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FLORIDA - Florida drivers and homeowners will see lower insurance costs in 2025 as state reforms continue to reshape the market.
Governor Ron DeSantis and Insurance Commissioner Michael Yaworsky announced that the state’s top five auto insurers are reducing premiums by an average of 6.5%, following major legislative changes aimed at reducing lawsuits and stabilizing rates.
Progressive Insurance will return nearly $1 billion in credits to about 2.7 million Florida policyholders after reporting lower losses and stronger profits.
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State officials said the refunds reflect the results of recent tort and insurance reforms passed in 2022 and 2023, which helped drive down costs and attract new insurers to Florida.
The state’s auto liability loss ratio dropped to 53.3% in 2024, the lowest in the nation, as lawsuit filings and litigation expenses declined.
Officials also reported that 17 new insurers entered Florida’s property market, contributing more than $574 million in surplus capital.
Domestic property insurers collectively earned $954 million in net income at the end of 2024, up from $292 million in 2023.
Regulators said that 33 insurance companies have filed for rate decreases and 46 for flat rates since January 2024.
Laws now require insurers to return excess profits to policyholders when earnings exceed statutory thresholds.
The Florida Office of Insurance Regulation stated it will continue monitoring compliance to ensure savings reach consumers and that the state’s insurance market remains stable through 2025.