Florida’s five largest private-passenger auto insurers are cutting rates by an average of 8% this year, reflecting strong earnings and declining loss ratios that are reshaping the state’s auto insurance market, state Insurance Commissioner Mike Yaworsky announced.
The carriers—Progressive, Berkshire Hathaway, State Farm, Allstate, and USAA—collectively hold 78.6% of Florida’s private-passenger auto market, according to BestLink data based on 2024 direct premiums written.
Florida’s Office of Insurance Regulation (OIR) reported that the state recorded the nation’s lowest personal auto liability loss ratio in both 2024 and 2025, reaching 52.5% last year—the lowest in 15 years. Auto physical damage loss ratios also fell sharply, dropping from 112% in 2022 to 49.5% in 2025. Regulators and insurers credited 2023 legislative reforms for lowering legal costs and driving these improvements.
Progressive Leads Rate Cuts
Progressive posted a 25% increase in fourth-quarter net income to $2.95 billion, while full-year 2025 net income climbed to $11.3 billion from $8.5 billion the prior year. The company cut rates three times in 2025 and issued $1.2 billion in excess personal auto profit credits in Florida, up from an earlier $950 million.
President and CEO Tricia Griffith said a new policyholder today would pay 20% less than a year ago. While she did not rule out further reductions, she cautioned that catastrophic losses in Florida typically occur late in the year.
State Farm, the nation’s largest personal auto insurer, swung to a $4.6 billion underwriting gain in 2025 after a $2.7 billion underwriting loss in 2024. The company also announced a $5 billion dividend distribution to auto policyholders nationwide. Florida policyholders are expected to receive an average of $173 per insured vehicle from the nearly $533 per-policyholder dividend, according to the OIR.
The insurer attributed the turnaround to falling auto repair costs and lower collision frequency in 2025. It enacted an average 10% rate reduction across 40 states, projected to lower premiums by $4.6 billion.
Allstate’s fourth-quarter net income doubled to $3.8 billion from $1.9 billion a year earlier. CEO Tom Wilson praised Florida’s legislative tort reforms and said the company would reduce rates by 7% for more than 171,000 Florida drivers.
At Berkshire Hathaway subsidiary GEICO, Florida’s second-largest auto carrier, annual pretax underwriting earnings fell to $6.82 billion from $7.81 billion in 2024. USAA, which has not yet released 2025 earnings, plans to lower Florida rates by 7% in May.
Tort Reform Drives Measurable Change
Executives link the rate relief to House Bill 837, the sweeping tort reform legislation signed into law by Gov. Ron DeSantis on March 24, 2023. The law shortened the statute of limitations for negligence claims from four to two years, eliminated one-way attorney fees in most insurance suits, and adopted a modified comparative negligence standard, barring plaintiffs more than 50% at fault from recovering damages.
Since the law’s enactment, Progressive reported that average loss costs for Florida injury claims fell 10%–20%, while the share of personal injury protection claims leading to lawsuits dropped roughly 60%. Allstate hailed the reforms as a model for other states, citing sharply reduced litigation: auto glass repair lawsuits fell from 24,720 in Q2 2023 to 2,613 in the same quarter of 2024, and Florida’s ranking for nuclear verdict payouts dropped from second to 10th.
Average rate increases across Florida insurers declined from 21% in 2023 to a projected 0.2% in 2025. Citizens Property Insurance, the state-backed insurer of last resort, reduced policies in force to 395,144 as of January 2025—a 50% decrease from the prior year and the lowest in 14 years. Meanwhile, 17 new insurers have entered the Florida market since the reforms, increasing competition in both auto and homeowners insurance.
State Farm called HB 837 a demonstration of “what’s possible when thoughtful policymaking and balanced regulatory oversight combine with industry expertise,” highlighting it as a model for other states facing similar litigation challenges.
