Auto Insurance In Brooksville, Fl: Why So Expensive?

Florida has the most expensive car insurance in the nation, with an average cost of $3,945 annually for full coverage. This is 55% higher than the national average of $2,500. There are several reasons why auto insurance is so expensive in Florida, including the fact that it is a no-fault state with the highest percentage of uninsured drivers in the country. Florida also experiences severe weather, including hurricanes and tornadoes, which can result in costly insurance claims. Additionally, the cost of healthcare in Florida is higher than average, leading to higher insurance premiums. Other factors that contribute to the high cost of auto insurance in Florida include busy roadways, extra insurance requirements, high-risk drivers, and the age and location of drivers.

Florida's no-fault auto insurance laws

Florida is one of the dozen or so states that follow a "no-fault" car insurance system. This means that, after a car accident, your insurance coverage (called "personal injury protection" or "PIP" coverage) pays the medical bills and other financial losses of anyone covered under the policy (up to the policy limits), regardless of who caused the accident.

The minimum insurance coverage in Florida is $10,000 in personal injury protection (PIP) benefits and $10,000 in property damage liability (PDL) benefits. This means that, in the event of an accident, the insured would receive $10,000 of bodily injury coverage per person, with no more than $20,000 paid per accident, and $10,000 of property damage coverage per accident. PIP coverage pays 80% of medical bills, 60% of lost wages, and 100% of replacement service costs.

Florida's no-fault system doesn't apply to vehicle damage claims after a car accident. A liability claim for damage to (or total loss of) a vehicle can be made against the at-fault driver in Florida, with no limitations.

The no-fault system was introduced to reduce the number of lawsuits in relation to car accidents. However, there are some exceptions to the no-fault system. For example, if an accident causes permanent injuries, the injured party can pursue a lawsuit against the at-fault driver if the injuries are severe enough to meet the injury threshold set by law.

High healthcare costs

Florida's auto insurance rates are high for several reasons, including high healthcare costs. When individuals are involved in an accident, insurance providers use the premiums paid by consumers to help pay for their expenses. The costs covered include medical expenses from injuries sustained by the drivers and their passengers or treatments needed by the other party.

The United States spends approximately $3 trillion on healthcare per year. While healthcare costs in the country are high across the board, Florida residents pay more than average. According to the Commonwealth Fund, Florida is one of five states in the US where the average resident spends 14% or more of their income on healthcare. Insurance companies charge higher premiums to cover the high cost of medical expenses in the state.

If you are charged with a DUI, multiple at-fault accidents, or another severe driving violation, you will be required to purchase SR-22 insurance in many states. The rates for these policies are significantly higher than the average policy. However, Florida extends additional penalties to drivers with a DUI. Instead of an SR-22, these drivers must file an FR-44, which requires that they purchase coverage with 100/300/50 limits, in addition to $10,000 in PIP coverage. The high rates associated with this additional filing may contribute to why car insurance rates in Florida are so expensive. On average, a driver with a clean record pays $1,379 annually for car insurance. In comparison, a high-risk driver pays $861 more each year.

Severe weather

Brooksville, Florida, is susceptible to severe weather conditions, including hurricanes and thunderstorms, which can cause extensive damage to vehicles. These extreme weather events can result in a high number of insurance claims, leading to increased costs for insurance companies. Consequently, auto insurance providers may factor in the risk associated with severe weather when determining insurance rates for residents of Brooksville, FL, contributing to higher premiums in the area.

Florida, including Brooksville, experiences Atlantic hurricane seasons, which can lead to significant property damage. The formation of tropical depressions and storms in the Atlantic poses a threat to the region. The potential for hurricanes and the associated risks necessitate preparations and can impact insurance rates.

The weather in Brooksville can be extremely humid, with indoor humidity levels reaching as high as 90%. While humidity itself may not directly impact auto insurance rates, it can contribute to an overall climate that fosters severe weather conditions, including thunderstorms and hurricanes.

Thunderstorms are a frequent occurrence in Brooksville, as indicated by the city's weather forecasts. These storms can bring strong winds, heavy rainfall, and lightning, all of which pose risks to vehicles. Strong winds can cause falling debris, while heavy rain can lead to flooding, and lightning strikes can result in vehicle damage or electrical issues.

The combination of high humidity, frequent thunderstorms, and the threat of hurricanes creates an environment where severe weather is a significant concern. Insurance companies take into account the potential for weather-related damage when calculating insurance rates. As a result, residents of Brooksville may face higher auto insurance premiums due to the increased risk of weather-related vehicle damage and subsequent insurance claims.

High number of uninsured drivers

Florida has the highest rate of uninsured drivers in the US, with about 26.7% of all drivers being uninsured. This is significantly higher than the national average of 13%. The number of uninsured drivers in Florida has been increasing, with the state seeing one of the largest increases in uninsured motorists from 2017 to 2020.

The high rate of uninsured drivers in Florida is likely a contributing factor to the state's high auto insurance rates. When there are more uninsured drivers on the road, the risk of being involved in an accident with someone who doesn't have insurance increases. This means that insured drivers may have to rely on their own insurance policies to cover the costs of an accident, even if they are not at fault.

To address this issue, many insurance companies in Florida offer additional coverage for uninsured and underinsured motorists. This extra coverage protects insured drivers and their families in the event of a collision with an uninsured driver. While this added coverage may cost more, it can provide valuable peace of mind and financial protection in the event of an accident.

The consequences of driving without insurance in Florida can be serious, including fines and license suspension. However, these consequences do little to help victims of accidents caused by uninsured drivers. In most cases, injured victims cannot sue the uninsured driver in court, and the driver's limited financial resources may not be worth pursuing. This leaves insured drivers vulnerable and underscores the importance of carrying adequate insurance coverage.

High-risk driver profiles

Several factors can contribute to a driver being deemed high-risk, and these factors can be grouped into driving factors and non-driving factors.

Driving Factors

• At-fault accidents: If a driver has a history of accidents, insurers see them as someone who may take risky moves on the road, resulting in accidents and claims.
• Serious violations: A DUI, for example, is considered a serious violation. Drivers under the influence of alcohol can have impaired judgment, coordination, and reaction times, increasing the likelihood of accidents.
• Speeding: Speeding increases the risk of greater damage in the event of an accident.
• Reckless driving: This is a broad term that covers driving with a willful or wanton disregard for the safety of persons or property. It can include various risky behaviours such as accelerating too quickly or slamming on the brakes.

Non-Driving Factors

• Poor credit: In most states, a low credit score is associated with a higher chance of filing insurance claims.
• Age: Teenagers and senior citizens are generally considered high-risk due to their age group's higher accident rate. Teen drivers are inexperienced, while senior drivers have slower reaction times and are more susceptible to injuries.
• Location: Living in an area with a high rate of claims can increase your risk profile. This could be due to factors such as congested traffic, high crime rates, or severe weather conditions.

Frequently asked questions