The numbers are in, and they are impossible to ignore. A new independent study commissioned by the American Property Casualty Insurance Association found that Florida policyholders paid nearly $3 billion less for homeowner and auto insurance in 2025 than they did in 2024, a direct result of landmark lawsuit abuse reforms passed in the 2022-2023 legislative sessions. For anyone who has argued that reigning in lawsuit abuse would not lower prices for everyday consumers, Florida has rendered its verdict.
The study, conducted by Moore Actuarial Consulting and James Lynch Casualty Actuary, found that changes to Florida law have stabilized the state's property insurance market, reduced excessive litigation, and opened the door to genuine competition. The $3 billion in premium reductions breaks down to a $1.29 billion drop in property insurance and a $1.7 billion reduction in auto insurance premiums statewide. Property insurance rate increases fell from an average of nearly 10% in 2023 to less than 1% in 2025. Auto insurance rates dropped approximately 4% in 2025, compared to a 7% average increase Floridians endured in 2022.
These results trace directly to House Bill 837, signed by Governor Ron DeSantis in 2023. The law created a two-year statute of limitations on general negligence lawsuits, replaced a system that allowed unlimited plaintiff recovery with a comparative fault model barring recovery when a plaintiff is more than 50% at fault, and eliminated one-way attorney fees that had long incentivized meritless litigation at consumers' expense. The results have been transformative.
Homeowner insurance litigation dropped from a peak of more than 8,000 lawsuits filed against insurers in 2021 to just 2,500 by the end of 2025. Twenty new property and casualty insurers have entered Florida's marketplace since the reforms took effect, bringing more than $850 million in new capital into the state.
Perhaps the clearest sign of how thoroughly the market has turned around: Citizens Property Insurance, the state's insurer of last resort, has seen its policy count fall to an all-time low of 278,662, down from 1.41 million in October 2023. Citizens President and CEO Tim Cerio called it "great news, and again attributable to the reforms."
The industry agrees. Chase Mitchell, Assistant Vice President of State Government Relations at APCIA, put it plainly:
"The data shows a clear and compelling trend: litigation is down, competition is increasing, market stability is improving, and home and auto insurance costs are trending downward. Consumers are benefiting from more coverage choices and increasingly competitive pricing."
Mitchell added that "affordable and available insurance is essential to helping Floridians protect their homes, businesses and vehicles when the worst happens," and that these reforms have put the state "on a much stronger and more sustainable path."
The benefits extend beyond premium savings. Policyholder dividends jumped 118% from 2023 to 2025, and major insurers have announced additional policy credits and dividends totaling more than $1.4 billion for Florida car insurance consumers in 2026 alone.
The proof of concept is established. States across the country continue to watch consumers pay the price for unchecked lawsuit abuse and runaway litigation costs. Florida chose a different path, and its residents are measurably better off because of it. Lawmakers in every state facing soaring insurance premiums now have both the evidence and the blueprint. The question is whether they have the will to act.