New York and Florida Drivers Could Pay Over $4,000 For Car Insurance

This coming year, auto insurance rates are set to rise significantly nationwide, but nowhere higher than in the states of New York and Florida. According to a recent article by Forbes Advisor, New York and Florida have some of the highest car insurance rates in the country, being the only states with annual rates over $4,000. New York scores the top spot in terms of most expensive car insurance at $4,769, while Florida is just behind at $4,326.

So what makes auto insurance so expensive in these states — and what is there to be done about it? We’ll dig into some of the reasons behind this major increase and give some strategies on how to deal with your rising auto insurance premiums.

What’s Driving Up Car Insurance Rates in New York and Florida?

First, let’s take a look at what’s driving up car insurance rates in these two states in particular:

Wherever there’s high traffic density, there are more opportunities for accidents to occur, and as a result, car insurance rates tend to go up. Both New York and Florida have famously dense traffic.

In Florida, a few factors contribute to higher insurance rates:

• The state is prone to hurricanes and other extreme weather events, which can do a lot of damage to vehicles.
• Drivers in Florida must carry personal injury protection (PIP) insurance in addition to regular auto insurance.
• Uninsured drivers are a major problem in Florida — about 20% of the drivers in the state are uninsured, as compared to the 12% average nationwide. Uninsured drivers make car insurance more expensive for everyone.

In New York, some of the factors affecting auto insurance costs include:

• New York is a no-fault state, which means motorists in New York file a claim with their insurance company regardless of who is at fault. This means New York drivers also pay extra insurance, similar to Florida drivers.
• Having car insurance often includes coverage for medical costs due to injury, and health care costs in New York are even higher than the already-high national average. Citizens of New York pay the eighth-highest health care costs in the nation, and that will be reflected in car insurance premiums.
• The urban areas of New York are particularly hazardous when it comes to vehicle theft and vandalism, due to the density of population in cities like NYC.

Other Factors Affecting Car Insurance Rates

While some of these causes are state-specific, there are other circumstances driving up auto insurance premiums around the country. For example, due to ongoing supply chain issues, replacement motor parts are often more expensive to obtain. This is on top of the issue of cars themselves becoming more sophisticated and high-tech — today’s vehicles often have expensive computerized and electronic systems that make them much more expensive and difficult to repair than the autos of yesteryear. The increase in extreme weather events has also contributed to higher insurance costs, as many insurance companies are now making record payouts for the damage done by things like hurricanes, tornadoes, wildfires, and more.

The Lowest (and Highest) Auto Insurance Rates

Now let’s take a look at the lowest and highest insurance rates for each city. In New York, it will come as no surprise that New York City is the most expensive place for car insurance, at $4,545 a year. The cheapest is Rochester at $1,567, which is quite close to the national average. As for Florida, the most expensive city is Miami at $3,938, while the least expensive city is Jacksonville at $2,745.

What You Can Do to Lower Rates

Knowing what’s behind the increase in your Florida or New York car insurance is one thing, but what can you do to help bring those costs back down? Fortunately, there are some tried-and-true strategies for mitigating the damage of high insurance premiums.

First, do your best to avoid traffic violations. This may seem obvious, but it’s worth remembering that getting any sort of citation is going to bring your insurance rates up — and getting in an accident where you’re at fault is going to have serious consequences. In addition, Florida is unusually tough on DUI violations.

It’s also smart to shop around and compare quotes. For example, Progressive provides the best cheap car insurance in New York, according to Renata Balasco at The Zebra. You don’t have to stick with your existing carrier just because you’ve been with them a long time.

Some other tips include:

• If you don’t drive very much, consider switching to a pay-per-mile model for your auto insurance.
• If you’re a homeowner, bundle your home and car insurance for a discount.
• Maintain a good credit score (most insurers will factor this into how they assess premiums).
• If you’re in the position to purchase a vehicle, consider one that’s cheaper to insure.