Exclusive: Florida insurance rates drop as companies announce cuts

FORT MYERS, Fla. —

Florida's insurance rates for homes and autos are seeing significant reductions as six companies announce rate cuts, according to the state's insurance commissioner.

Walter Baretta of Cape Coral, who works in construction, understands the financial burden of insurance.

"Sometimes those payments are as high as what the mortgage payment is," he said.

Nick Tino, also from Cape Coral, frequently drives to Miami and welcomes the news of insurance rate reductions.

"Insurance dropping is big for us," he said. "Anything that can help us in our pockets, at the pumps, definitely."

Florida Insurance Commissioner Michael Yaworsky said, "We're seeing very, very strong reductions taking hold throughout the state."

He explained that the rate decreases are a result of reforms addressing excessive third-party behavior, including lawsuits.

"Citizens was being sued over 800 times a month, prior to the reforms," he said.

Citizens Insurance is set to see an average rate decrease of 8% this spring statewide.

Yaworsky noted, "It can be 36 months before a rate approved by the office can actually be seen by the consumer."

Progressive Insurance is making some of the most significant cuts in auto rates.

"They've had to return a billion dollars back to every policyholder that they have on the auto side. That's an average of $330 per person," Yaworsky said.

Insurance agent Doug Nellans from The Insurancenter in Fort Myers is witnessing the rate cuts firsthand.

"On the front lines, we're seeing rate decrease on new business and renewals," he said.

Nellans commented on the impact of the reductions, stating, "Because of the high cost of homeowners and auto insurance, even a 5% to 10% reduction does indicate a tremendous amount of savings. Insurance companies are optimistic this trend will continue."

Yaworsky emphasized the importance of ensuring that the reductions are substantial enough to justify business practices.

"We're making sure as these reductions come in that they're enough of a reduction really to justify their business practices," he said.

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