Nick Hopwood, founder of Peak Wealth Management, highlighted that retirees often overlook high insurance and living costs in no-income-tax states, which can outweigh expected tax savings. This statement was made on the social media platform X.
“Many retirees assume that moving to a no-income-tax state like Florida or Texas will save them money,” said Hopwood. “But a recent Wall Street Journal analysis shows that may not always be true. Florida, for example, has skyrocketing costs for car and homeowners insurance—often making it more expensive than states like California. Taxes are just one part of the equation; total cost of living tells the full story.”
According to Amwins’ 2025 market outlook, insurance carriers are experiencing rising losses in personal lines, particularly in high-risk states such as Florida. While cyber insurance pricing is expected to decline due to increased competition, homeowners’ and auto insurance remain under pressure from inflation, catastrophic exposure, and litigation. These dynamics continue to drive premium increases in certain geographic regions.
As per a report by Don’t Get Hit Twice, Florida property insurance rates rose by 34% in 2023, making it one of the highest-cost states for homeowners. The report attributes much of this increase to excessive litigation and abuse of the legal system by trial lawyers, who drive up costs through inflated claims and legal fees. In 2023, Florida accounted for 80% of the nation’s property insurance lawsuits despite only holding 9% of claims.
Hopwood is a Certified Financial Planner and Founder of Peak Wealth Management, where he specializes in retirement planning and investment advice. He hosts the Retire With Confidence podcast and holds a degree in economics from the University of Michigan. Hopwood frequently discusses cost-of-living risks, including insurance and tax impacts for retirees considering relocation.
