In Florida, auto insurance premiums are falling thanks to improved corporate profits and reduced costs from reforms aimed at ending excessive litigation.
All five of the state’s largest auto insurance groups, dating back to the second half of 2024, are asking Florida insurance regulators to approve rate cuts for various businesses.
Last week, Gov. Ron DeSantis attributed an average 6.5% cut for the state’s five largest auto insurance companies to the same reforms enacted in 2022 and 2023.
Among other changes, reforms have prevented windshield replacement companies from requiring customers to sign the benefits of their claims. The insurance company claimed that contractors will use the benefits signed to sue the insurance company and collect legal costs well beyond the cost to replace the broken windshield.
DeSantis vowed to maintain the reforms amid efforts by lawmakers to revive the legal costs of plaintiffs who successfully offered the insurance company’s first claim settlement.
“The ongoing reduction in car insurance fees is another indication that Florida reforms are working,” Desantis was quoted as saying in a news release from Florida Insurance Regulations. “We will protect reforms from those who try to get them back and continue fighting for the Florida people.”
Insurance Commissioner Mike Yaworski reflected the statement. “We’re happy that consumers will soon start to reassure premiums. (Office) will continue to use all their tools at their disposal to bring quality insurance products to the market at an affordable price.”
In contrast to the average 6.5% reduction requested this year, the same five insurance groups have requested an average rate increase of 4.3% in 2024 and an average increase of 31.7% in 2023.
The office has identified the top five insurance groups as Progressive, GEICO, State Farms and Allstate Services Automobile Association (USAA). Together, they offer insurance to 78% of the Florida market, according to the release.
Progressive has identified the downward costs in two recent rate filings for its Progressive Select products.
Following the request filed last December to reduce average 3%, the company wrote: “After consecutive years of increases (losses) requiring a rate increase, significant improvements in expected (losses) have been observed across multiple coverages.
Then, on July 25, the company demanded a significant 8.6% drop on Progressive Select. The company writes that losses continue to decline, particularly in claims for physical injuries, personal injury protection and uninsured drivers’ physical injuries.
The release said the office has approved requests for 46-rate approval from more than 30 companies so far this year.
This is part of the national trend, the release said. “Nationwide, the private auto insurance industry has seen multiple insurance companies relax underwriting requirements and experience the highest underwriting results over the years,” he said.
In Florida, rate drops will be driven by improved underwriting outcomes, reduced billing costs and reforms in 2022-23.
Below are some of the reduced fees requested by Florida’s five largest insurance groups: The decline follows the company name, and the decline takes effect.
progressive
– 3%, Progressive Select, December 13, 2024
– 8.6%, Progressive Select, July 31st
– 7.4%, Progressive American, January 16th
– 8%, Progressive American, June 27th
Geico
– 2.1%, Geico Insurance and Geico General, February 6th
– 2.2%, GEICO compensation, February 6th
All State
– 4%, AllState coverage and Allstate insurance, July 26th
– 3%, Allstate property and casualties, July 26th
USAA
– 0.41%, USAA Insurance, June 16th
– 0.5%, USAA victims, June 16th
– 0.87%, USAA General Compensation, June 16th
State Farm
– 6%, State Farm Mutual, March 3rd
– 2.2%, state farm fires and casualties, March 3rd
– 4.4%, State Farm Mutual, August 25th
– 2.2%, state farm fires and casualties, August 25th
State officials also urged auto insurance customers to shop.
LexisNexis’ report said it said it had increased 16% in car insurance purchases in the first quarter of 2025 compared to the same period last year. More shopping could lead to better prices as more competition will encourage more competition, the release said.
Ron Burtibise covers South Florida Sun Sentinel’s business and consumer issues. He can be contacted by telephone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.
Original issue: August 4, 2025, 3:02pm EDT
