. We know which carriers are offering the best rates right now. We know which discounts you might be missing. And we know how to structure your coverage so you’re protected where it matters most, without paying for coverage you don’t need.

Your next step is simple. Reach out to us for a personalized quote. Whether you’re in Tampa, Kissimmee, South Orlando, or West Orlando, we’re here to help. We’ll review your current situation, answer your questions, and show you what’s possible when you have an experienced team shopping the market on your behalf.

Contact our Tampa insurance agency to get a personalized quote today. You can also reach our Insurance Agency Kissimmee, Insurance Agency South Orlando, or Insurance Agency West Orlando locations.

Don’t let high Florida car insurance rates keep you from getting the coverage and peace of mind you deserve. Let’s work together to find your best rate and get you properly covered.