Florida Governer Ron Desantis announced last week that three major auto insurance companies are reducing rates in the state. 

He said during a speech at Florida International University that GEICO (10.5% decrease), State Farm (6% decrease) and Progressive (8.1% decrease) are the first insurance companies to lower rates. 

“We have others that are going to be doing other things very soon, so we anticipate to see decreases for USAA and maybe some other companies as well,” Desantis said. 

Desantis, who also announced rate reductions for homeowners insurance, noted that auto insurance was the number one inflationary item nationwide in 2024. 

Tort reform is one reason for the lower rates, a press release from Desantis’ office says. 

A 2023 bill signed by Desantis banned assignment of benefits for glass repair in the state. The press release says litigation related to auto glass repairs has seen a dramatic decline since the bill passed, dropping from 24,720 lawsuits in the second quarter of 2023 to just 2,613 in the same period in 2024. 

Another bill, SB 2D signed in 2022, eliminated one-way attorney fees related to assignment of benefits, the release says. It says the bill also helped reduce auto glass repair lawsuits in the state. 

Last year, insurance costs hit record levels. The average annual premium was $2,543, up 26% from 2023, according to J.D. Power.

ValuePenguin predicts drivers will pay an average of 7.5% more this year for auto insurance as the new year kicked off with an average nationwide monthly premium of $175 for full coverage. Nevada, Florida, and Michigan premiums are the highest at more than $250 a month, according to ValuePenguin’s “State of Auto Insurance in 2025” report.

North Carolina insurance companies have requested a statewide average increase of 22.6% in automobile insurance rates, according to the North Carolina Department of Insurance. 

The request was made through the North Carolina Rate Bureau, which represents vehicle insurance companies, according to the release. The companies are requesting the rates take effect Oct. 1. 

IMAGES

Photo courtesy of Different_Brian/iStock