In a surprising turn of events, Florida’s auto insurance market is offering a rare bit of good news — lower rates. State Farm recently announced another 10% average rate cut, marking more than a 20% decrease in premiums since late 2024.
With over 2.5 million policies statewide, this move is expected to save customers more than $1 billion or about $400 per vehicle. Progressive Insurance has also joined the trend, returning nearly $1 billion in excess profits to its Florida policyholders.
So, what’s driving the change? It all comes down to stability and reform. The Florida Office of Insurance Regulation and Governor Ron DeSantis point to the 2022 and 2023 insurance reforms that helped reduce litigation costs and stabilize underwriting profits.
While this is primarily an auto insurance story, the ripple effects extend to homeownership and real estate. When consumers spend less on insurance, they have more flexibility in their budgets. Whether that’s saving for a down payment, qualifying for a larger mortgage, or managing rising property costs.
Here’s what to take away:
- Stability breeds confidence. Reforms are creating a more predictable insurance landscape, which may eventually ease pressure on homeowners’ insurance rates too.
- Lower overhead means higher affordability. Every dollar saved on auto coverage helps offset other rising costs of living in Florida.
- Momentum is returning. As markets stabilize, both consumers and lenders gain confidence, a key ingredient for a healthy housing market.
It’s another reminder that when one area of the financial system strengthens, it supports the others and in Florida, that’s good news for anyone looking to buy, sell, or invest in real estate.
— Written by The Coffey Group powered by Lucido Global. Serving Sarasota, Siesta Key, Longboat Key, and beyond.
