Why is car insurance so high in some states of United states of America
Do you know that Florida ranks as the 5th highest state for auto insurance in the US.
According to data published by the Insurance Information Institute (III) and data collected by the National Association of Insurance commissioners (NAIC).
If we look at the most versus least expensive states, some similarities should pop out. Other reasons for higher rates should be apparent to anyone living or driving in the Sunshine State.
Population and Traffic Density
Florida ranks 9th 1
The NAIC data ranks Florida high in both Vehicles Miles per Highway Miles and Vehicle Miles per Registered Vehicle
Florida ranks #1
Influenced at least in part by traffic density accident rates are affected by other factors such as age of drivers (young and old), careless and distracted driving and the influence of alcohol and drugs.
Florida ranks 3rd
Think coastlines, hurricanes, wind and flood.
Add all that up and it automatically make it costly for the citizens. most Floridians can expect their auto insurance rates to be among the most expensive in the United States.
There are some other reasons as well but
Those are some of the reasons specific to Florida’s high insurance rates.
Other states share some of the same characteristics. However, other factors influence a states auto insurance costs (as outlined by the NAIC include):
These are the main factors as per NAIC which affects insurance costs in USA
Average insurance company expenses
Types of coverage purchased or required
Relative amounts of coverage purchased
Use of telematics
Vehicle theft rates
Auto repair costs
Medical and legal costs
Per capita disposable income
State rate and form filing laws
State auto safety laws