Why Is Car Insurance So Expensive in Florida?

Florida drivers pay $2,912 annually for full coverage—13% more than the national average and the third-highest rate in the country. These elevated costs affect everyone from Miami to Tallahassee, making auto insurance one of the state's biggest household expenses.

Several factors contribute to high premiums, from hurricane risks to congested highways. But the biggest cost drivers are Florida's mandatory no-fault insurance laws, its expensive health care system, its high litigation rates, and one of the nation's largest uninsured driver populations. Here's how each factor affects your payment.

Florida requires all drivers to carry $10,000 in Personal Injury Protection (PIP) coverage, paying for your own medical expenses regardless of who caused the accident. PIP coverage pays 80% of medical expenses with no deductible, meaning insurers immediately become responsible for substantial medical bills after any accident. This becomes especially expensive in Florida, where health care costs are the highest in the nation. Medicare spending per beneficiary in Florida reached $13,652 in 2020—56% more than Vermont's $8,726 average. When insurers must pay 80% of medical bills in a state where health care costs the most, every accident generates higher claim payouts.

The Coalition Against Insurance Fraud estimates insurance fraud costs Americans approximately $900 per policyholder annually in increased premiums. Florida consistently ranks among the states with the highest fraud rates, according to Insurance Research Council data, which show it had the highest rates of fraud and buildup in both bodily injury and PIP claims among no-fault states. When insurers pay fraudulent claims and legal expenses to fight them, those costs are passed on to all policyholders through higher premiums.

Florida's 1,350-mile coastline puts millions of vehicles at risk when hurricanes make landfall. Storm surge destroys vehicles in coastal areas, floods cars in low-lying zones, and flying debris damages windshields and body panels. Hurricane Ian in 2022 caused over $100 billion in total losses, with significant vehicle damage.

These extreme weather events affect rates across the state, not just in coastal counties. Insurers set premiums based on Florida's total exposure, and reinsurance costs for Florida have climbed as hurricane frequency has increased. Drivers in Miami pay $315 monthly for full coverage, while Tallahassee drivers pay $186—but even Tallahassee's rates exceed those in most other states due to Florida's overall catastrophe exposure.

Approximately 20% of Florida drivers operate vehicles without insurance, compared to the national average of 12.6%. When uninsured drivers cause accidents, insured motorists must file claims under their own uninsured motorist coverage—costs that get built into everyone's premiums.

High traffic density directly correlates with accident frequency. More vehicles mean more collisions, and congested conditions reduce reaction time. The tourist element adds complexity—visitors unfamiliar with local roads may not understand Florida's no-fault requirements, and when tourists cause accidents, Florida residents often file claims under their own coverage.

Florida requires certain high-risk drivers to carry FR-44 certificates—stricter proof of insurance than standard SR-22. Drivers convicted of DUI or other serious violations must maintain an FR-44 for 3 years with higher liability limits: $100,000 per person, $300,000 per accident, and $50,000 for property damage.

Florida has seen a 30% decrease in vehicle thefts during the first half of 2025 compared to 2024—a positive shift from its historical position as a high-theft state. In 2023, Florida recorded 46,213 vehicle thefts, the third-highest in the nation. This declining trend suggests improved law enforcement and vehicle security technologies are working. Continued improvement through 2026 could lead to premium relief for drivers with comprehensive coverage.

Florida has taken significant steps to address factors driving up insurance costs through litigation reform and market stabilization. While Florida's inherent risk factors will continue driving costs above the national average, legislative reforms have changed the trajectory. Insurance Commissioner Michael Yaworsky projects the full impact of the 2023 reforms will materialize through 2026-2027. For now, the state has shifted from unsustainable increases to meaningful rate relief.

The average annual car insurance cost in Florida is $2,912, the third-highest in the country. Weather risks, traffic density, health care costs, driver profiles and additional insurance requirements all raise rates. We explored how each factor affects car insurance rates and discussed ways for Florida drivers to find more affordable options.

MoneyGeek answered common questions about Florida car insurance rates to help you understand the different factors causing high premiums in the state:

Sample Driver Profile

We used a sample driver profile to determine average car insurance rates in Florida:

• 40-year-old man
• 2012 Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

We modified this driver profile by age, vehicle, credit score and driving record to determine averages for different driver profiles and needs.

Coverage Levels and Deductibles

Unless otherwise noted, average rates on this page are for a full coverage policy with comprehensive and collision coverage, a $1,000 deductible for each and the following liability limits (100/300/100):

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident

When minimum coverage is specified, we used the following minimum liability-only limits as mandated by Florida:

• $10,000 for property damage liability per accident.
• $10,000 personal injury protection (PIP) per person

Learn more about MoneyGeek's car insurance methodology.