Governor Ron DeSantis has announced notable reductions in both homeowners and auto insurance premiums as Florida’s insurance market shows signs of stabilization following sweeping reforms enacted in 2022 and 2023.
Florida Residents See Long-Awaited Relief
Lake County, Florida – As 2026 begins, Florida residents are finally experiencing measurable relief in insurance costs. After years of steep premium increases driven by hurricanes, litigation, fraud, and insurer withdrawals, both home and auto insurance rates are trending downward.
The announcement comes at a critical time. Florida homeowners currently pay some of the highest premiums in the nation, averaging $5,838 annually for $300,000 in dwelling coverage.
Governor DeSantis credited recent legislative reforms with strengthening the market, attracting new insurers, and restoring competition.
Home Insurance Rates See Historic Reductions
Citizens Property Insurance Corporation, Florida’s insurer of last resort, will implement an average statewide premium reduction of 8.7% beginning Spring 2026 for renewing policyholders.
- Over 330,000 policyholders across all 67 counties will be impacted
- More than 150,000 homeowners will receive reductions of 10% or more
- In high-risk areas such as Miami-Dade and Broward counties, cuts could reach up to 14%
For many homeowners, this translates into savings of several hundred dollars annually.
Private Insurers Follow the Trend
Private carriers are also filing for rate reductions:
- 83 rate-decrease filings submitted as of January 2026
- 100 filings requesting no increases
Notable examples include:
- Florida Peninsula: 8.2% decrease
- Security First: 8% decrease for 62,000 policyholders
- Universal Property & Casualty: 5.1% decrease
Additionally, 17 new homeowners’ insurance companies have entered the Florida market, increasing competition and applying downward pressure on rates.
However, experts caution that while rates are declining, Florida’s continued exposure to hurricanes means premiums will likely remain above the national average.
Auto Insurance Premiums Also Trending Lower
Florida drivers—who currently pay an average of $3,884 annually for full coverage—are also benefiting from reductions.
The state’s top five auto insurers have implemented an average 6.5% rate cut, including:
- AAA: 15% decrease
- State Farm: 10.1% decrease
- Progressive: 8% decrease
- Florida Farm Bureau: 8.7% decrease
- USAA: 6.1% decrease
- Allstate: 4% decrease
In Southwest Florida’s Gulf Coast region, insurers such as Progressive and AAA are leading targeted reductions as claim costs stabilize.
Major Policy Change: PIP Requirement Ending
A significant upcoming reform is the elimination of Florida’s Personal Injury Protection (PIP) requirement by July 1, 2026.
The shift to a fault-based system could save drivers an estimated $349 annually. Lawmakers argue this move will reduce fraud and help lower premiums over time.
However, experts stress the importance of maintaining adequate uninsured/underinsured motorist coverage, particularly in a state where an estimated 15–20% of drivers remain uninsured.
Challenges Still Remain
Despite improvements, Florida remains the third-most expensive state for car insurance. Contributing factors include:
- High vehicle theft rates
- Dense traffic conditions
- Severe weather risks
- A significant number of uninsured drivers
Residents are advised to compare policies carefully in early 2026. Industry experts recommend waiting until any potential rebates are received before switching carriers.
State Leadership Credits Market Reforms
Governor DeSantis emphasized that recent reforms are delivering measurable results.
“Floridians are seeing rate reductions in both auto and homeowners insurance across the state, with additional relief coming soon.”
While market conditions appear more stable, continued monitoring will be necessary to ensure long-term sustainability.
What This Means for Lake County Residents
For homeowners and drivers in Lake County and across Florida, 2026 may mark the beginning of a more competitive and stable insurance environment.
Residents are encouraged to review their current policies, compare updated rates, and consult with agents to maximize savings under the new market conditions.
Have you noticed changes in your insurance rates? Share your experience in the comments below and stay connected with Lake County Florida News for ongoing updates on local and statewide developments.
