For years, drivers in Hollywood, Florida, have felt the sting of some of the highest car insurance prices in the country. However, as we move into 2026, the news is finally getting better. Thanks to big changes in state laws and new rules for insurance companies, many Florida families are starting to see their monthly bills go down or are even receiving surprise credits in the mail.
Table of Contents
- Key Takeaways: Florida’s Auto Insurance Rate Drop
- Why are Florida auto insurance rates finally starting to drop?
- What role did the 2023 legal reforms play in saving money?
- Who is getting a rebate check or insurance credit in 2026?
- Are the biggest insurance companies actually cutting their prices?
- What should I know about the possible change to "At-Fault" insurance?
- Frequently Asked Questions (FAQs)
- Conclusion
Key Takeaways: Florida’s Auto Insurance Rate Drop
- Rates are Finally Stabilizing: For the first time in years, the average auto insurance rate in Florida is expected to drop by about 6.5% throughout 2026.
- Lawsuits are Down: New state laws (like House Bill 837) have made it much harder for lawyers to file unnecessary lawsuits. Since insurance companies are spending less on legal fees, they are passing those savings on to you.
- The Progressive Rebate is Real: Progressive is returning nearly $1 billion to Florida drivers. If you qualify, you could see an average credit of $300 per vehicle on your bill in early 2026.
- State Farm Led the Way: State Farm cut its rates by about 10% in early 2026, saving many families around $400 a year. Other big companies are expected to lower their prices to stay competitive.
- More Competition in Hollywood: Since 2024, 17 new insurance companies have entered the Florida market. More companies fighting for your business means better prices for safe drivers.
- Big Changes Coming in July: Florida might switch from a “No-Fault” (PIP) system to an “At-Fault” system on July 1, 2026. This would change how medical bills are paid after a crash and could change your monthly premium.
- Shop Around Now: Because the market is changing so fast, the company that was the cheapest for you last year might not be the best deal anymore.
Why are Florida auto insurance rates finally starting to drop?
Florida auto insurance rates are stabilizing because of new laws that reduced the number of lawsuits and discouraged fraud. Since early 2025, major insurance companies have seen their costs go down, which allows them to lower premiums or give money back to their customers in 2026. This is a huge turnaround from the double-digit price hikes seen in 2023.
For a long time, Florida had a “litigation problem.” This means that even small accidents often turned into expensive court cases. When insurance companies have to spend millions of dollars on lawyers, they pass those costs on to you. According to the Florida Office of Insurance Regulation (OIR), the top five insurance groups in our state have averaged a 6.5% rate decrease for 2025 and 2026 (Source: Florida Realtors). This is the first time in years that we have seen the market “cool off,” making it a great time for Hollywood residents to check if they can save.
What role did the 2023 legal reforms play in saving money?
The 2023 legal reforms, specifically House Bill 837, made it much harder for lawyers to file unnecessary lawsuits over minor accidents. By limiting how much lawyers can charge and shortening the time people have to file a claim from four years to two, the state has removed billions in extra costs from the insurance system.
Think of it like a leaky bucket. For years, the “leaks” were fraudulent claims and high lawyer fees. House Bill 837 acted like a patch for those holes.
- Hypothetical Example: Imagine you had a minor fender-bender on Hollywood Boulevard two years ago. Under the old rules, a lawyer might have been able to sue for a huge amount of money just for the “chance” of winning, even if the damage was small. Under the new rules, it is harder to file those “frivolous” or unnecessary suits. Because there are fewer lawsuits, companies like Allstate have reported that their costs for injury claims are down by 10% to 20% (Source: Insurance Journal). When the insurance companies pay out less in legal fees, they don’t need to charge you as much for your policy.
Who is getting a rebate check or insurance credit in 2026?
Millions of Florida drivers are receiving a “windfall” in 2026 through insurance credits, with Progressive alone returning nearly $1 billion to its customers. These refunds are happening because of a 1970s law that says if an insurance company makes too much profit over three years, they must give the “excess” money back to the people they insure.
This is one of the most exciting pieces of news for 2026. Governor Ron DeSantis recently announced that Progressive policyholders will see an average of $300 per vehicle returned to them (Source: Insurify).
- Who Qualifies? Generally, you must have had an active policy with Progressive as of December 31, 2025.
- How do you get it? Most drivers will see this as a “credit” on their bill, meaning their next payment might be $0 or much lower than usual. State officials are also talking to other big companies to see if they owe “excess profit” refunds to their customers too. If your company made a lot of money because of the 2023 laws, you might be next in line for a credit.
Are the biggest insurance companies actually cutting their prices?
Yes, major insurers are actively filing for rate cuts, with State Farm leading the way by slashing its average premiums by 10% in early 2026. This follows a series of smaller cuts that have totaled a more than 20% decrease for State Farm customers since late 2024. This signals that the market is finally becoming more competitive.
When one big company lowers its prices, others usually follow so they don’t lose customers.
- State Farm: Filed for a 10.2% decrease recently, which saves the average driver about $400 a year per vehicle (Source: Don’t Get Hit Twice).
- Market Competition: 17 new insurance companies have entered the Florida market since 2024. More companies mean more choices for you. In a city like Hollywood, where we have a lot of traffic and accidents, having more companies fight for your business is the best way to keep your costs down. If your current company hasn’t lowered your rate yet, it might be because they are waiting to see how their 2025 profits look, but the overall trend across Florida is definitely moving downward.
What should I know about the possible change to “At-Fault” insurance?
Florida is preparing for a major shift on July 1, 2026, where the state may move from a “No-Fault” system to an “At-Fault” system. This means the current Personal Injury Protection (PIP) would be replaced by mandatory Bodily Injury (BI) coverage. While this could change your premium, it is meant to make the system fairer by making the person who caused the crash pay for the damage.
Currently, Florida is one of the few states where your own insurance (PIP) pays for your medical bills no matter who caused the crash.
- The Proposed Change: Under the new plan, the minimum coverage would likely rise to $25,000 per person for bodily injury (Source: GreatFlorida Insurance).
- The Impact: For drivers who already carry high levels of insurance, this might not change their price much. But for drivers who only carry the bare minimum, their bills might go up slightly because they are buying more protection. However, the hope is that by getting rid of PIP (which is prone to fraud), the overall costs for everyone will stay stable in the long run.
Frequently Asked Questions (FAQs)
Do I have to call my agent to get the Progressive rebate?
No. If you qualify for the Progressive credit, it should happen automatically in early 2026. However, it is always a good idea to check your statement to make sure you received it!
Why is car insurance still expensive if rates are dropping?
While a 6.5% or 10% drop is great news, Florida is still the third most expensive state for car insurance. High repair costs for modern cars (with cameras and sensors) and our high population density in South Florida keep prices higher than the national average.
Will my rate go down if I have a bad driving record?
The rate cuts mentioned here are “average” cuts. If you have a recent at-fault accident or a speeding ticket, your individual rate might still stay high. These cuts help the most if you have a clean driving record.
What should I do if my renewal bill is higher than last year?
If your bill went up despite the news of rate cuts, it’s time to shop around! Because the market is changing so fast, your current company might not be the cheapest option anymore.
Conclusion
The “insurance storm” that hit Florida a few years ago is finally starting to clear. With legal reforms working to stop lawsuit abuse and big companies like State Farm and Progressive leading the way with cuts and rebates, there is a real chance for Hollywood drivers to save money in 2026. Understanding these changes—like the move toward an “at-fault” system and the return of excess profits—is the best way to make sure you aren’t paying more than you have to.
Is your car insurance bill still too high? Let us find the savings for you! Contact Finney Insurance in Hollywood, FL today. We are local experts who know exactly which companies are offering the best rates and rebates in 2026. Call us or visit our office for a free policy review and see how much you could be saving right now!
Watch this video for more details on the 2026 Florida rate drops
This video explains why Florida auto insurance rates are finally dropping in 2026 and what the new laws mean for your wallet.
