An analysis recently posted by Bankrate says Florida is the second most expensive state in the nation for full-coverage auto insurance, in a list topped by Louisiana.
The report, “The True Cost of Auto Insurance in 2022,” notes that auto insurance rates in Florida averaged $2,762 per year for comprehensive premium coverage, compared to the national average of $1,771 per year. This equates to an additional $991 for coverage in the state of Florida.
Drivers in Louisiana who pay an average of $2,864 a year spend the largest proportion of their money on auto insurance, at 5.26% of their income, followed by Florida at 4.42%.
MIAMI TOPS THE LIST
And, of the metro areas analyzed, Miami and Tampa drivers spend the highest percentage of income on their auto insurance, spending a staggering 5.58% and 4.49% of their annual income on auto insurance coverage, respectively.
One reason these states may experience high actual costs is that hurricanes and flooding are common, which can increase insurance rates. Coupled with the relatively low median incomes in both states, residents end up spending a significant portion of their budget on car insurance.
Among the Florida cities that pay the most for premium car insurance are Miami, with $3,508; Hialeah, with an average of $3,405 annually and Tampa with $3,017.
Floridians spend 40.4 hours in congestion each year, which is about 10 hours more than average. Florida also ranks eighth in highest population density, which can contribute to crowded roadways and accidents, according to Statista.
The state also ranks third among those with the deadliest car accidents, only surpassed by Texas and California, according to a study referred to by Bankrate.
Auto insurance rates vary from state to state, as there are a number of factors that affect premiums. Factors can include road conditions, the number of drivers and the population of a city, the percentage of uninsured drivers, and any other factors that increase or decrease drivers’ overall risk, such as accident claims in the area and weather-related damage.
HIGH SPENDING IN FLORIDA
The high prices that are being registered in the country have reached really important figures in Florida, one of the states most impacted by inflation and with one of the largest annual spending averages in the United States.
Bankrate compiled a list of average expenses in the state, among which car insurance stands out in fourth place, after expenses for rent, food and child care.
The state also ranks among the top in costs to rent and own housing. For example, the price of rental homes in Miami skyrocketed in the last year, a period in which it rose 57.2%, the largest increase of the 50 main cities in the United States, according to a report released by Realtor.com .
There are studies that indicate that rent in Florida accounts for an average of 30% of income. “We have data that shows Floridians are the highest cost-burden renters in the country, with more than half of renters spending more than 30% of their wages on housing,” said State Rep. Fentrice Driskell.
HOW TO PAY LESS ON CAR INSURANCE
Michael Barry, director of communications for the Insurance Information Institute, consulted by NBC 6, sister channel of Telemundo 51, says you should ask about discounts. For example, a good credit score can help you save.
You could also get a discount for not driving as much during the pandemic
“If you’ve dropped below 8,000, if we’re talking maybe 7,000, 7,500 miles a year, you’re often entitled to a low-mileage discount,” Barry said.
Your premium is also reduced if you take a defensive driving course, which you can take online. There’s even a nice discount for students.