Florida drivers spend a larger portion of their salary on car insurance than almost everyone else in the United States.
According to a new Bankrate.com report, drivers in Sunshine State spend a whopping 4.42% of their annual income on car insurance.
The only state that spends a higher portion of its money to insure its vehicles is Louisiana at 5.26%.
The report cited the propensity for hurricanes and floods in these states, which could increase costs.
The “True Cost of Auto Insurance” study found that, on average, drivers in the country spend $ 1,771 a year on full-coverage auto insurance, which is 2.57% of the total. their annual income.
However, Florida drivers exceed that amount, spending an average of $ 2,762 a year on full coverage.
Regarding their salary, drivers in the largest metropolitan areas of Florida pay some of the highest costs for car insurance in the country.
Among U.S. metropolitan areas, drivers in Tampa and Miami spend the highest percentage of their income on their car insurance, which costs them 4.49% and 5.58% of their annual income, the study found. he found.
Orlando also ranked low at 3.74%, just ahead of Detroit drivers at 4.38%.
Hawaii and Maine are ranked as the states with the most economical insurance in terms of a resident’s income.
Bankrate data showed that drivers in Aloha State pay an average of $ 1,206 a year, which is only 1.41% of their income, while Maine drivers pay $ 876 a 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, DC.
The data was compiled with the following complete coverage limits:
Taxes have been tabulated according to the profile of a driver who owns a Toyota Camry 2020, travels five days a week and drives 12,000 miles a year.
Robert Norberg, president of Arden Insurance Associates, said what distinguishes Florida from other states is the growing number of accident and litigation claims.
“Carriers are always seeing 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 buying insurance.”
Katelyn Haire lives in The Acreage and said her car insurance premium is not increased, but with a teenage driver on the policy, she wouldn’t be surprised.
“I don’t know where we’re going to cut corners honestly,” Haire said.
Norberg advises drivers to ask their carrier about discounts for homeowners and bundling discounts.
If you are open, many insurance companies offer discounts that allow you to follow your driving habits, so if you work from home now and drive less, it could mean a big savings.
Currently, the state’s minimum car insurance standards are $ 10,000 for property damage for other drivers and $ 10,000 for personal injury protection for yourself.
Insurance agents advise you to get the minimum requirements and say that it can cost you more in the long run if you get into a shipwreck.
Experts also recommend shopping for better rates and considering using an agent.