New Yorkers and Floridians pay the most — and least of all — for auto insurance

Florida residents, on average, pay the second highest share of their income on auto insurance premiums, according to statistic data from price comparison site Bankrate.com.

This statistic, based on the website’s true cost of car insurance in the 2022 Annual Report, compares 40-year-old drivers with clean driving records and good credit in all 50 US states and Washington, DC.

In Florida, the average driver spends 4.42% of their income on auto insurance. That’s just behind Louisiana, where drivers must spend 5.26% of their income.

In a dollar-for-dollar comparison, Florida drivers pay an average of $2,762 annually for what Bankrate describes as full coverage. New York was the most expensive state, with the same driver paying $2,996 annually. Louisiana ranked third with a price of $2,864. Drivers in Maine, the least expensive state, paid an average of $876.

The Florida average cost was nearly $400 more than the $2,364 average in Bankrate’s 2021 report. It also far exceeds the national average of $1,771 or 2.57% of annual income.

The Bankratt report shows that auto insurance costs in busy, crowded, and crowded South Florida are higher than the state average. In the metro area made up of Broward, Palm Beach, and Miami-Dade counties, the average premium was $3,508.

Prices have been calculated based on the assumptions that each customer drives a 2020 Toyota Camry, commutes five days a week and drives 12,000 miles annually.

The study also assumed that each driver carried full coverage. This is defined as: $100,000 bodily injury liability per person, $300,000 bodily injury liability per accident, $50,000 property damage liability per accident, $100,000 bodily injury to uninsured motorists per person, $300,000 uninsured bodily injury On them for each accident, $500 for the collision deduction, and $500 for the comprehensive deductible.

Historically, the state has come near the top of car insurance price comparisons, regardless of which organization produces the comparison. In 2018, price comparison site The Zebra found that Florida was the fifth most expensive state. A decade ago, Florida’s average premiums for liability coverage were the second highest in the country, according to the Property Accident Insurance Association of America.

Why Florida?

Bankrate.com’s Kate Deventer wrote in a blog post in April that reasons Florida drivers pay so much include the state’s exposure to extreme weather like tropical storms, hurricanes and hurricanes. Deventer also noted a 20.4% increase in the proportion of uninsured drivers in the state. This means that one in five vehicles on the road is driven by one of the insurance violations, which increases the costs of coverage for uninsured drivers.

Mark Friedlander, director of corporate communications for the industry-funded Insurance Information Institute, also noted high levels of medical billing fraud related to phasing accidents and state malpractice insurance laws, and a state law provision requiring insurers to replace damaged or damaged ones. Cracked windshield with no deduction.

“Contractors approach motorists at malls, gas stations, and car washes and offer to deal with replacing damaged windshields in exchange for a gift card,” he said. “The motorist is required to sign an AOB (Waiver of Benefits),” which gives the contractor the right to sue the insurance company on behalf of the policyholder.

“Sometimes minor repairs get paid thousands of dollars to insurance companies,” he said. “Many cases involve claims against the insurance company while the car owner does not even know that a lawsuit has been filed.”

Auto insurance rates across the country have skyrocketed after temporarily dropping when the COVID-19 pandemic forced people to stay indoors. Friedlander said mileage and accidents are down sharply, and the auto insurance industry has returned about $14 billion in cashback and account credits.

But motorists quickly resumed their old driving habits after the economy reopened, and traffic deaths have also increased after decades of steady decline.

The number of car-related deaths in Florida increased from 3,332 in 2020 to 3,629 in 2021, according to the Florida Department of Highway and Automobile Safety. That’s roughly a 10% increase in insurance costs and premiums, Friedlander said.

Inflation also contributes to increasing prices. “What we’re seeing now is a doubling year-over-year increase in repair costs – driven by a supply chain shortage of spare parts and rising labor costs,” he said.

The rates are even higher than state rates in South Florida due to several factors, Friedlander said:

The number of accidents increased and the risk increased

Most expensive auto repairs due to higher labor costs

Higher level of vehicle-related crimes, such as theft and vandalism

Heavier Traffic Patterns

High health care costs

More aggressive driving

what should be done

The Bankrate.com study notes that while drivers cannot change these cost factors themselves, they can keep their own costs as low as possible by avoiding “life events” that can lead to significant price increases.

The study showed that allowing your credit score to drop from “good” to “poor” can raise average auto insurance premiums in Florida by $2,715.

Costs can also increase if: You get a speeding ticket (+ $514); Causing a Car Accident (+ $1,046); Let your insurance cover lapse ($448+); owe a DUI ($1,695), or put a teen driver on your policy ($3,043).

Besides avoiding such events, experts suggest a number of ways motorists can try to reduce their premiums. If you drive below the average car owner, you may consider policies that allow you to pay with the mile. This usually requires letting insurance companies monitor your driving through smartphone apps that connect to the odometer to record the miles traveled.

Other savings are available by buying and paying online, paying for your term in one go, and buying in advance.


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