While property insurance is a huge issue for many in the Sunshine State, it turns out that auto insurance is also a thorn in the side of many Florida drivers.
In a recent study by MarketWatch, researchers found that auto premiums in Florida have fallen around 9% in 2025, providing a roughly $303 decrease for drivers in the state.
However, the study reveals that even with the relief, Florida ranks among the highest in the country for its auto premiums.
To be specific, the study found in May that auto premiums in Florida average around $3,229, which makes Florida the second-most costly state nationwide. That’s over 4% of Florida’s median income.
MarketWatch expert Daniel Robinson provided the following explanation for why that’s the case:
“Florida drivers face average annual costs of $3,229 for full coverage policies, the 2nd most expensive in the nation. Part of the reason for this is that Florida has some of the highest accident rates and a large number of uninsured motorists. When accident figures are high but insured rates are low, premiums get more expensive for everyone to make up the difference.
It’s also critical to consider Florida’s geographic vulnerability to hurricanes and severe weather events. These storms lead to flooding and debris-related damage that strains insurers’ bottom lines due to a high number of costly claims. Insurers have no choice but to increase premiums to cover these severe damage costs.
When you consider these natural disaster risks with the state’s heavy tourism traffic and high accident rates, it becomes clear why Florida ranks 2nd nationally for expensive auto insurance premiums. Unfortunately, even drivers with clean records face significantly higher costs simply due to the collective risk environment."
Daniel Robinson
Worse yet, the study also predicts that car insurance rates are likely to rise in 2026, with an average expected rate increase between 6% and 9%.
In Florida, that means the full-coverage average for auto insurance premiums could reach as high as $3,471.
“We’re still catching up from a post-pandemic perfect storm...” John Espenschied, the founder of Insurance Brokers Group, told MarketWatch. “Insurers are recalibrating after underwriting losses that made 2022 to 2023 look like a demolition derby for their bottom line.”
Meanwhile, the full state-by-state auto insurance premium breakdown is as follows:
| Rank | State | 2025 Annual Full-Coverage Average | Change in Price (2024 - 2025) |
|---|---|---|---|
| 1 | Louisiana | $3,481 | -14% |
| 2 | Florida | $3,229 | -9% |
| 3 | Washington, DC | $3,209 | 20% |
| 4 | Colorado | $3,171 | 0% |
| 5 | California | $2,967 | 4% |
| 6 | Michigan | $2,918 | -13% |
| 7 | Nevada | $2,889 | -19% |
| 8 | Texas | $2,863 | 2% |
| 9 | New Jersey | $2,837 | 2% |
| 10 | Georgia | $2,822 | -3% |
| 11 | Oklahoma | $2,782 | -9% |
| 12 | Kentucky | $2,780 | 4% |
| 13 | South Dakota | $2,721 | 0% |
| 14 | Rhode Island | $2,670 | -5% |
| 15 | Connecticut | $2,656 | 6% |
| 16 | Delaware | $2,639 | -14% |
| 17 | Arkansas | $2,572 | 0% |
| 18 | Pennsylvania | $2,527 | 1% |
| 19 | Arizona | $2,503 | -7% |
| 20 | South Carolina | $2,497 | 10% |
| 21 | Montana | $2,492 | 5% |
| 22 | Kansas | $2,478 | 0% |
| 23 | New York | $2,460 | -7% |
| 24 | Maryland | $2,453 | 1% |
| 25 | Mississippi | $2,427 | 8% |
| 26 | West Virginia | $2,434 | -1% |
| 27 | Minnesota | $2,373 | 4% |
| 28 | Utah | $2,365 | -6% |
| 29 | Missouri | $2,343 | -9% |
| 30 | North Carolina | $2,325 | -4% |
| 31 | New Mexico | $2,312 | -1% |
| 32 | Nebraska | $2,298 | -5% |
| 33 | North Dakota | $2,272 | 3% |
| 34 | Alabama | $2,264 | 5% |
| 35 | Washington | $2,253 | 4% |
| 36 | Oregon | $2,163 | -9% |
| 37 | Iowa | $2,147 | 1% |
| 38 | Massachusetts | $2,145 | 1% |
| 39 | Illinois | $2,060 | -4% |
| 40 | Tennessee | $2,047 | -5% |
| 41 | Alaska | $1,977 | -4% |
| 42 | Wisconsin | $1,957 | -1% |
| 43 | Virginia | $1,915 | -14% |
| 44 | Indiana | $1,914 | -6% |
| 45 | New Hampshire | $1,791 | 0% |
| 46 | Idaho | $1,769 | 8% |
| 47 | Wyoming | $1,713 | -4% |
| 48 | Maine | $1,705 | 10% |
| 49 | Ohio | $1,687 | 0% |
| 50 | Hawaii | $1,652 | 4% |
| 51 | Vermont | $1,624 | 2% |