TAMPA, Fla. – Drivers in Florida could see a change in their car insurance rates. The Florida Insurance Commissioner said rates among the state’s top five insurers dropped an average of 6.5% this year.
The state’s top five insurers are Progressive, Geico, State Farm, Allstate and USAA. These companies make up 78% of the market.
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The backstory:
The change follows several years of rate increases. State leaders said the five largest insurers saw average rate increases of more than four percent last year, and nearly 32% in 2023.
“Now, we are starting to see relief really hit consumers in a way that is beneficial,” State Insurance Commissioner Mike Yaworksy said. “We are all working to make ends meet these days, and this is a good sign for Florida’s insurance market going forward.”
State leaders said this rate decrease is a promising sign.
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“I think most Floridians on average might save $60 to $100 a year,” Former State Deputy Insurance Commissioner Lisa Miller said.
Dig deeper:
Miller said the rate decrease was driven by legislation passed in 2022 and 2023 addressing insurance reform.
“They basically took out the incentive for what the governor called ‘billboard lawyers,'” Miller said. “You know, to sue insurance companies.”
Miller said before this law passed, there were thousands of lawsuits and billions of dollars in attorney’s fees, which drove insurance rates up.
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She said there was also legislative reform impacting accuracy and damages.
“The new laws basically said that if you’re going to sue your insurance company, you need to have skin in the game,” Miller said. “So, you would work with your lawyer, but it’s not going to be automatically that the lawyer’s fees are going to be paid. You would have to do that. You would negotiate with your lawyer what your rates are, and you would decide if your case you think is strong enough to take to court.”
Yaworksy is optimistic about rates continuing on a downward trend.
“It’s impossible to say what is going to happen in six months, 12 months or 18 months,” Yaworsky said. “But, all the indications are that we will continue to see good news develop over time.”
What you can do:
Experts’ advice to drivers is to contact your insurance companies to fully understand your policy and make sure your policy is the best fit for you.
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State leaders said there’s never a bad time to shop around your auto insurance policy.
“Connect with your insurance agency,” Miller said. “You pay them a fee. They want to hear from you. Don’t wait until a claim to understand the coverage you have.”
What’s next:
Miller believes the state legislature will continue to monitor auto insurance rates and carriers adjust to the most recent changes. She said competition is up right now, which is an advantage for consumers.
The Source: The information in this story was gathered by FOX 13’s Kylie Jones.
