Florida insurance costs up for debate as lawmakers return

(The Center Square) – Florida’s insurance market has stabilized in recent years as more companies entered the state and others lowered costs. But homeowners and drivers are still paying some of the highest rates in the nation, and the affordability debate is set to continue in the 2026 legislative session that began Tuesday.

Florida homeowners pay an average of $5,838 per year for full-service premiums, 142% higher than the national average, according to Bankrate.com. Drivers pay an average of $3,874 per year. The state’s risk for severe weather, high rates of uninsured drivers, congested areas with more risk for accidents and past litigation issues are to blame, Bankrate said.

Democrats have filed a series of bills to limit rate hikes, speed claim resolutions, require claims to be mediated before a lawsuit is filed, create whistleblower protections for insurance employees or contractors and prevent insurers from using affiliated managing general agents to conceal profits.

The bills aren’t likely to get much traction in the Republican-controlled legislature, where lowering property taxes is a priority. As lawmakers returned to Tallahassee on Monday, GOP Gov. Ron DeSantis said insurance is becoming more affordable as a result of reforms enacted in recent years that made it more difficult to sue companies.

DeSantis announced a rate drop for hundreds of thousands of Floridians who rely on Citizens Property Insurance Corp., the state’s insurer of last resort. Policyholders’ bills will decrease by an average of 8.7% this spring, and more than 150,000 will see reductions of 10% or more, DeSantis said, with sharper drops in south Florida counties.

Seventeen new property insurers have entered the market, he said, and major carriers have been reporting average homeowner reductions between 5% and 8%.

Florida Insurance Commissioner Michael Yaworsky said the reductions are “entirely” due to tort reform laws.

“We have to be on top of our game with insurance. And what the tort reform was all about was saying we can’t afford to have that kind of third-party excess taking money out of the system off the backs of everyday policyholders, and that’s what was happening,” said Yaworsky.

Auto companies also have announced they will lower premiums.

State Farm said in November its auto insurance rates will drop by an average of 10%. USAA, Florida Farm Bureau, Progressive, AAA, Allstate and others have filed for premium rate decreases.

Progressive said in October it was refunding nearly $1 billion to Florida policyholders, and Uber said it has seen lower insurance costs as a result of declining litigation expenses.

Meanwhile state lawmakers are poised to re-examine the state’s no-fault auto rule, which DeSantis wants to keep in place.

House Bill 769 and Senate Bill 522 would repeal the law and update minimum liability coverage, which would require fault-based bodily injury liability coverage instead of the personal injury protection drivers are required to carry now.

The National Association of Independent Insurance Adjusters said some drivers could see higher premiums and anticipated an increase in fault-based litigation if the rule were to be repealed. Advocates say repealing the rule would help address fraud.