Florida Auto Insurance Rates Drop 6.5% After Litigation Reforms

Florida's top five auto insurers, including Progressive, GEICO, AllState, State Farm, and USAA, have reduced average auto insurance rates by approximately 6.5% as of July 29, 2024. This reversal contrasts with national trends of rate increases and is attributed to recent state litigation reforms aimed at curbing costly legal disputes that previously drove up insurance costs. In 2023, Florida saw a significant rate increase of 31.7%, with smaller increases following in 2024 prior to these adjustments.

The Florida Department of Insurance Regulation's report highlights the impact of reforms that restrict frivolous lawsuits, which were a major factor in inflating premiums. Experts from the Better Business Bureau recommend that consumers regularly compare insurance providers and consider Usage-Based-Insurance programs, like Progressive's 'Snapshot,' which can reduce premiums by up to 10% based on driving behavior. These trends may influence market competition and pricing strategies within the state.