Car insurance rates by state · No-fault states · FAQs. Robert Norberg, president of Arden Insurance Associates, said that what differentiates Florida from other states is the growing number of accident lawsuits and litigation. Several weather hazards that usually occur in Florida, such as tornados and hurricanes, can damage your car to the point that your insurance company could declare it a total loss. Among the many factors that affect your car insurance rates, where you live could be one of the most important.
The reason these states have the cheapest car insurance has a lot to do with the makeup of the state. If you're moving out of state, you should let your auto insurance company know, even if they offer auto insurance nationwide. It's good that your state has a competitive auto insurance market, that is, several national and regional car insurance companies that sell insurance. The use of a credit-based insurance score is prohibited in calculating auto insurance rates in California, Hawaii, Massachusetts and Michigan.
You'll need to change your car insurance policy to adapt it to the needs of your new state, and it's always a good time to compare prices when you have an important event in life, such as a move. Several factors explain why car insurance in Florida is so expensive, such as busy roads, additional insurance requirements, high health care costs, uninsured driver rates, and the risk of adverse weather conditions. Insurers say that drivers with higher credit scores file fewer claims, so they receive cheaper car insurance rates. Auto insurance accident lawsuits tend to lead to higher claim settlements, causing auto insurance companies to charge higher auto insurance costs to all drivers in an overly litigious state.
Over the past six years, auto insurance rates in Florida have steadily increased according to the MoneyGeek ranking, which went from being the 43rd most affordable state in terms of coverage to 46th. Many of the cheaper states also have competitive auto insurance markets, allowing drivers to compare car insurance quotes from several companies. The state also has more stringent auto insurance coverage requirements than many other states and prevents auto insurance companies from using several standard qualifying factors not related to driving, such as credit rating and zip code, when calculating premiums. States that require more types of coverage as part of an auto insurance policy may result in higher auto insurance costs.
However, if you have a car accident, you must be able to prove your financial responsibility, and the easiest way is to have an auto insurance policy.