Florida Auto Insurance Rates Trending Lower

TALLAHASSEE, Fla. — Florida’s largest auto insurers are signaling lower rates for 2026, a development that state regulators say reflects improving conditions in the insurance market.

The Florida Office of Insurance Regulation (OIR) said the state’s five largest auto insurance groups, which together represent about 78% of the market, are currently indicating an average rate change of about -8% for 2026. State leaders cited Progressive, Berkshire Hathaway (GEICO), State Farm, Allstate and USAA as the largest auto insurers in Florida.

Regulators said the trend follows earlier decreases. In 2025, Florida’s top five auto insurance groups sought an average rate reduction of -7.4%. Regulators say multiple companies have continued to lower premiums or return money to policyholders.

Florida Insurance Commissioner Mike Yaworsky said the declining rates show the market is stabilizing following legislative reforms in recent years.

“The historic legislative reforms continue to drive auto insurance rates down – with nearly 80% of Florida’s auto policyholders seeing lower rates for 2026,” Yaworsky said.

Several insurers have already announced specific reductions or refunds:

• Progressive reported nearly $1 billion in credits to policyholders last fall.
• State Farm recently announced a dividend of about $533 million for Florida drivers, averaging roughly $173 per vehicle.
• GEICO also announced rate reductions that will provide relief to more than 700,000 Florida customers beginning in April 2026.

Other companies have approved or requested rate cuts as well, including USAA lowering rates by 7% and Allstate decreasing rates by 4% for more than 13,000 drivers. Regulators also approved three rate decreases for AAA in the past year, reducing premiums by a combined 15%.

State officials say improving loss ratios also reflect a stronger insurance market. Florida ranked No. 1 in the nation for the lowest personal auto liability loss ratio in 2025, at 52.5%, the lowest level recorded in the state in 15 years.

Insurers’ losses from vehicle damage claims have also dropped sharply, falling from 112% in 2022 to 49.5% in 2025, according to OIR.

Officials say the trend could continue as insurers report improved financial performance and fewer losses.

While auto coverage is separate from property insurance, regulators say broader improvements across Florida’s insurance market could help ease some household costs for residents.

Source: Florida Office of Insurance Regulation

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