Florida Governor Ron DeSantis announced measures to ease the costs of home and auto insurance in the state, in response to growing concerns over affordability and coverage availability. These actions include legislative and regulatory reforms aimed at stabilizing the insurance market and reducing premiums for residents.
- Key measures include:
- The governor said 20% of Citizens Insurance policyholders statewide will see a reduction in their bill in 2025.
- More Affordable Auto Insurance for Florida Drivers
- The governor announced the following statewide decreases for auto insurance policyholders from these three companies
- Key legislative reforms included:
Key measures include:
- Insurance market reforms: The goal is to attract more insurance companies to the state to increase competition and offer more options to consumers. This could help lower prices and improve policy availability.
- Strengthening disaster infrastructure: Investments will be made to mitigate damage from hurricanes and other extreme weather events, which could reduce risks and, consequently, insurance premiums.
- Transparency and regulation: Measures will be implemented to ensure insurers operate more transparently and fairly, protecting consumers from abusive practices.
- Assistance programs: Options will be explored to help low-income residents access affordable insurance, particularly in areas prone to natural disasters.
The governor said 20% of Citizens Insurance policyholders statewide will see a reduction in their bill in 2025.
“Overall, at the state level, most of the decreases are concentrated in South Florida,” DeSantis said.
Citizens Insurance policyholders will see the following price cuts in 2025, according to the governor:
1. Palm Beach County:* Approximately 20% of Citizens policyholders will see a decrease
2. Miami-Dade County* 73% of Citizens policyholders will receive an average reduction of 6.3%
3. Broward County* 52% of Citizens policyholders will receive an average reduction of 4.5%
This announcement contrasts with what Citizens policyholders expected after the Citizens Insurance Board approved a 14% rate hike in June for 2025. However, state regulators never approved that increase.
More Affordable Auto Insurance for Florida Drivers
In addition to the reduction for Citizens home insurance policyholders, DeSantis said many drivers in Florida can expect cheaper bills this year.
The governor announced the following statewide decreases for auto insurance policyholders from these three companies
- Geico: 10.5% decrease
- Progressive: 8.1% decrease
- State Farm: 6% decrease
“And we have other companies that will be making moves very soon, so we anticipate seeing decreases for USAA and maybe some other companies as well,” DeSantis said. Since 2019, Florida has passed five laws (three on tort reform and two on consumer protection) in an effort to reverse years of instability in the insurance market.
Key legislative reforms included:
- HB 7065 (2019), which curbed abusive litigation related to Assignment of Benefits (AOB)
- SB 76 (2021), which tightened claim deadlines and encouraged dispute resolution over lawsuits
- SB 2D (2022), which eliminates one-way attorney fees for AOBs, limits roofing scams, and creates a $2 billion reinsurance program to help policyholders (RAP)
- SB 2A (2022) further reduced frivolous litigation, strengthened insurer accountability, and protected consumers.
These initiatives come at a time when many Floridians face significant increases in insurance premiums, partly due to frequent hurricanes and other climate challenges. Governor DeSantis has emphasized that these measures are part of a broader effort to protect residents and ensure Florida remains an attractive place to live and do business.
However, some critics argue that stronger, long-term actions are needed to address the structural problems in the state’s insurance market. Only time will tell if these measures will have the desired impact on reducing costs and improving market stability.
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