The Florida Department of Insurance Regulation announced that the top five major auto insurance companies will lower their premiums by an average of 6.5% this year. State Farm recently announced a 10% reduction in car rates. Progressive Insurance also offers customers savings on their auto insurance premiums.
Since January 2024, 17 new insurance companies have entered the Sunshine State market and 33 have applied for rate reductions.
This is the third time in two years that State Farm has announced rate reductions, which the company says are more than 20%.
The insurance industry says recent moves by these companies show the market is stabilizing on the cost front.
Doug Wheeler, a policy analyst at Florida’s James Madion Institute (JMI), said this shows that insurance reforms starting in 2022 and 2023 are working. “We are seeing the positive effects of these reforms, and when combined with housing affordability policies, Floridians can expect even more interest rate reductions in the future,” Wheeler said.
Earlier this year, Citizens Property Insurance, Florida’s last remaining insurance carrier, had hoped for a 14% increase, but in 2025 most homeowners policies would receive only a 6.6% average increase across the state.
However, the tide is now changing, and the rate of increase may be decreasing. Wheeler says Citizens is no longer the state’s largest insurance company. As of October, more than 1.4 million insurance policies totaled less than 600,000.
Economic analysts say more disengagement policies should mean a rebound in the private sector, which should lead to lower costs for the taxpayers who receive the benefits.
“In the weeks leading up to Governor DeSantis signing these legislative changes, more than 280,000 civil lawsuits were filed in Florida courts,” Wheeler said. It was expected that these cases would take approximately two years to reach the courts. ”
