SARASOTA, Fla. (WFLA) – There is pressure from both sides to ease the financial burden on Floridians. However, disagreements remain over the approach to achieving this.
Gov. Ron DeSantis said during a visit to Sarasota that the reforms signed into law in 2023 will allow home and auto insurance companies to avoid rate hikes.
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“People sign a bill into law and the next day they think, ‘What happened?’ Well, it takes time,” DeSantis said.
DeSantis said Wednesday that these reforms have lowered premiums by an average of 6.5% this year for the top five auto insurers. Specifically, Allstate called for a 7% decline, Liberty Mutual called for a 5% decline, and State Farm called for a 4% decline.
“A lot of them are filing more and it’s likely to go down even further,” DeSantis said.
In September, it was reported that insurance company Progressive had reached its profit threshold in Florida. According to state regulations, this guarantees the policyholder’s credit.
“Thanks to Secretary (Michael) Jaworski, we secured nearly $1 billion in loans for Progressive auto policyholders,” DeSantis said.
It will show up as a credit on your bill or a refund check.
Governor DeSantis said the state’s litigation reforms also impact home and condominium coverage. The governor specifically mentioned Florida Peninsula Insurance.
“Peninsula, one of the state’s largest insurance companies, has requested the largest reduction in insurance rates in modern history for homeowners, including 12% of condominium owners, at 8.4%,” DeSantis said.
The governor said that starting in 2024, companies covering homes and condominiums have applied for lower interest rates or no changes at all. He also noted that 17 new companies have started operations in the state since the reforms were signed.
Back on Monday, Senate Democratic leaders in Tallahassee called for further action on insurance. At a press conference, both companies said addressing affordability is a top priority. Sen. Carlos Guillermo Smith, who represents part of Orange County, said there is still much work to be done.
“Look, we’ve heard a lot of big talk about holding insurance companies accountable for what they’ve done to their policyholders. Now is the time to act,” Smith said.
For the upcoming Congress, Senate Democrats have introduced legislation that would cut litigation costs and impose more regulations. They are unlikely to gain support in the Republican-led Congress.
State Republicans argue that property taxes are easier to manage than insurance because these private companies involve more regulation.
