I’ve seen a lot of talk online about home and auto insurance costs in Florida. Some people are saying really high numbers that sound like they must be exaggerating. For example, I have a 2018 Hyundai and a $370,000 home. I pay $125 each month for both my car and home insurance combined. I’m a guy in my late 20s living in the state capital, and I have all the usual coverages.
But are there actually normal, middle-class people paying $500 a month for both car and home insurance in Florida? I find it hard to believe everyone is exaggerating, but maybe those paying $500 have much more expensive homes and cars than I do, like a $2 million home and several $200,000 cars. Is this real? Or is it just that the people I hear from happen to be wealthy with really expensive things? Anyone else out there with a home and car similar to mine who can compare?
Since I’ve been driving, this has happened after big storm claims, hikes in prices, PIP claims, fake medical claims, and car theft. Florida usually has the most claims per person in the country every year. I’ve been going through the same life-streak for 35 years, mostly on.
Auto insurance in Florida is indeed more expensive than in many other states. Several factors contribute to this. They include:
High accident rates: Florida has a high number of accidents and claims, which drives up insurance costs.
Weather-related risks: The state is prone to hurricanes and flooding, increasing the risk for insurers.
Fraud: Florida has a higher incidence of insurance fraud, particularly with personal injury protection (PIP) claims.
Litigation costs: The legal environment in Florida can lead to higher litigation costs for insurers.
Regarding your specific situation, paying $125 a month for both car and home insurance combined is quite low compared to the average costs in Florida. For example, the average cost of full-coverage car insurance alone is around $288 per month.
My four-year-old Kia has never had an accident (which I caused), no claims (except for a windshield that was replaced around seven years ago), no tickets, and I pay $2300 a year. My age is 41. It’s crazy.
Florida has a high accident rate, which raises the cost of auto insurance by increasing the number of insurance claims. The large percentage of uninsured drivers in the state raises the cost of insurance for drivers who have it. Hurricanes, flooding, and other natural catastrophes are common in Florida and can cause serious damage to vehicles. Insurance companies raise rates by accounting for these risks. Insurance fraud is more common there, especially when it comes to PIP (personal injury protection) claims. Because of the “no-fault” insurance system in the state, which forces insurers to pay for certain medical costs regardless of who caused the accident, there is an increase in fraudulent claims and lawsuits. It may seem paradoxical that Florida has very low minimum insurance requirements, but because insurers must assume the risk, this frequently leads to higher premiums.
You’ve highlighted some key reasons why auto insurance in Florida tends to be more expensive:
High Accident Rates: The frequency of accidents and claims in Florida increases insurance costs.
Weather-Related Risks: Hurricanes and flooding add significant risk for insurers.
Fraud: A higher rate of insurance fraud, especially with PIP claims, impacts premiums.
Litigation Costs: Florida’s legal environment can result in higher litigation expenses for insurance companies.
Given these factors, your combined car and home insurance cost of $125 per month is notably low compared to the typical costs in Florida. For reference, the average cost for full-coverage car insurance alone in the state is approximately $288 per month. It’s great that you’re finding such competitive rates, but always ensure that the coverage meets your needs and that you’re getting value for your premiums.