ST. PETERSBURG, Fla. — With ongoing inflation and above-normal prices in the housing market, Floridians continue to feel the squeeze on their wallets.
Adding in the ongoing insurance crisis in the Sunshine State, it might not surprise you that Florida has pricey premiums putting the state at No. 1 for the most expensive state for car and home insurance.
Two recent studies released by Insurify and FINN examine just how much money Floridians are forking over in order to have insurance coverage.
Just how much are people in Florida paying?
According to Insurify, on average Floridians are paying $7,788 every year just on home insurance coverage. That’s nearly $1,000 more than what people are paying in the next-highest home insurance market — Oklahoma, where people pay an average of $6,853 each year.
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Louisiana comes in at the No. 3 spot with people living there paying $5,353 each year on average.
“Home insurance rates are increasing for several reasons, including inflation, climate change, higher material costs, supply chain issues, and increased claims for fire and water damage,” Insurify said in its report.
Insurify adds things such as your credit score, ZIP code and needed coverage level also affect how much you’ll actually pay for your home insurance.
Florida also leads the United States in terms of paying for car insurance. On average, Florida drivers are shelling out $2,560 each year, according to data from FINN.
In comparison, the national annual average is $1,682.
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The reason? Florida has the highest rate of uninsured drivers across the country. FINN says about 20 percent of drivers “lack even minimum liability insurance, pushing costs onto insured drivers through higher premiums.”
Over the last 10 years, car insurance rates in Florida have increased about 88 percent, more than any other state in this time period.
Looking ahead, FINN projects things will get worse for Floridians in the car insurance market. By 2033, Florida drivers are expected to pay an estimated $4,813 premium each year. This hinges on whether current trends continue.
“Car insurance costs in the state will increase as climate change causes increasingly severe weather events, increasing the risk of damage to vehicles and pushing up premiums,” FINN said in its report.