On February 5, 2025, Governor Ron DeSantis held a news conference at Florida International University to announce significant reductions in insurance costs for some Florida homeowners and drivers. He stated that over 20% of Citizens Insurance policyholders statewide will experience rate decreases averaging 5.6% in 2025. In South Florida, nearly 19% of policyholders in Palm Beach County will see a decrease, while 73% in Miami-Dade County and 52% in Broward County will receive average decreases of 6.3% and 4.5%, respectively.
In addition to home insurance reductions, the governor announced that many Florida drivers can expect lower auto insurance bills this year. Geico policyholders will see a 10.5% decrease, Progressive customers an 8.1% decrease, and State Farm clients a 6% decrease. DeSantis also mentioned that other companies, such as USAA, may implement similar reductions soon.
These announcements contrast with earlier expectations, as the board for Citizens Insurance had approved a 14% rate hike in June 2024 for 2025. However, state regulators never approved that increase. The governor attributed the rate reductions to recent legislative actions aimed at stabilizing the insurance market. He emphasized that while factors like storms and nationwide inflation are beyond control, providing a solid marketplace is essential.
Florida’s Office of Insurance Regulation Commissioner Michael Yaworsky supported the governor’s statements, noting that market stability is emerging throughout the state. Since 2019, Florida has enacted five laws—three on tort reform and two on consumer protection—to reverse years of insurance market instability. Key legislative reforms include measures to curb abusive litigation tied to Assignment of Benefits (AOBs), tighten claim deadlines, encourage dispute resolution over lawsuits, and eliminate one-way attorney fees for AOBs.
These developments are promising for Florida residents, especially in South Florida, who have faced rising insurance costs in recent years. The announced rate reductions for both home and auto insurance provide some financial relief and reflect efforts to create a more stable insurance market in the state.
Read the Original Article Here: Florida Gov. Ron DeSantis announces Citizens Insurance rate reduction, car insurance relief