Home, Auto Insurance Rates Skyrocket In FL: See What Is Being Done

Both home and auto insurance rates have soared since 2020, with increases averaging 50 percent to 75 percent for home coverage and 50 percent to 63 percent for auto coverage in Florida, according to an analysis by The Wall Street Journal.

Florida homeowners have faced some of the steepest insurance rates and challenges finding coverage in the last decade after billions of dollars in damage inflicted by Hurricanes Irma, Michael, Ida and Francine.

Homeowners insurance rates have climbed by an average of 50 percent nationwide, while auto insurance rates have seen a 42 percent increase. These rate increases significantly surpass the 26 percent increase in consumer prices through August, according to S&P Global Market Intelligence and Labor Department data.

The mounting financial burden of escalating home and auto insurance premiums has ignited public outcry, pushing lawmakers in states across the political spectrum to confront the issue head-on. Both Democrat- and Republican-led states are under pressure to enact legislation that would impose caps on these rates, reflecting a bipartisan concern over the affordability and accessibility of essential insurance coverage.

“Rate increases are top of mind for every policymaker across the country. Consumers are going to them and saying, ‘I can’t deal with a 30% rate increase, or a 40% rate increase’,” Jon Godfread, president of the National Association of Insurance Commissioners, told The Journal.

With the lone exception of Wyoming, states are required to file notice of rate increases, according to the National Association of Insurance Commissioners. Lawmakers can reject increases in New Jersey, Pennsylvania and nine other states.

Other states are at the mercy of insurers. The U.S. insurance market, founded in 1752, was developed and is regulated at the state level. State insurance commissioners were appointed in the 1850s. In the 1940s, Congress exempted insurance from federal antitrust laws, allowing states to legislate on prices.

Gov. Ron DeSantis said Wednesday that Florida residents will receive $1 billion in auto insurance refunds as a result of reform laws, curbs on lawsuits, and new insurers entering the market.

“This year, Florida’s top five auto insurers are averaging over a 6% rate reduction, and we've secured nearly $1 billion in credits for Progressive auto policyholders – and the other carriers are expected to follow suit soon," DeSantis said. "Also, 17 new companies have entered the homeowners’ market, 33 companies have filed for rate decreases, and reinsurance market rates have declined."

The governor's office said 17 new insurance companies have entered the marketplace, bringing with them more than $574 million in policyholder surplus to support expansion in Florida’s property sector. Domestic property insurers reported $954 million in net income at the end of 2024 — up from $292 million in 2023 and reversing a $741 million loss in 2022.

Homeowners are seeing relief, officials said. Since January 2024, 33 companies have filed for rate decreases, while 46 companies have requested no change or increase. Florida Peninsula Insurance Company, one of the state’s largest insurers, requested its biggest rate decrease in company history, averaging an 8.4% decrease statewide, the governor's office said.

For 2025, Florida’s top five auto writer insurance groups are indicating an average 6.5% rate drop, down from an average increase of 4.3% in 2024 and an average 31.7% increase in 2023. For more information, click here.

Pending legislation in Illinois seeks regulatory changes that would give the state’s insurance commission veto power over increases it deems excessive. New York lawmakers are looking at soaring home insurance costs, and Democratic lawmakers in Michigan this summer proposed a law that would cut auto insurance rates by 10 percent.

Insurers contend that while price caps may offer short-term appeal, they ultimately lead to long-term harm.

“Price controls don’t lead to affordability,” Tim Zawacki, an analyst at S&P Global, told The Journal. “Ultimately, they just chase insurers out of the market.”

Regulators in California recently greenlighted double-digit home insurance rate increases after big insurance companies like State Farm threatened to pull out of the market. For decades, the state had a 6.9 percent ceiling on homeowner premium prices, resulting in rates below the national average despite expensive real estate and vulnerability to wildfires.