The Florida Office of Insurance Regulation has announced that the state’s top five auto insurers are projecting an average rate change of -6.5% for 2025, marking a significant decline from previous years.
According to the Florida Office of Insurance Regulation (OIR), this represents a stark reversal from prior trends, as these groups had previously reported an average increase of +4.3% in 2024 and a dramatic +31.7% in 2023. The OIR attributes this turnaround to historic legislative reforms, improvements in underwriting, and reduced litigation costs.
In 2024, Florida’s personal auto liability loss ratio—the percentage of premium dollars insurers pay out in claims—dropped to 53.3%, the lowest rate in the nation. This decrease is substantial compared to 74.5% in 2023 and 80.5% in 2022, highlighting multi-year improvements in claims efficiency and cost control. Industry analysts and state regulators largely attribute this decline to legal reforms that limited lawsuit abuse and capped assignment-of-benefits claims, particularly those related to glass repairs.
The personal auto incurred loss ratio in Florida was recorded at 57.5% in 2024, ranking as the fifth-lowest nationwide. This figure marks significant progress from previous years when the ratio was 73.2% in 2023 and a much higher 89.7% in 2022. The OIR states that this improvement is linked to strengthened underwriting practices and successful litigation reforms enacted during recent legislative sessions.
Since Florida’s tort reform measures were implemented in 2023—including the ban on assignment of benefits (AOB) for auto glass claims—lawsuits related to such repairs have decreased dramatically. According to a press release from the governor’s office reported by Repairer Driven News, these lawsuits dropped from 24,720 in Q2 of 2023 to just 2,613 in Q2 of 2024, marking an approximate reduction of 89%. This decline illustrates how curtailing AOB abuses and eliminating one-way attorney fee incentives have effectively reduced frivolous litigation, easing costs on the insurance system and benefiting consumers. Additionally, these reforms have contributed to improved market stability and reductions in auto insurance rates across the state.
The Florida Office of Insurance Regulation (OIR) is responsible for overseeing and regulating the insurance industry within Florida. Its duties include reviewing and approving insurance rate filings, ensuring insurers maintain sufficient financial solvency, implementing state insurance laws, and protecting consumer interests.
