Auto Insurance in Florida

Auto Insurance in Florida

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Florida is the third state with the largest Hispanic population in the United States and is one of the states where consumers have the most options to buy insurance products in Spanish. In this article we will describe where you can get an affordable auto insurance policy that adequately protects you. We will discuss the minimum insurance requirements established by the state and which companies offer car insurance in Florida.

What is the cheapest auto insurance in Florida?

Florida has very liberal laws regarding the minimum requirements that an auto insurance policy must cover. We never advise drivers to buy a policy with the minimum requirements, even if you are in a difficult financial situation, because many times the savings will be minimal compared to the great risk you will be assuming. The minimum insurance coverage requirements for drivers in Florida, according to the Department of Motor Vehicles are:

  • Bodily injury limits: $10,000 per person 
  • Property damage limit: No more than $10,000 per accident

The cheapest auto insurance you can get in Florida is from Geico if you get the minimum coverage for about $504 a year. It is important that you obtain quotes from several companies, as there are many factors that influence the cost of the premium and Geico may not be the most economical option for your situation. Florida, in general, is usually one of the states where car insurance is more expensive than in other states. There are many factors that influence this, including the fact that there are many drivers with little coverage on the road. 

It is worth noting that the minimum coverage required by Florida is one of the lowest in the entire nation. This means that many drivers on the road will have very low coverage policies, so if one of them is in an accident with you and you don’t have a full coverage policy, you may have a very hard time collecting payment for your damages. However, if you have a comprehensive insurance policy, your policy would pay for your damages even if the other driver was at fault and caused the accident. You would be responsible for paying the deductible, but then the insurance company will be responsible for recovering the costs of the arrangement through legal channels from the culprit of the accident.

What companies offer car insurance in Florida? 

Florida has many companies that operate in the state offering auto insurance. It is to be expected, since it is the third most populous state in the country, after Texas. NAIC, the National Association of Insurance Commissioners, publishes a report every year indicating which are the 10 insurance companies that sold the most car premiums. For 2020, these were the top auto insurance companies in Florida for an auto policy with public liability coverage (not including physical damage to the driver’s car):

CompanyMarket SharePremiums Sold in 2020 (in million dollars)Loss Ratio
Progressive21.75%$ 3,14057.60%
Allstate8.50%$ 1,27456.93%
Usea7.17%$ 1,05274.35%
Liberty Mutual2.34%$35972.09%
National General2.30%$33449.09%

In the table, you can see the loss ratio for each of the companies. This ratio is obtained by dividing the losses by the premiums collected in a year. Although this ratio does not provide enough information for a consumer to know if one insurance company is better than another, it is important to keep in mind that this is a key metric that companies use when deciding how to operate their business. That is, when we look at Geico having a loss ratio of almost 80%, well above any of the other companies in the table, it stands to reason that this company will be more conservative in writing policies in 2021. Insurance companies can be conservative in two ways:

  1. By choosing to directly decline risks OR
  2. Increasing their premiums

It is very rare for companies like Geico to decline prospects, so Geico will most likely have higher premiums in 2021.

The Florida Insurance Commissioner, with its headquarters in Tallahassee Florida, regulates all auto insurance companies in the state. Because Florida is a state with a high risk of damage caused by hurricanes, the commissioner’s resources are mostly focused on the residential and commercial property insurance market, while auto insurance takes a backseat. This can be confirmed if we look at the annual reports published by the commissioner, and on his page you can check the last report published, which was the 2019 report

What aspects of auto insurance are unique to Florida?

Since the insurance industry is regulated at the state level by an independent commissioner from each state, all states have different laws, rules, and particularities regarding the insurance industry. If you are going to buy auto insurance in Florida, you should keep in mind the following:

  • Florida is a state with “no-fault” insurance laws. This type of coverage is also sometimes known as “Personal Injury Protection (PIP)”. In states that have these laws, insurance companies are required to provide coverage for medical expenses that may arise for the driver and his passengers in an accident. 

Where should I buy my auto insurance in Florida?

Florida is one of the states that has a tool sponsored by the same insurance commissioner so that residents can compare insurance premiums directly and you can access it here. We also want to inform you that we also offer a tool where you can obtain quotes from different insurance companies for free and without any obligation. The tool can be accessed here below: