Florida Drivers to See Auto Insurance Relief as Rates Continue to Fall
Florida motorists may soon see some breathing room in their budgets as auto insurance rates continue to decline across the state. The Florida Office of Insurance regulation (OIR) announced Wednesday the approval of further rate cuts, building on a trend of decreasing premiums over the past year.
The latest approval involves the United Services Automobile Association (USAA), which filed for an average 7% rate decrease set to take effect by May 2026. This change is projected to deliver over $125 million in annual savings to USAA’s Florida customers.
According to a statement from Commissioner Mike Yaworsky,this is part of a broader pattern. “The Office of Insurance Regulation is not slowing down on approving rate decreases or 0% increases from insurance companies,” he said. “USAA is just one of many auto insurance companies that OIR is having great conversations with to ensure reductions for policyholders.” Yaworsky further emphasized the impact of recent legislative reforms, stating, “We are thrilled with the progress in the home and auto insurance market since the critical legislative reforms were passed. It is indeed very clear that tort reform was the right thing to do, and we will continue to build on this success.”
The rate reductions are particularly welcome news for service members, veterans, and their families. “Every dollar counts for our active-duty service members, veterans and their families – now more than ever,” said Randy Termeer, USAA P&C President. He attributed the decrease to improving market conditions in Florida and the company’s ability to remain competitive while maintaining financial stability.
Earlier this month, Yaworsky and Governor Ron DeSantis highlighted “major insurance rate relief” for both auto and home insurance markets. The OIR reports that 42 auto insurance companies have filed for rate decreases in the last year, with 32 of those filings occurring within the last six months. Here’s a breakdown of recent rate reductions from other major insurers:
- Florida Farm Bureau: average decrease of -8.7%
- Progressive: average rate decrease of -8%, in addition to a recent $1 billion refund to policyholders.
- State Farm: average decrease of -10.1%. This marks State Farm’s third rate reduction as 2024, totaling over 20% in savings and exceeding $1 billion statewide.
- AAA: Multiple reductions throughout the year,lowering premiums by -15%,with a fourth round of reductions slated for early 2026.
- Allstate: average decrease of -4% for 13,100 drivers.
The OIR attributes the positive trend to the state’s tort reforms, which are fostering greater stability and growth in the insurance markets.
For those seeking further assistance navigating Florida’s insurance landscape, Matt Sczesny is available to provide solutions and answer questions regarding coverage.
Why are rates falling? Auto insurance rates in Florida are decreasing due to recent tort reforms enacted by the state legislature. These reforms aim to reduce frivolous lawsuits and litigation costs, which insurers can then pass on to policyholders in the form of lower premiums.
Who is affected? The rate reductions benefit all Florida drivers, but are particularly impactful for service members, veterans, and their families. Major insurers like USAA, State Farm, Progressive, AAA, Allstate, and Florida Farm Bureau have all filed for and received rate decreases.
What has happened? Over the past year, 42 auto insurance companies have filed for rate decreases in Florida, with 32 of those filings occurring in the last six months. USAA recently received approval for a 7
