The latest Consumer Price Index (CPI) report released today once again headlines that auto insurance remains a significant contributor to inflation, consistently rising over the last 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 3.6 percent over the last year. Other indexes with notable increases over the last year include medical care (+3.4 percent), household furnishings and operations (+3.9 percent), used cars and trucks (+6.0 percent), and motor vehicle insurance (+4.7 percent).

Lawsuit abuse is prevalent across the United States, leading to increased costs for all Americans by diverting resources that ought to benefit communities and taxpayers. To alleviate the escalating auto insurance premiums and safeguard consumers, lawmakers must prioritize reforming lawsuit abuse.

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.