Florida drivers pay some of the highest auto insurance premiums in the United States, according to a recent MarketWatch study. The 2025 data shows that while average rates have decreased in Florida, the state still ranks second nationally for the cost of full-coverage auto insurance.
Key Findings From the MarketWatch Study
As of May 2025, the average annual premium for full-coverage auto insurance in Florida stands at $3,229. This figure represents a 9% decrease from the previous year, with a savings of approximately $303 per driver. Despite this drop, Florida’s rates are second only by Louisiana, where premiums average $3,481.
The study notes that Florida’s insurance costs account for over 4% of the state’s median income, placing a significant financial burden on drivers.
Factors Impacting Premiums
Several factors are contributing to Florida’s elevated auto insurance rates.
- Accident and uninsured motorist rates: Florida experiences some of the nation’s highest accident rates alongside a substantial number of uninsured drivers. These conditions increase risk and push up premiums across the board.
- Weather risks: The state’s vulnerability to hurricanes and other severe weather events often results in flooding and storm-related damage. Insurers face higher claim volumes from such events, prompting them to raise premiums to offset losses.
- Heavy tourism and traffic: High levels of tourist traffic contribute to more congestion and accidents, further impacting risk assessments by insurers.
According to MarketWatch’s Daniel Robinson, these cumulative risk factors affect all drivers, including those with clean records, due to the overall insurance environment in the state.
Outlook for 2026
Looking ahead, MarketWatch researchers predict that auto insurance premiums will likely increase again in 2026. Estimated hikes range from 6% to 9%, potentially pushing Florida’s average full-coverage premium to approximately $3,471.
John Espenschied, founder of Insurance Brokers Group, attributes these expected increases to the lingering effects of post-pandemic underwriting challenges. From 2022 to 2023, insurers experienced considerable losses.
Nationwide Comparison
Florida’s position as the second-most expensive state is part of a broader national trend. Other high-cost states include Washington, D.C. ($3,209), Colorado ($3,171), and California ($2,967). On the lower end of the scale, Vermont ($1,624), Hawaii ($1,652), and Ohio ($1,687) report the most affordable average premiums for 2025.
Read the full ClickOrlando article for additional information.
Get the latest insurance market updates and discover exclusive program opportunities at ProgramBusiness.com.