The truth about Auto Insurance in Florida

There’s no question that auto insurance in Florida keeps getting more and more expensive. Everyday we get calls asking the reason why, and even though these are some of the reasons, there are many other reasons why auto insurance in Florida tends to be more expensive compared to other states.

Here are some factors that contribute to the higher insurance rates in Florida:

  1. High population density: Florida has a large population, and densely populated areas often experience more traffic congestion and a higher frequency of accidents. With more accidents occurring, insurance companies have to pay out more in claims, leading to higher premiums for policyholders.
  2. Frequent severe weather events: Florida is prone to hurricanes, tropical storms, and heavy rain, which can result in significant damage to vehicles. Insurance companies take into account the higher risk of weather-related incidents when setting rates for comprehensive coverage.
  3. No-fault insurance system: Florida operates under a “no-fault” insurance system, which requires drivers to carry Personal Injury Protection (PIP) coverage. This coverage pays for medical expenses and lost wages regardless of who caused the accident. The requirement for PIP coverage can contribute to higher insurance premiums.
  4. Fraudulent claims: Florida has experienced a significant number of fraudulent insurance claims, including staged accidents and inflated medical bills. Insurance companies factor in the increased risk of fraudulent activity when setting rates, which can contribute to higher premiums for all policyholders.
  5. Expensive medical costs: Medical costs in Florida tend to be higher compared to other states, and these costs are factored into the insurance premiums. Since PIP coverage is mandatory, insurers must consider the potential costs of medical treatments when determining rates.

Remember, it is important to assess your specific needs, financial situation, and long-term goals before purchasing auto insurance. At Deer Insurance Agency we guide you through this process and help you get the policy that works best for you and your family. Start your quote process HERE and provide us with the information we need to provide you with a complete and honest quote for you and your family.

Deer Insurance Agency, LLC is an independent insurance agency licensed in the states of Florida, South Carolina, and Maryland. If you live in any of the States we provide insurance solutions and need an insurance program, please email us at We’ll be more than happy to help you.

At Deer Insurance Agency, you are DEER to our HEART!