SARASOTA, Fla. (WWSB) – Governor Ron DeSantis delivered good news to Florida homeowners and drivers Tuesday, announcing that auto insurance rates are declining while other states see increases.
DeSantis said the state’s top insurance groups have averaged a 6.5% reduction in rates for 2025. Liberty Mutual decreased rates by 7%, State Farm by 5%, and other major carriers filed similar reductions.
Progressive customers are seeing the most significant change. The insurance commissioner secured almost a billion dollars in credits for Progressive policyholders, averaging about $300 per customer.
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The savings stem from declining litigation expenses following insurance reforms enacted in late 2022 and early 2023. DeSantis said the reforms addressed Florida’s reputation as a “litigation hellhole” that drove up costs for consumers.
“In almost every state, you’re seeing auto insurance rates go up,” DeSantis said. “What’s happening in Florida for 2025, the top five auto writer insurance groups have averaged 6.5% reduction in rates.”
The governor noted that auto insurance was the top consumer inflation driver nationwide in 2024, with average increases of 20% across America.
Insurance Commissioner Mike Yaworski negotiated the Progressive rebate, which will be distributed as checks or bill credits depending on how long customers have been with the company. The rebate comes on top of additional rate reductions Progressive has filed.
“Progressive customers who have been with Progressive this whole time are going to get a bigger rebate,” DeSantis said. The commissioner is in negotiations with other major auto insurers for similar rebates.
The reforms targeted Florida’s outsized litigation costs. The state represented 8% of claims nationwide but accounted for 78% of litigation costs before the changes.
DeSantis said Florida had the lowest homeowner insurance increase in the nation for 2024, with a statewide average increase of just 1% compared to 15-30% in other parts of the country.
Since the reforms, 17 new insurance companies have begun operating in Florida, bringing in more than $57.4 million in new policyholder support. More people now carry private insurance rather than Citizens, the state-backed insurer of last resort.
The governor said 150 residential insurance companies have filed for either rate decreases or zero percent increases. Peninsula, one of the state’s largest insurers, requested its largest decrease in modern history at 8.4% for homeowners’ premiums.
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