- Florida consistently ranks among the most expensive states for car insurance, with average annual costs higher than the national average.
- Factors contributing to high rates include frequent hurricanes, a higher-than-average accident rate, and Florida’s no-fault insurance system.
- Experts predict car insurance rates in Florida will continue to rise in 2025, with some estimates projecting up to a 10% increase.
Insurance is expensive in Florida. And it doesn’t only affect the hurricane-prone state’s high prices for home insurance policies. Florida has long-been one of the most expensive states when it comes to the cost of car insurance policies, too.
According to BankRate’s January 2025 data, Florida has the third-most expensive annual costs for minimum coverage in the U.S. and the most-expensive overall when it comes to the average cost for full coverage policies.
And a recent study from online insurance marketplace Insurify reported this month that car insurance prices are likely to increase another 5% in 2025, after increasing by a whopping 42% since 2022, ranking as the fifth-most expensive state in the U.S. for car insurance.
Regardless of differences in rankings, Florida almost always ranks high in every insurance market place and personal finance company’s top 10 list when it comes to the cost of car insurance policies by state. But why are the prices so high?
Here’s what to know about the average cost of car insurance in Florida, why it’s so expensive and Insurify’s prediction for rates in 2025.
Is Florida the most expensive state for car insurance?
According to Bankrate’s January 2025 data, Florida is the state with the most expensive average annual cost for full coverage car insurance, at an average of $4,171 each year, which is 58% higher than the national average of $2,638.
On Bankrate’s list, Louisiana, New York and Nevada follow behind in second, third and fourth places, respectively.
When it comes to the average annual cost for minimum coverage car insurance, Florida places as third-most expensive, behind New York and Nevada, at $1,135 each year, according to Bankrate.
Insurify’s recent study places the average annual cost for car insurance in Florida a little lower than Bankrate – but still very expensive – at $3,166 in 2024. According to Insurify’s projections, that figure is projected to jump up to $3,484 in 2025. That’s 10% higher, on top of the 9% increase from 2023 to 2024.
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Why are Florida car insurance rates so high?
According to Insurify, this hike in price is thanks to losses car insurance companies experienced with Florida customers. And it doesn’t help that Florida is a no-fault state, which means a rise in claim costs for insurers.
“Record-breaking financial losses in 2022 sent Florida’s struggling insurance market into a tailspin. The Florida insurance crisis primarily affected home insurance, but losses pushed some car insurance companies to lower their exposure in the state,” Insurify’s report says.
“The state also has a no-fault insurance system, meaning insurers pay personal injury protection (PIP) claims regardless of who’s at fault for an accident.”
According to Insurify data insights manager Chase Gardner, one of the biggest reasons Florida sees higher rates for car insurance than most other states is hurricanes, which is one of the reasons why home insurance costs in the state are also among the highest in the U.S.
“For Florida, drivers are paying quite a bit more than the national average and the reasons for that are a few: One of the biggest ones is the climate risk in the state, particularly from hurricanes,” Gardner told the USA TODAY Florida Network in an interview.
“This is the type of news that often gets coverage and makes the most headlines on the home insurance market. But these huge, damaging storms causing severe winds and flooding do affect vehicles as well. In 2024 alone, Hurricane Helene and Milton caused more than a billion dollars in damages combined.”
Gardner also highlighted that Florida sees serious car accidents more frequently than most other states, which is another driving factor behind the high cost of car insurance policies in the state.
“On top of that, there are several other driving factors, like Florida just having a higher accident and fatal accident rate per-mile-driven, compared to the average U.S. state,” Gardner said. “So that means accidents are more common and more serious in this state, also driving up car insurance premiums.”
What is the average cost of car insurance per month in Florida?
Based on Bankrate’s average annual cost of car insurance in Florida, drivers pay anywhere between $95 and $348 each month. Based on Insurify’s cost of car insurance in Florida, Sunshine State drivers pay an average of around $264 each month.
Will car insurance rates go down in 2025?
Car insurance premiums will, unfortunately, only continue to rise, according to Insurify’s report.
“Auto insurance rate increases in 2025 will likely be less dramatic than the two prior years. Insurify’s data science team projects the cost of full coverage will rise by 5% nationwide this year,” the report says.
“Florida and New York drivers, however, could see a 10% increase. Insurify projects premiums will rise between 7% and 8% in Georgia, Nevada, and Delaware.”
Insurify’s prediction for 2025 says that the average cost for car insurance in the state could climb up to $3,484 this year.
What car insurance is the cheapest in Florida?
Which car insurance provider is cheapest and best for you depends on your driving record, how old you are and other factors that determine how likely it will be for you to file a claim.
It’s important to remember that insurance companies sell you a policy hoping that they will not have to pay you. The likelier it is that you will file a claim, the more expensive the insurance will be.
Gardner says that most people shopping for insurance and comparing rates may not know that car insurance companies assess risk differently, which means one company might give you a lower rate than the other just for being you.
“Whether or not they use any sort of insurance marketplace, I think the number one thing that drivers can do right now is just compare quotes from multiple different companies,” Gardner said.
“People may not realize this, but they do rate and calculate risk differently. So one company might give you a better rate just for being you and drivers should try to take advantage of that as much as possible.”
According to Bankrate’s January 2025 data, Geico and State Farm offer some of the cheapest policies available in Florida.
“When looking at the cheapest car insurance in Florida for minimum coverage, Geico and State Farm stand out. Both companies feature average rates that are below the state average,” Bankrate says.
“Allstate and Progressive also offer robust policy options at a reasonable price.”
Here are the cheapest options for full coverage car insurance in Florida as of February 2025, according to Bankrate:
- State Farm, $258 average monthly premium
- Allstate, $333 average monthly premium
- Geico, $348 average monthly premium
- Progressive, $460 average monthly premium
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.