Floridians Pay More for Auto Insurance Than Any Other State

The Reasons Florida Leads The Nation in Insurance Costs

Florida consistently ranks among the most expensive states for home and auto insurance. From rising premiums to policy cancellations, many residents are feeling the pressure. But what exactly is driving these high insurance costs?

While factors like urban density and weather risks contribute, the primary driver behind these high costs lies in the state’s unique insurance laws—particularly its no-fault insurance system and generous personal injury protection (PIP) requirements and the high minimum requirements. 

1. Natural Disaster Risk

Florida faces the perfect storm as it’s uniquely vulnerable to hurricanes, tropical storms and flooding. The state’s long coastline and low elevation make it especially prone to storm surges and wind damage. Insurers factor this heightened risk into premium calculations, leading to higher costs. With climate change fueling more frequent and intense storms, the risk—and the rates—continue to climb.^[1]

2. High Reinsurance Costs

Insurance companies protect themselves from catastrophic losses through reinsurance (insurance for insurers). In Florida, reinsurance costs have skyrocketed due to increased disaster claims and risk modeling. Insurers pass these costs on to consumers, further increasing how much the average Floridian pays. Insurers have requested rate increases of over 30% to help offset reinsurance costs.^[2]

3. Litigation and Fraud

Florida has a reputation for high insurance litigation rates, especially for homeowners insurance. A surge in lawsuits—often over roof damage claims—and fraudulent schemes has inflated claim costs. This applies to auto insurance as well. The Insurance Research Council estimates that one claim in ten made under Florida’s no-fault insurance system is fraudulent.^[3] Insurers face legal expenses that are several times higher than in other states, driving up rates for everyone.

4. Shrinking Market Competition

Major national insurers have pulled back or exited the Florida market entirely due to consistent losses. This leaves fewer companies to spread the risk and offer competitive pricing. With limited options, policyholders are often forced to buy coverage from smaller, less stable insurers—or the state-backed Citizens Property Insurance Corporation, which also faces financial strain.^[4]

5. Auto Insurance Specific Challenges

For car insurance, Florida’s no-fault system (requiring Personal Injury Protection coverage) contributes to high costs. Additionally, the state struggles with a high rate of uninsured drivers, staged accidents and medical fraud, all of which increase insurer expenses.

When it comes to home insurance, Florida has been experiencing a crisis for a number of years. As hurricanes increasingly batter the state, fewer insurers are able to continue to do business in Florida. 

However, as with auto insurance, what you will pay for home insurance varies across the Sunshine State. While rates remain high in the Miami area, it’s actually the Florida Keys area that dominates the most expensive home insurance rates list. Homeowners in Long Key pay $6,163 on average annually for home insurance. Many of the places on the top 10 are all in the Florida Keys. 

The Floridians with the most affordable home insurance coverage is Archer, which is in Central Florida outside of Gainesville. People in Archer pay around $2,090 on average for home insurance. This is below the national average of $3,163.

Violations and Other Things That Can Make Your Rates Even Higher

So just living in Florida is going to drive up your car insurance rates, but there are other factors that can make that increase even more stark. 

Age is a major one. If you have a teen driver on your policy expect to pay a whopping $14,534 a year for a 16-year-old. The national average for adding a 16-year-old to your policy is, a comparatively reasonable, $8,139. 

Another big one is violations. You likely know if you get a ticket, it's going to raise your rates. This is how much different violations will increase your rates in Florida. Leaving the scene of an accident is the steepest offense and will raise your insurance rates and will raise your insurance rates $2,166 a year. 

What's Being Done to Help Floridians Afford Insurance

Florida is actively addressing its insurance crisis through a combination of legislative reforms, regulatory actions and market initiatives aimed at making insurance more affordable and stabilizing the market.

1. Legislative Reforms to Curb Litigation and Fraud

In 2022, Florida enacted significant reforms to reduce litigation costs and fraudulent claims, which were major contributors to rising insurance premiums. These reforms included eliminating one-way attorney fees and restricting the assignment of benefits, measures that have been credited with reducing abuse in the system.^[5]

2. Regulatory Actions for Rate Relief

For home insurance, the Florida Office of Insurance Regulation has taken steps to moderate rate increases. In early 2025, it approved a smaller average premium increase for Citizens than requested and mandated rate decreases for about 20% of its customers, particularly in South Florida counties. These actions aim to provide immediate relief to policyholders facing high insurance costs.^[6]

3. Budget Allocations for Insurance Relief

Florida's 2024–2025 fiscal year budget includes over $600 million earmarked for initiatives to lower insurance costs. These funds support tax exemptions, grants for homeowners to fortify their homes against weather damage, and enhancements to the state's regulatory capabilities to monitor and address insurance industry challenges.^[7]

While challenges remain, these comprehensive efforts reflect Florida's commitment to resolving its insurance crisis and making coverage more accessible and affordable for its residents.

What Can You Do to Save on Insurance in Florida?

While Florida might lead the nation in auto and home insurance costs, there are some things you can do to save. 

• Bundle your home/renters/condo insurance policy with your auto policy for savings.
• Consider all possible discounts that might apply to you.
• Shop around and find the right carrier. Some insurance companies are better for teens or for drivers in certain areas. 

Methodology

This report analyzes over 32 million car insurance rates to examine how dozens of trends and risk factors affect insurance pricing nationwide.

The auto insurance rates displayed throughout this page come from The Zebra’s Dynamic Insurance Rating Tool. This proprietary insurance premium estimator uses the most recent rate filings across the United States at the ZIP code level to provide the most recent and up-to-date rate data. This data comes from Quadrant Information Services, which sources the most recent and approved rate filings across insurance companies in every state from S&P Global.

Unless other variables like age are applied, rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage at these levels:

• $50,000 per person/$100,000 per incident for bodily injury liability
• $50,000 per incident for property damage liability
• $500 deductibles for collision and comprehensive coverage

To provide insight to consumers on how specific personal factors (like age, location and coverage level) can affect your premium, this base profile is then adjusted for different factors commonly used by insurance companies.