Florida drivers are seeing relief in their auto insurance rates after years of steady price increases. According to an article from ABC Action News:

“In a rare turn of good news, Florida’s top five auto insurance groups—which together cover nearly 80% of the state’s insured drivers—are cutting rates by an average of 6.5% in 2025. Some companies are slashing rates by as much as 11.5%, signaling what state leaders say is a much-needed shift toward market stability.”

The auto insurance reductions in Florida are not being felt elsewhere across the country. According to the latest Consumer Price Index (CPI) report released earlier this month, auto insurance continues to be a driving force behind inflation, steadily increasing over the past year across the country. 

Florida offers a compelling case study. Just two years ago, Florida’s auto insurance premiums spiked by more than 30%, driven largely by lawsuit abuse and excessive litigation costs.

Thanks to key reforms that limited lawsuit abuse, insurance prices have lowered for Floridians across the state.

“According to state data, Florida’s personal auto liability loss ratio—a metric that measures how much insurers spend on claims compared to premiums collected—has dropped from 80.5% to just 53.3%, the lowest in the nation.”

The reforms are working, according to the Florida Office of Insurance Reform: 

“For 2025, Florida’s top five auto writer insurance groups are indicating an average -6.5% rate change, down from an average +4.3% in 2024 and a staggering average of +31.7% in 2023. The top five auto writer insurance groups amount to 78% of Florida’s auto market. In addition, to optimistic auto rate changes, Florida is reporting a remarkable reduction in the personal auto liability loss ratio, down to a 53.3% on average in 2024—the lowest in the nation.”

This is proof that meaningful lawsuit abuse reform is possible and has real effects for drivers. Savings could be significant, someone currently “paying $2,000 a year for car insurance might save around $130 annually with a 6.5% cut.” These savings will now be going back to hardworking taxpayers and not opportunistic trial lawyers. 

It’s time for other states to follow Florida’s lead and enact reforms to create a more just legal system and lower insurance prices for all.