Why Is Auto Insurance So Expensive In Florida? - Cheap Quotes

Despite the decrease in insurance premiums in most states, Florida has averaged around 0.06% in increases. The fact is, Florida no fault auto insurance is one of the most expensive places in the United States when compared to other states. And if you are looking for a lower insurance rate, well Florida isn't the place where you want to start looking at.

So why is it that the auto insurance is so high in Florida? One of the main reasons for this is because, if you want to have your vehicle insured in Florida, you are required to have uninsured motorist insurance. This option which is mandatory, is for a lack of a better word, the plague that made the insurance so expensive.

If you ever wonder what this requirement is, the answer is this. It is an insurance option in which if you happen to be involved in an accident, with an uninsured motorist, your vehicle (if damaged) will be paid for. It is one of the conditions in which every insurance company expects will happen to you at least once, if you are a motorist in Florida.

The next reason is because of the $10,000 PIP. In itself, it is a good policy. However, it is often abused by scammers or organized fraud. The way this goes is, everyone could take advantage of the system for a price of $10,000 a pop. Victims could claim up to 80% of their medical fees in addition to 60% of their daily income, for as long as he/she is in unfit condition to return to work. There have been many cases in which these claims are false claims or simply fraud, by over-marking the medical cost.

Just these two reasons are enough to increase the monthly premiums in the state and if you started crying out how it is unfair because you are not the one abusing the system, well you are simply out of luck. Insurance companies are a business too and no business wants to be in the red by the end of the year.

So what do they do? They spread out their loses over all of their customers. That way, the company will stay in the black and the premiums will only increase in a small way for each customer. So the next time you want to complain why the auto insurance is so expensive in Florida, you might want to remember that insurance companies are a business as well and they hate to lose money.