Drivers in the state spend a larger portion of their income on coverage than most other Americans.
Florida auto insurance customers are paying more for their car coverage than nearly any other drivers in the United States.
To keep their coverage, Floridian motorists must send more of their paychecks to pay their premiums.
This, according to the data published in a new Bankrate.com report, suggests that Sunshine State residents are paying more of their income for their auto insurance than other drivers across the country. In fact, an average of 4.42 percent of Florida drivers’ annual incomes are spent on their premiums.
There is only one state in the country in which drivers pay a larger portion of their annual income toward their premiums. Louisiana drivers pay 5.26 percent of their income to their car insurers. The recent report pointed to the increased risk of hurricanes and flooding in Louisiana and Florida to help explain why the cost of providing coverage – and therefore purchasing it – is higher.
Other factors that play into the higher auto insurance rates, but hurricanes are increasingly important.
The report, called the “True Cost of Auto Insurance” stated that on average, motorists across the country are spending $1,771 per year for full coverage, which represents about 2.57 percent of the average American income. That said, Florida drivers are clearly well above that amount, spending an average of $2,762 for the same amount of coverage.
When compared to the average Floridian’s salary, drivers in the state’s largest metropolitan areas are paying some of the highest amounts in the country to ensure their vehicles are covered. Tampa and Miami are the metropolitan areas in the country in which the largest portion of income is spent on car premiums. There, 4.49 percent and 5.58 percent of annual income are spent, respectively, said the study.
Orlando was among the areas paying less, at 3.74 percent, which was still notably higher than the country’s average. Still, it was still well below drivers in Detroit, Michigan, who paid 4.38 percent of their incomes toward their auto insurance premiums. On the other end of the spectrum, Hawaii and Maine were the states where drivers paid the smallest portion of their income into their premiums.