Florida drivers spend more of their salary on car insurance than almost anyone else in the United States
It’s according to a new Bankrate.com report which says Sunshine State drivers spend 4.42% of their annual income on car insurance.
The only state that spends a higher share of its money on vehicle insurance is Louisiana at 5.26%.
The report cites the propensity for hurricanes and flooding in these states, which can drive up costs.
The True Cost of Auto Insurance study indicates that, on average, drivers nationwide spend $1,771 per year on comprehensive auto insurance, or 2.57% of their annual income.
However, Florida drivers exceed that amount, spending an average of $2,762 per year for comprehensive coverage.
Relative to their salary, drivers in Florida’s largest metropolitan areas pay some of the highest car insurance costs in the country.
Among metropolitan areas in the United States, drivers in Tampa and Miami spend the highest percentage of their income on car insurance, costing them 4.49% and 5.58% of their annual income, according to the ‘study.
Orlando also ranked low at 3.74%, just ahead of Detroit Pilots at 4.38%.
Hawaii and Maine are ranked as the states with the least expensive insurance relative to a resident’s income.
Bankrate data showed drivers in the state of Aloha pay an average of $1,206 per year, or just 1.41% of their earnings, while drivers in Maine pay $876 per year, or 1. 44% of their income.
The study used quoted rates for 40-year-old drivers with a clean driving record, good credit in all zip codes and carriers in all 50 states and Washington, D.C.
The data was compiled with the following total coverage limits:
- Civil liability of $100,000 in bodily injury per person
- Civil liability of $300,000 per accident
- Civil liability of $50,000 in property damage per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 aggregate deductible
The rates were calculated based on the profile of a driver who owns a 2020 Toyota Camry, commutes five days a week, and drives 12,000 miles a year.
Robert Norberg, president of Arden Insurance Associates, said what sets Florida apart from other states is the growing number of accident claims and litigation.
“Carriers still face a lot more lawsuits,” Norberg said. “We have tons and tons of more people coming into the state – obviously – so there will be more accidents, more people getting insurance.”
Katelyn Haire lives in The Acreage and said her car insurance premium hasn’t gone up, but with a teenage driver on the policy she wouldn’t be surprised.
“I don’t know where we would save money honestly,” Haire said.
Norberg advises drivers to check with their carrier for owner and bundle discounts.
If you’re open to it, many insurance companies offer discounts if you allow them to track your driving habits, so if you’re working from home now and driving less, that could mean big savings.
Currently, the minimum state auto insurance standards are $10,000 for property damage for other drivers and $10,000 for personal injury coverage for yourself.
Insurance agents advise against getting the minimum requirements and say it can cost you more in the long run if you get into a wreck.
Experts also recommend researching better rates and considering using an agent.
Scripps content only 2022