AAA Cuts Florida Auto Insurance Rates 10 Percent, Its Third Reduction of 2026

AAA is cutting auto insurance rates for its Florida customers by an average of 10 percent, the company's third reduction in the state this year and the largest of the three. The cut applies to AAA's Florida Select Auto and Select Package Auto products and is projected to save Florida policyholders more than $35 million a year, according to the announcement reported Friday by WFLA.

The new rates take effect Dec. 1 for new policies and Feb. 1, 2027, for renewals. As with any rate filing, what an individual driver sees depends on coverage, vehicle, driving record, location and other risk factors, so some policyholders will save more than 10 percent and some less.

What AAA is changing

AAA sells Florida auto coverage through two carriers: Auto Club South Insurance Company, which writes monoline auto policies, and Auto Club Insurance Company of Florida, which writes package policies that bundle auto with home coverage. The new reduction covers the Select Auto and Select Package Auto programs.

It follows two earlier rounds in 2026. The first trimmed rates by an average of 4.2 percent on monoline auto policies and 1.7 percent on package auto policies. The second, announced in June, cut monoline auto rates an average of 5 percent and package auto rates an average of 4 percent, worth more than $16 million a year across more than 133,000 Florida auto policyholders. Those two earlier adjustments have produced more than $70 million in annual savings for Florida customers, according to the company's figures as reported by WFLA.

The June filing also included homeowners coverage. AAA reduced rates on its Select Package Home program by an average of 5 percent, worth more than $12 million a year across 86,000 Florida home policies, with the lower rates effective March 1, 2026, for new business and May 1, 2026, for renewals. Jennifer Pintacuda, president of AAA's Florida-based insurance companies, said at the time that the decrease reflected the company's commitment to offering competitive, affordable coverage for Floridians. No new home insurance reduction was announced alongside this week's auto cut.

AAA attributes the reductions to improving conditions in Florida's insurance market and to the legal changes state lawmakers enacted in late 2022 and 2023, which the company says have helped stabilize claims costs.

How this fits the statewide trend

AAA is not an outlier. Florida's auto insurance market has been filing rate decreases for roughly two years, after a decade in which the state ranked among the most expensive in the country for car insurance.

Office of Insurance Regulation data reported in March showed the five largest auto insurance groups in Florida, which together hold about 78 percent of the market, indicating an average rate change of roughly negative 8 percent for 2026. The same group had sought an average reduction of 7.4 percent in 2025. By mid-2026, more than 40 Florida insurers had filed for rate decreases since the start of 2025.

Individual carriers have moved in the same direction. The table below shows filings reported this year.

Insurance Commissioner Mike Yaworsky has credited the legislative changes, saying the historic reforms continue to drive auto rates down, with nearly 80 percent of Florida's auto policyholders seeing lower rates for 2026.

The claims math behind the cuts

The numbers insurers watch are loss ratios, the share of premium dollars paid out in claims. Florida's personal auto liability loss ratio was 52.5 percent in 2025, the lowest in the state in 15 years and the lowest in the nation, according to regulators' figures. The loss ratio on vehicle damage claims fell from 112 percent in 2022, a level at which insurers were paying out more than they collected, to 49.5 percent in 2025.

That turnaround traces to two sessions in Tallahassee. In December 2022, lawmakers meeting in special session eliminated one-way attorney fees and assignment of benefits in property insurance, the tools that had driven a surge in litigation. In March 2023, House Bill 837 extended the change across civil litigation generally: it ended one-way attorney fee awards in most insurance cases, moved Florida from a pure comparative negligence standard to a modified standard that bars recovery for a plaintiff found more than 50 percent at fault, and cut the statute of limitations for general negligence claims from four years to two.

Consumer attorneys and some lawmakers have argued the changes went too far, leaving injured drivers with less leverage against insurers and shifting savings to shareholders. Insurers and the regulator counter that the filings now on record show the savings reaching policyholders. Both things can be measured only over time, and the rate filings are the clearest public evidence either way.

What it means for Florida drivers

Florida drivers still pay well above the national average, and a 10 percent cut on a $2,500 annual premium is $250, not a reset. The reductions also sit alongside other household costs that have not fallen, including the price of vehicles and repairs.

A few practical points follow from this week's filing:

• Renewal notices arriving before Feb. 1 will still carry the old AAA rates; the change shows up at the first renewal on or after that date.
• Drivers shopping for a new policy see the lower rates starting Dec. 1.
• Because carriers are filing decreases at different times and in different amounts, the ranking of the cheapest insurers for a given driver is shifting month to month, which makes comparison shopping more valuable than usual.
• Bundling auto and home coverage, multi-car discounts, paperless billing, electronic funds transfer and paid-in-full payment are the standard levers AAA cites for additional savings.

Drivers should also confirm that their coverage still matches their situation. Florida's minimum requirements, $10,000 in personal injury protection and $10,000 in property damage liability, have not changed and remain among the thinnest in the country, which is why many agents recommend carrying bodily injury liability even though the state does not require it of most drivers.

What's next

More filings are expected. Regulators have approved decreases from dozens of personal auto carriers over the past two years, and the office reviews each one for whether the proposed rate is adequate, not excessive and not unfairly discriminatory. The open question for 2027 is whether the decline flattens out as the one-time effect of the litigation changes works through insurers' books, or continues as reserves release. For now, Florida's auto market is producing the rarest kind of insurance news in this state: bills that go down.