The Florida Office of Insurance Regulation announced the top five largest auto insurers are reducing rates by an average of 6.5% this year. State Farm recently announced a 10% reduction in auto rates. Progressive Insurance also offers its customers savings on their car insurance premiums.
Since January 2024, 17 new insurers have entered the Sunshine State market, and 33 have filed for rate reductions.
This is State Farm‘s third time in 2 years that it’s announced rate reductions, which the company says are more than 20%.
The Insurance industry says the latest moves by these companies show the market is stabilizing when it comes to cost.
Doug Wheeler policy analyst at Florida’s James Madsion Institute (JMI) says this shows the insurance reforms from 2022 and 2023 are working. “We are seeing the positive effects of these reforms, and when paired with housing affordability measures, Floridians will hopefully see many more rate decreases in the future,” said Wheeler.
Earlier this year, Citizens Property Insurance, Florida’s insurer of last resort, wanted a 14% increase but only received a 6.6% statewide average increase for most homeowners’ policies in 2025.
But now the tide may be turning, with lower increases. Wheeler says Citizens is no longer the largest insurer in the state. As of October, they are under 600,000 total policies from over 1.4 million at their highest.
Economic analysts point out that more policies leaving Citizens means the private sector is picking up, which should bring lower costs to taxpayers who are on the hook for Citizens.
“In the weeks leading up to Governor DeSantis signing these legal reforms into law, more than 280,000 civil cases were filed in Florida courts,” Wheeler said. It was projected to take about two years for these cases to move through the court system.”
