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 3.1 percent over the past 12 months. The shelter index increased 3.7 percent over the last year. Other indexes with notable increases over the last year include medical care (+3.5 percent), household furnishings and operations (+3.4 percent), motor vehicle insurance (+5.3 percent), and recreation (+2.4 percent).

Lawsuit abuse is widespread throughout the United States, causing higher prices for all Americans by redirecting funds that should be going to the communities and taxpayers. To reduce the rising costs of auto insurance premiums and to protect consumers, legislators need to make lawsuit abuse reform a top priority. 

After passing lawsuit abuse reform legislation in Florida, drivers are now seeing a decrease in auto insurance rates. According to Former Florida Speaker Paul Renner in the Miami Herald:

“The state’s five largest insurers — Progressive, Allstate, GEICO, State Farm and USAA — are collectively cutting rates by an average of 6.5% this year. These companies cover close to 80% of Florida’s insured motorists. Yet just before our reforms, premiums spiked by 30% in the span of a single year.”

Florida is proof lawsuit abuse reform works and can be recreated in other states.