ORLANDO, Fla. — State regulators are announcing that the five largest car insurance companies in Florida are cutting rates for this year, with average savings of 8%.
Florida Insurance Commissioner Mike Yaworsky says these new rate cuts will affect 78% of the drivers in Florida. Savings will depend on driving record, the vehicle model and the specific insurance company.
Bryan Russi has been driving in Florida for 30 years and paying for car insurance that entire time. He’s happy to hear his car insurance bill with GEICO is going down this year.
“With prices being up on so many things right now, and taxes being so high in other areas … anywhere we can save right now, I think it’s gold,” Russi said.
The Florida Office of Insurance Regulation says Progressive, GEICO, State Farm, Allstate and USAA will reduce rates by an average of 8% this year.
Insurance agent Ramon Moronta with Pine Street Insurance says these changes will lower costs for many people.
“They are going to see real savings,” Moronta said. “Actually, currently we’re quoting, and we are seeing some of those savings come through.”
The Office of Insurance Regulation says 700,000 GEICO customers will see rate relief starting in April. State regulators approved three rate cuts for AAA over the past year to lower premiums by an average of 15%. USAA is lowering rates by an average of 7% starting this May.
Moronta says state laws passed in 2022 and 2023 help insurance companies save money on legal fees when attorneys sue them, and now some of those savings are being passed on to consumers.
“They’d have to transfer that costs onto you. Now that it’s been a couple of years since that legislation has been pulled through, we’re now able to see those savings,” Moronta said.
Russi says so many people rely on their cars and not public transportation in the Orlando area that you have to have car insurance.
“It’s so important to have transportation and have that up to date so, I think this is something that everyone’s going to benefit greatly from,” Russi said.
To give an example, a family with a car insurance bill of $3,000 per year, saving 8%, would save $240 per year.
Moronta recommends shopping around for new car insurance rates every year, especially for drivers who have had a traffic ticket in the past few years, because if the ticket has dropped off the record, there are potential savings.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.