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FLORIDA - Florida drivers are now paying the second-highest auto insurance rates in the country, with costs expected to rise again in 2026 despite a slight decrease this year.
According to recent data reported by MarketWatch Guides, auto insurance premiums in Florida have dropped roughly 9% in 2025.
That reduction saves drivers about $300 annually.
Still, Florida ranks as the second-most expensive state in the country for car insurance, with full coverage averaging over $3,200 per year.
Experts say Florida’s high costs are driven by a dangerous mix of dense traffic, elevated accident rates, uninsured drivers, and the state’s ongoing exposure to hurricanes and severe weather events.
Insurance companies say natural disasters often result in expensive claims due to flood damage and vehicle debris, forcing them to raise premiums across the board.
Even drivers with perfect records are feeling the sting.
Insurers are adjusting after major financial losses during the past two years, when rising vehicle repair costs and weather-related damages pushed the industry into what many analysts called a crisis.
The outlook for next year appears bleak.
Experts project premiums in Florida could rise between 6% and 9% in 2026, bringing the average cost closer to three thousand five hundred dollars annually.
Only Louisiana currently has higher rates than Florida, making the state one of the costliest places to insure a vehicle in the United States, regardless of driving history or vehicle type.