Auto Insurance In South Florida Is Even More Expensive Than You Think

Line of new compact cars at dealership.

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While we’ll soon have a special session to address Florida’s property insurance crisis, when you next look at your auto insurance bill you might feel like Florida’s insurance crisis isn’t limited to your home. Auto insurance is expensive in Florida. It has been for decades. It’s especially expensive in South Florida. It has been for decades. But the rate of auto insurance premium increases is rising even faster than the 41-year high rate of inflation. In fact, it’s rising even faster than the rate of our in-crisis property insurance premiums as well.  

Bankrate’s annual study of auto insurance premiums shows the average price of an auto insurance premium anywhere USA is $1,771 this year. In Florida, it’s a heck of a lot more than that. Florida’s average cost for comprehensive auto insurance is $2,762 per policy, $991, or 56% higher than the national average. What’s more is that its worse, much worse, than even those figures in South Florida. The average annual premium in the Miami-Fort Lauderdale-West Palm Beach metro is now a staggering $3,508 per policy. That’s 27% higher than even the already high state average and essentially double the national average. What’s more is just how big the year-over-year increases have been.  

  • The average increase in auto insurance premiums in South Florida this year – about 17% 

Florida’s auto insurance inflation rate is more than double our 41-year high overall inflation rate. While Florida’s property insurance crisis is being driven largely by legal abuses, Florida’s property insurance system – South Florida’s record high auto insurance premiums are literally being driven higher by us. And those around us. A combination of inflation making repairs more expensive along with an increase in auto insurance claims have left us with a brutal environment for auto insurance policies as well. And remember, those increases are based on the norms. If you do have a claim, or traffic citation – look out. Your increase will likely shoot far higher than that. Unlike our property insurance market, which is in crisis due to a combination of select homeowners looking to take advantage of the system along with overzealous attorneys – Florida's budding auto insurance crisis is largely one of our own making. And it’s up to us, and those around us, to fix it through better driving behavior.  

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