DeSantis Announces Insurance Relief for Florida Residents
MIAMI, Fla.—Governor Ron DeSantis today announced positive developments in Florida’s insurance market, highlighting lower rates, increased consumer protections, and a more competitive environment.
DeSantis shared that insurance premiums are decreasing, with the state having the lowest average rate increases in the nation in 2024. New insurance companies are also entering the market.
“Today I announced that Citizens Property Insurance will be instituting homeowners’ insurance premium decreases for three-quarters of Miami Dade, and statewide decreases averaging 5.6%. I also was pleased to announce significant reductions in auto insurance rates in Florida for companies like GEICO (10.5% decrease), State Farm (6% decrease) and Progressive (8.1% decrease,” DeSantis reported.
He noted the challenges of the past four years as inflation, active hurricane seasons, and litigation had created market instability and high premiums. However, recent data demonstrated that Florida’s insurance market is stabilizing, as shown by rate decreases and an influx of 11 new companies.
Reforms Drive Down Costs
Since 2019, Florida has enacted five major laws to reform the insurance market, focusing on tort reform and consumer protection. Key legislation such as HB 7065 (2019) and SB 76 (2021) worked to curb abusive litigation while SB 2D and SB 2A (2022) further reduced litigation and strengthened consumer protections.
In 2023, the state eliminated subsidies for out-of-state vacation homes, expanded home hardening programs, and enhanced oversight of insurers.
Market Growth and Reduced Rates
Governor DeSantis announced that Florida has over 7.58 million active insurance policies, an increase of more than 130,000 in the last year. This growth is supported by more insurance companies entering the market, a sign of renewed confidence.
He also highlighted that Florida had the lowest average premium rate increase in the nation, with a statewide average of just 1%, a significant difference compared to other states where premiums have increased by over 20%.
DeSantis emphasized that recent reforms are delivering real savings for Floridians. Among the top 10 insurance carriers, 60% have expanded their business, and 40% have filed for rate decreases. The average rate increase has fallen from over 21% in 2023 to a projected 0.2% for 2025.
Citizens Property Insurance, which had been rapidly expanding, is now shrinking, with over 20% of its policyholders seeing rate decreases averaging -5.6%.
In Miami-Dade, almost 75% of homeowners are experiencing rate reductions, while over 50% in Broward and nearly 19% in Palm Beach are benefiting from lower premiums. Since 2022, more than 477,000 policies moved back to the private market, showing increased competition.
Auto Insurance Savings
Auto insurance costs are also falling across Florida. Major companies such as GEICO, Progressive, and State Farm have filed for rate reductions. Litigation related to auto glass repairs has dramatically decreased, further contributing to cost savings for drivers.
Florida’s Insurance Reform Timeline
Over the past three years, Florida has passed key legislation to address ongoing insurance issues.
- 2019: HB 7065: Addressed excessive litigation tied to Assignment of Benefits (AOBs).
- 2021: SB 76:
- Tightened citizens’ eligibility requirements and eased its statutory cap on rate increases.
- Required plaintiffs to notify an insurer before a lawsuit is filed.
- Tightened the deadline to file insurance claims from three to two years.
- 2022 (Special Session): SB 2D:
- Eliminated one-way attorney fees related to AOBs.
- Prohibited roofers from paying or absorbing insurance deductibles.
- Created a Reinsurance to Assist Policyholders (RAP) program.
- 2022 (Further Legislation): SB 2A:
- Eliminated one-way attorney fees from all statutes.
- Clarified what constitutes an insurer acting in “bad faith.”
- Tightened Citizens eligibility.
- Required insurance companies to be more responsive to their customers.
- Expanded the Office of Insurance Regulation’s ability to penalize insurance companies.
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2023: Additional bills were passed further shoring up Florida’s insurance market for good.
- Lifting the Citizens rate cap for non-primary residences.
- Established limits on bad faith claims and repealing even more one-way attorney fees.
- Expanding eligibility for the My Safe Florida Home program to harden homes.
- Defining the circumstances for when a hurricane deductible would apply.
- Allowing OIR to further examine insurance companies’ compliance.
In 2023, the Governor also signed House Bill (HB) 837, enacting broad changes to civil litigation practices, including revamping the bad faith framework for negligence suits and eliminating exorbitant attorney’s fees.
