The Florida legislature and Governor Ron DeSantis have worked over the years to address Florida’s issue of high insurance prices, and the past few weeks have been hopeful. Florida’s state-backed insurance company is slowing down rate increases, and nearly a dozen new insurers have entered Florida’s market. That being said, why are all these drastic measures needed for Floridians to receive sufficient policies without breaking the bank? Are high insurance rates truly a trend that can be reversed?
If you need help finding new, affordable insurance in 2025, our team at Anderson & Associates Insurance should be your first call. We can help you secure the best coverage at the most competitive rates, no matter what policy you need.
Does Florida Have High Insurance Rates?
Unfortunately, Florida routinely tops the list of most expensive states for various forms of insurance, notably homeowner’s insurance and car insurance. Both of these policies are required to protect your assets and stay within the law, but that doesn’t mean paying monthly premiums is any less bearable. There are decades of factors that play a role, but some of the most significant reasons for high insurance costs in Florida include:
- Storm and Natural Disaster Risk: As you probably know, Florida is extremely susceptible to hurricanes, flooding, and extreme storms. This is a simple fact, making Florida naturally more risky than other states for insurers to provide coverage to. The high probability of costly claims leads companies to charge elevated premiums to offset potential losses. Not only is paying out claims expensive, but as you can see from the previous hurricane system, the simple act of reviewing claims is a long process taking weeks or months.
- Litigation & Fraud: Florida has long been known for its high volume of insurance-related lawsuits due in part to Florida’s no-fault system for car insurance. Fraudulent claims lead to higher costs for everyone, even if you haven’t recently filed a claim or litigated against the company.
- Market Volatility: In the past, many insurance companies left the state entirely or scaled back operations. This means that the companies that did not leave the state suddenly had many more residents seeking coverage at once, along with many Floridians seeking insurance through the state-backed system.
Even though the past few years have not been amazing regarding affordable, easy-to-access insurance coverage of all types, things are turning around. Do you need a new insurance policy, or are your current policies lacking in key areas? If so, our team at Anderson & Associates Insurance wants to help.
How You Can Find Quality, Affordable Insurance in Florida
Even though insurance in Florida has historically been higher than in other parts of the country, there is good news in 2025. After years of various state legislative actions, 11 new insurers have recently entered Florida’s market, increasing competition. State-led legal reforms helped these companies stabilize risk, improve the claims process, and curb fraudulent litigation. Previously, some insurers were hesitant to operate in Florida because of fraudulent litigation and issues with the claims process, on top of the financial risks posed by the state’s history of storms. With greater confidence in the market, new providers can offer more competitive rates to Florida policyholders, and rates are increasingly slower in Florida than in any other state. Could this be the beginning of the end of high insurance rates?
Regardless of recent trends and efforts by the state of Florida to lower insurance rates, you never know what kind of policy is available if you don’t explore your options. Contact Anderson & Associates Insurance today to speak with our team and discover if more affordable, higher quality homeowners or car insurance policies you can take advantage of are on the market.
