Any newcomer to the state is usually shocked to see the outrageous auto insurance rates Florida. Many times new residents are forced to trade in their high end cars for something more economical just to get an auto insurance policy that is affordable.
For residents who have been here for a while, even middle income families with very comfortable incomes shy away from buying new or very expensive cars. It's not the car payment that causes the financial burden - it's the auto insurance premium for the car.
Insurance rates of all types are some of the most outrageously expensive in the nation. Because of the overall demographic makeup, the insurance companies assume a high risk when they issue coverage. In south Florida especially, where over half the population is over 65, almost every teenager drives, and the roads are rife with illegal drivers who have no license and no insurance, auto claims cost the insurance industry billions of dollars a year.
Of course, it's not the insurance companies who take these losses. It's the consumer. Everyone in the state with an auto insurance policy is paying for all the accidents involving uninsured drivers.
One of the other issues Florida residents are forced to deal with is that Florida does not regular the safety of cars. There is no mandatory auto inspection where emissions are tested, lights are checked, or the cars themselves are looked over for parts falling off or tires that are bald. If the car can move, it's perfectly legal to be on the road.
These unsafe vehicles cause an enormous number of accidents; and who pays? You do. If you're traveling down the road and suddenly a bumper falls off the car in front of you, you run over it damaging your own vehicle - your only option is to take care of repairs yourself, or depending on the amount of damage, you may need to call your insurance company because technically this is considered a vehicular accident.
And once your car is fixed? Your insurance premium goes up even more.
Some of the newer car dealerships have even installed a house phone for customers who need an insurance quote before committing to the purchase of a new car. These areas have the phone numbers of all insurance carriers doing business in the state of Florida.
Dealers are very aware of the high premiums and they don't want you to leave the premises to think about it.
