NEW DATA: FLORIDA AUTO INSURANCE RATE CUTS SHOW PATH TO LOWER COSTS FOR NEW YORKERS

Nearly 80% of Florida Drivers Expected to See Lower Rates, With Rate Cuts, Refunds, and Premium Credits Delivering Billions in Consumer Savings

NEW YORK – Newly released data from Florida showing steeply declining auto insurance rates following recent legislative reforms highlight the potential savings for New York drivers under Governor Kathy Hochul’s plan to lower car insurance costs.

Florida regulators announced that the state’s five largest auto insurance groups – Progressive, GEICO, State Farm, Allstate, and USAA – are delivering an average rate decrease of approximately 8% for 2026, covering about 78% of Florida’s auto insurance market. Nearly 80% of Florida auto policyholders are expected to see lower rates next year.

The reductions build on earlier premium decreases, including an average 7.4% rate reduction for 2025 among the same insurers. In addition to lower rates, insurers are returning significant savings directly to consumers. Progressive reported nearly $1 billion in refunds to approximately 2.7 million Florida policyholders, while GEICO recently announced rate reductions affecting more than 700,000 drivers.

“States that have tackled the root causes of rising auto insurance premiums are seeing real results, including billions of dollars returned to drivers,” said CAR spokesperson James Freedland. “Governor Hochul’s plan brings similar reforms to New York, which would lower premiums and deliver real savings for drivers across the state. The results are already here. Now it’s New York’s turn to take action.”

New York drivers pay more than $4,000 a year on average for car insurance – nearly double the national average – with some policyholders paying close to $7,000 annually just to stay insured. Experts agree those costs are being driven by insurance fraud, including staged car accidents and abuse of the system.

Governor Hochul has proposed reforms to lower auto insurance costs by cracking down on fraud, limiting payouts for drivers engaging in unlawful behavior, and modernizing litigation rules. Notably, the plan directs the state to re-examine the Excess Profit Law to ensure savings from these reforms benefit consumers before insurers. The plan also increases transparency on rate changes and rewards safe driving.