Photo: Bill Oxford / iStock / Getty Images
FLORIDA - Florida’s five largest auto insurers will cut rates by up to 11.5% in 2025, following recent legislative reforms aimed at curbing fraud and lawsuit abuse.
Starting in 2025, Florida’s top five auto insurers, covering almost 80% of the state’s drivers, will reduce rates by an average of 6.5%, with some insurers offering reductions of up to 11.5%.
This marks a shift toward market stability after years of rising premiums.
Florida Insurance Commissioner Mike Yaworsky praised the change, calling it a step in the right direction.
The reduction follows a dramatic 30% rise in premiums just two years ago, caused by excessive lawsuits and fraud.
Recent legislative reforms passed between 2022 and 2023 have contributed to the improvement.
The state’s auto insurance loss ratio, which measures the amount insurers pay out in claims compared to what they collect, has dropped from 80.5% to 53.3%, now the lowest in the country.
This reduction is a direct result of laws targeting lawsuit abuse.
According to Lisa Miller, former Florida Deputy Insurance Commissioner, there are fewer ads pushing drivers to sue insurers.
Despite the progress, some experts warn that further reforms are necessary.
Former Senator Jeff Brandes emphasizes the need to address the state’s high rate of uninsured drivers, which is roughly 20.6%.
While the rate cuts bring immediate relief, experts caution that maintaining these reductions will be challenging, urging consumers to shop around for the best rates.