Florida home, auto premiums drop nearly $3 billion
In 2025, homeowners' rate increases slowed to less than 1% and auto rates fell 4.1%, while litigation and claim-handling costs also declined, according to a new report commissioned by American Property Casualty Insurance Association.
Florida homeowners and drivers paid nearly $3 billion less for insurance in 2025 than they did the year before, marking a steep turnaround after years of increases, according to a new actuarial report.
The state had a much different insurance picture in 2022, when average home and auto costs were the highest in the country, according to the report, Florida’s Legal Reforms: Lower Insurance Costs and Less Litigation, commissioned by the American Property Casualty Insurance Association.
Now the numbers are moving in the other direction – lower total premiums, moderating rates, declining litigation and a stronger insurance market.
“Florida’s legal system abuse reforms are working as intended,” said Chase Mitchell, assistant vice president of state government relations at APCIA. “The data shows a clear and compelling trend: litigation is down, competition is increasing, market stability is improving, and home and auto insurance costs are trending downward."
The report breaks down the decline this way:
- Homeowners insurance: Floridians paid $1.29 billion less for homeowners insurance in 2025 than the year before, a 7% decline. The average rate change was an increase of less than 1%, compared with 9.6% in 2023.
- Auto insurance: Floridians paid $1.7 billion less for auto insurance in 2025, a 5% decline. Average rates fell 4.1% after increasing 7.1% in 2022.
- Money returned: Insurers paid policyholders $211 million in dividends in 2025. That was 43% more than the year before and more than double the amount paid in 2023.
More insurers also moved into the market. Twenty companies began writing coverage in Florida, bringing more than $850 million in new capital. Meanwhile, Citizens Property Insurance’s share of total insured value fell from 15% in 2023 to 3% in 2025.
At the same time, lawsuits involving residential property insurers and assignments of benefits have dropped sharply. In auto liability cases, defense and claim-handling costs fell from 4.6 cents for every dollar paid in claims in 2021 to 2 cents in 2025, the lowest level in at least a decade.
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