Following lawsuit abuse reforms passed by the Florida state legislature, car insurance rates among the five largest carriers have decreased by an average of 6.5% just this year. These five carriers account for nearly 80% of  the market, meaning a majority of Florida residents will see a decrease in their auto insurance rates.

Legal reform works, and has real benefits for consumers, as modeled in Florida. Other states like Alabama have the chance to deliver savings to their taxpayers as well. Phyliss Kennedy, the former State Director of the National Federation of Independent Business (NFIB), wrote in the The Greenville Advocate detailing the mounting concern surrounding rising costs from lawsuit abuse in Alabama. 

According to the piece:

“According to the Institute for Legal Reform (ILR), lawsuit abuse cost Alabama households an average of $3,286 in 2022. That’s not pocket change. That’s money that could’ve gone toward rent, medical bills, groceries, or saving for college. Multiply that across thousands of families and it’s easy to see how legal system abuse hits where it hurts the most, at the kitchen table.”

Additionally, when Alabama small businesses are hit with lawsuits, they lack the legal teams or capital to fight back, leaving them forced to settle and face spiked insurance premiums and huge legal fees. These costs then get passed onto consumers who have to pay higher prices for goods and services.

The Alabama legislature has a chance to tackle one of the biggest issues for families in Alabama: a skyrocketing cost of living. These reforms worked in Florida, and can also work in Alabama to create a more and transparent legal system for all.