Florida Drivers and Homeowners to Benefit from Insurance Cost Reductions
MIAMI — Florida Governor Ron DeSantis has announced substantial reductions in insurance costs for both drivers and homeowners across the state. This decision comes after years of scrutiny and reporting on insurance rate fluctuations by WPTV News.
The announcement was made during a comprehensive hour-long press conference at Florida International University, where DeSantis elaborated on the expected financial relief for many Floridians.
Home Insurance Rate Reductions
Gov. DeSantis highlighted that over 20% of Citizens Insurance policyholders will see an average decrease of 5.6% in their premiums starting in 2025. The reductions predominantly benefit residents in South Florida, with significant changes in specific counties:
- Palm Beach County: Nearly 19% of Citizens policyholders will benefit from a rate decrease.
- Miami-Dade County: Approximately 73% of policyholders will experience an average decrease of 6.3%.
- Broward County: About 52% of Citizens policyholders will enjoy an average reduction of 4.5%.
This announcement differs notably from earlier expectations when the Citizens board endorsed a 14% rate hike for the year 2025, a move that was ultimately not approved by state regulators.
Insights from State Officials
Accompanying DeSantis during the announcement were key figures such as Kevin Guthrie, Director of the Florida Division of Emergency Management, and Michael Yaworsky, Commissioner of the Florida Office of Insurance Regulation. Yaworsky remarked, "Reforms are working. Market stability is emerging throughout our state." DeSantis reinforced the effectiveness of recent legislative actions aimed at stabilizing Florida’s insurance landscape. “While we can’t control storms or nationwide inflation, we can create a solid marketplace,” he asserted.
Cheaper Car Insurance for Florida Drivers
In addition to home insurance reductions, Gov. DeSantis announced that many Florida drivers will enjoy lower auto insurance premiums. Key rate adjustments for major insurers include:
- Geico: 10.5% decrease
- Progressive: 8.1% decrease
- State Farm: 6% decrease
The governor indicated that more companies, such as USAA, might announce similar reductions soon.
Legislative Backing for Insurance Reforms
These reductions are the result of several reforms targeting insurance stability. Since 2019, Florida has enacted five significant laws designed to combat years of instability in the insurance market. Notable reforms include:
- HB 7065 (2019): Curbing litigation abuses related to Assignment of Benefits (AOBs).
- SB 76 (2021): Imposing stricter claim deadlines and promoting resolution through mediation instead of lawsuits.
- SB 2D (2022): Eliminating one-way attorney fees tied to AOBs, addressing roofing scams, and establishing a $2 billion Reinsurance to Assist Policyholders (RAP) program.
- SB 2A (2022): Strengthening insurer accountability and reducing frivolous litigation while enhancing consumer protections.
Conclusion
As Florida navigates the complexities of the insurance market, the recent announcements from Gov. DeSantis promise significant financial relief for many residents. With measures in place to foster stability and reduced premiums, homeowners and drivers alike can look forward to a more favorable insurance landscape.
For additional insights on insurance reforms in Florida, check out Florida Office of Insurance Regulation and stay updated with local news reports.