The latest Consumer Price Index (CPI) report released today once again indicates that auto insurance continues to be a driving force behind inflation, steadily increasing over the past year. According to the Bureau of Labor Statistics:

The index for all items less food and energy rose 2.9 percent over the past 12 months. The shelter index increased 3.8 percent over the last year. Other indexes with notable increases over the last year include medical care (+2.8 percent), motor vehicle insurance (+6.1 percent), household furnishings and operations (+3.3 percent), and recreation (+2.1 percent).

Lawsuit abuse is widespread throughout the United States, redirecting resources from genuine needs and leading to a continuous rise in expenses for all Americans. To mitigate the escalating auto insurance premiums and safeguard consumers, legislators across the country should focus on curbing lawsuit abuse. 

Although insurance rates have surged nationwide, Florida has experienced a decrease in rates following the implementation of lawsuit abuse reform legislation, effectively establishing a model for other states. Former Florida Speaker Paul Renner highlighted in the Wall Street Journal:

“Florida’s Office of Insurance Regulation announced in February that nearly two-thirds of automobile premiums are declining between 6% and 10.5% this year, depending on the insurer, with more decreases expected as filings continue. … My advice is simple: Make litigation and insurance rules fair, and watch as premiums come down.”

Florida provides a framework for the rest of the country. To lower insurance rates, ending lawsuit abuse is an essential first step.