Florida's Auto Insurance Ranks Second Highest with Rising Rates Ahead

Florida holds the position as the state with the second-highest auto insurance premiums in the U.S., averaging over $3,200 annually despite a 9% reduction in 2025 that saved drivers about $300. The state faces high insurance costs due to dense traffic, frequent accidents, a high number of uninsured motorists, and exposure to natural disasters such as hurricanes, which contribute to costly claims and increased premiums. Insurers are recovering from financial losses incurred over the last two years caused by rising vehicle repair costs and weather-related damages, leading to anticipated premium increases of 6% to 9% in 2026, pushing average costs near $3,500 annually. This trend places Florida just behind Louisiana, the state with the highest auto insurance rates, highlighting Florida's challenging insurance market environment regardless of driver history or vehicle type.