Florida Auto Insurance Costs Drop in 2025 but Remain Among Highest Nationally

Florida drivers benefited from a notable $303 decrease in auto insurance premiums in 2025, marking a 9% reduction compared to previous years. Despite this temporary relief, Florida remains one of the most expensive states for car insurance, with an average premium of $3,229 annually, which is $796 above the national average. The state's ongoing climate-related risks contribute significantly to the high cost of coverage.

Looking ahead, experts predict a 7.5% overall increase in auto insurance premiums nationwide in 2026, potentially leading to an additional $242 in annual costs for Florida drivers. This would further widen the gap between Florida's insurance costs and the national average. The broader trend across many states shows rising car insurance costs attributed to elevated repair expenses, labor shortages, and more costly vehicle models. Insurance companies are adjusting premiums to offset underwriting losses experienced during 2022 and 2023 due to these factors.

Florida's ranking as one of the highest states for car insurance rates underscores ongoing challenges in affordability for residents, particularly for working families needing essential coverage. These developments emphasize the impact of regulatory, market, and environmental factors on the state's insurance landscape and point to the importance for insurers and policymakers to address these cost drivers.