Auto Insurance

The Facts

TOP FIVE STATES FOR AUTO INSURANCE COST – 2018 Averages

1. Michigan $2,611
2. Louisiana $2,298
3. Florida $2,219
4. Oklahoma $1,966
5. DC $1,876

Causes of Higher Auto Insurance Costs

High-Risk Drivers

States like Florida have a cross-section of what is known as a high-risk driver. These are:

• Student Drivers
• Elderly Drivers
• Unfamiliar Drivers

Florida’s retirement community is one of the largest in the nation, which means there is a large population of older drivers.

Lastly, Florida is a tourist destination. Among the student drivers from out of state, many visitors from all over the world drive on roads they aren’t used to in unfamiliar rented vehicles.  

These three things lead to more accidents, which causes higher insurance costs.

Nationally, fraudulent claims are a big problem. In Florida, likely due to no-fault laws, studies show medical charges related to accidents are 40 percent higher in states with such laws.

Can Dash Cams Help?

As of now, officially, no. Dashboard cameras and dashboard camera accessories do not automatically lower premiums. However, video evidence is vital to have on your side. Additionally, as dash cams become increasingly common, insurers will find that the technology works to their advantage too.