Auto insurance premiums in Florida are much lower than the national average as per survey reports


19As per the recent reports Florida’s auto insurance premiums are much lower than the national average this year. The average premium this year is 5% less than the national average. The premium for a select group of drivers is at $1,476 while the national average is $1,561.

At least half a dozen bills have been proposed by the lawmakers this year and it is aimed at reducing fraudulent practices in the PIP claims. Most legislators who have supported the bill agree that urgent reforms are needed in the bill to reduce the high insurance premiums that Floridians are asked to pay each year.

But some of the attorneys, consumer advocates, and healthcare providers claim that certain provisions in the legislation might actually cause problems for policyholders who are involved in accident claims with their insurers.

Florida was at the 25th spot last year and has now moved down to the 29th spot as the average premium is now lesser than the national average which is at $1,561.

However, as per the more comprehensive data provided, by the National Association of Insurance Commissioners, Florida ranks much higher than the other states. Between 2004 and 2008 the average Floridian paid $1,059 for auto insurance while, the national average at that time was $815.

The areas that had a higher average were New Jersey, District of Columbia, New York, and Louisiana. Floridians paid $1,055 in 2008 and $1,062 in 2004.

Quadrant Information Services had been hired by the group to conduct the survey. The average premiums are calculated after surveying around 2,400 cars and by taking the insurance rates from 6 large insurers, and from 10 zip codes per state representing the rural and the urban areas.

These rates are basically for a 40-year old male driver who has to commute 12 miles to get to work has an uninsured motorist coverage with a $500 deductible on comprehensive and collision coverage. The insurance cover would mean $100,000 per person for injury liability, $300,000 for all the injuries and another $50,000 for damage to property as a result of the accident.

According to the survey reports, the most expensive states were Oklahoma, Montana, Louisiana, Michigan, and Washington D.C. where the premiums ranged from $2,146 to $2,541. The least expensive were Tennessee, Wisconsin, Maine, South Carolina, and Vermont where premiums were in the range of $955 t6o $1,146.